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PIA Praises Senate for Passing Bill to Reauthorize TRIA

PIA praised the U.S. Senate for passing the Terrorism Risk Insurance Program Reauthorization Act (S. 2244) on Thursday, July 17, by an overwhelming, bipartisan vote of 93-4...
July 24, 2014

PIA praised the U.S. Senate for passing the Terrorism Risk Insurance Program Reauthorization Act (S. 2244) on Thursday, July 17, by an overwhelming, bipartisan vote of 93-4. But despite the lopsided victory in the Senate, the House remains divided, causing uncertainty.

S. 2244 extends the TRIA program in its current form for seven years, but it increases industry co-shares by one-third under a five-year phase-in period. It maintains the current trigger for federal support at $100 million. Before the vote, the White House issued a Statement of Administration Policy (SAP) supporting the passage of S. 2244.

“PIA applauds the Senate for passing legislation that reauthorizes this vital program that provides for a financial backstop in the event of a terrorist attack,” said PIA National Director of Federal Affairs Jon Gentile. “We are pleased that the Senate bill extends TRIA for a full seven years and that it seeks to ensure the widest possible availability and affordability of terrorism insurance for consumers. We urge the House to quickly follow suit, so that Congress can get to work resolving differences between the Senate and House versions of the legislation.”

An amendment providing for the creation of NARAB II, the National Association of Registered Agents and Brokers, offered by Senator Jon Tester (D-Mont.) was approved by voice vote. PIA supports NARAB II, as it addresses our long-term priority of aiding the agent licensing process.

Another amendment, offered by Senator David Vitter (R-La.), to ensure that membership on the Federal Reserve Board of Governors includes someone with community banking expertise passed unanimously by voice vote. An amendment by Senator Jeff Flake (R-Ariz.) to create an advisory committee to encourage and study the growth of nongovernmental, private market reinsurance capacity passed on a bipartisan vote of 97-0.

The only amendment to be defeated was one offered by Senator Tom Coburn (R-Okla.); it would have allowed the federal government more time to recoup premiums after a terrorist attack, if necessary due to economic conditions or the affordability of commercial insurance for small and medium-sized businesses. That amendment failed 47-49.

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