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House Committee Markup of TRIA Bill Set for This Thursday

The House Financial Services Committee is tentatively scheduled to hold a markup of the committee’s draft bill to reauthorize the Terrorism Risk Insurance Ac on Thursday, June 19...
June 18, 2014

The House Financial Services Committee is tentatively scheduled to hold a markup of the committee’s draft bill to reauthorize the Terrorism Risk Insurance Act (TRIA) on Thursday, June 19. PIA staff has had an opportunity to read much of the bill and can report on some of the highlights of the legislation. This is by no means an exhaustive list of changes and it is possible further changes may be made before or during the markup:

  • Program is extended for 5 years to December 31, 2019; this is up from a proposed 3-year reauthorization in the House framework draft.
  • Eliminates the proposal in the framework to establish a Capital Reserve Fund.
  • Decreases the federal share of insurers’ losses for non-Nuclear NBCR covered events to a 80 percent copay by 2017 (down from the current 85 percent level, but up from 75% proposed in the framework draft). For nuclear attacks the copayment share remains at 85 percent.
  • Removes a requirement that appeared in the House framework that terrorist acts must be a result of actions taken by foreign terrorist. It would have excluded domestic terrorists.
  • Trigger will increase to $500 million by 2019, up from its current level of $100 million. 


As drafted, there are no unrelated provisions in the House TRIA bill; however, a package of amendments put together by the chairman, called a manager’s amendment, is likely to be offered at the markup. Notably, congressional staff has told PIA either the manager’s amendment or another amendment offered during markup may include notable issues such as recently introduced legislation to protect insurance companies from bank-centric capital requirements under Dodd-Frank, or NARAB II.

Meanwhile, a spokesman for the National Association of Mutual Insurance Companies (NAMIC)says the House bill will have a “punitive impact on smaller, regional and niche insurers and their policyholders” if it becomes law. Jim Grande says increasing the program trigger will serve to either concentrate risk or reduce overall take-up rates “as smaller and medium-sized insurers are forced from the program.”

What It Means to Agents: PIA is pleased the House bill will reflect our efforts as seen in the bill, such as the longer reauthorization and the elimination of both the Capital Reserve Fund and the proposal to distinguish between foreign and domestic terrorism.
PIA will continue to advocate for as clean, straightforward a reauthorization as possible. We will urge Congress to stick to a lower trigger level as the TRIA reauthorization process moves along in the House and Senate. As previously reported, the Senate TRIA bill (S. 2244) is a seven-year reauthorization of the program that leaves the trigger level at $100 million.

Scheduling note: While we have not heard any talk about this hearing being postponed, it should be noted that House Republicans are also scheduled to caucus on June 19 to select a replacement for Majority Leader Eric Cantor, who announced his resignation from leadership after being defeated in a primary.

One-Page Summary of Draft House Bill
Section-by-Section of Draft House Bill
Industry Groups Take Issue With House TRIA Provisions (National Underwriter 6/13/14)