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PIA Praises Passage of TRIA Renewal Bill by Senate Banking Committee

PIA praised the Senate Committee on Banking, Housing and Urban Affairs for unanimously approving the Terrorism Risk Insurance Program Reauthorization Act (S. 2244) on Tuesday, June 3...
June 4, 2014

PIA praised the Senate Committee on Banking, Housing and Urban Affairs for unanimously approving the Terrorism Risk Insurance Program Reauthorization Act (S. 2244) on Tuesday, June 3. The bill would reauthorize the Terrorism Risk Insurance Act (TRIA) for 7 years. It is currently set to expire at the end of 2014.

“PIA applauds the action by the Senate Banking Committee to advance the reauthorization of TRIA and urges the full Senate to follow suit,” said PIA National Executive Vice President & CEO Mike Becker. “PIA strongly supports a clean bill providing for a long-term reauthorization.”

Meanwhile, House Financial Services Subcommittee on Housing and Insurance Chair Randy Neugebauer (R-Texas) is circulating a draft framework (TRIM) among committee Republicans to reauthorize the program for just three years, with a host of significant changes aimed at phasing out TRIA over time. A hearing is expected in the House later this month.

“PIA has long advocated for a straightforward reauthorization of this important law,” said PIA National Director of Federal Affairs Jon Gentile. “We look forward to working with the full Senate and the House Financial Services Committee to reauthorize TRIA in as straightforward a way as possible. Acts of terrorism do not fit the definition of insurable risk and it remains difficult, if not impossible, for underwriters to accurately determine premiums based on sound actuarial calculations. A TRIA backstop is needed to ensure that this coverage remains available and affordable, especially for small and mid-size commercial insureds.”

Seven-Year Extension to TRIA Clears Senate Banking Committee (Best’s News Service 6/3/14) (subscription)

Senate Panel Advances TRIA Extension (National Underwriter 6/3/14)

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