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PIA Praises Seven-year TRIA Extension

WASHINGTON, December 19, 2007 - Approval of legislation by the U.S. House of Representatives to extend the Terrorism Risk Insurance Act (TRIA) for...
December 19, 2007

House Bill Provides Certainty, But Some Program Expansion Still Needed

WASHINGTON, December 19, 2007  - Approval of legislation by the U.S. House of Representatives to extend the Terrorism Risk Insurance Act (TRIA) for seven years will provide stability for insurance clients, according to the National Association of Professional Insurance Agents (PIA).

The House passed a bill by a 360-53 vote on December 18 that extends TRIA, which was scheduled to expire on December 31. In doing so, the House abandoned two previous attempts to greatly expand the scope of the program. The bill passed by the House mirrors one already adopted by the Senate, and adds coverage for acts of terrorism by domestic terrorists. President Bush had threatened to veto the previous House versions while saying he'd sign the Senate's version.

"Extending TRIA for a full seven years provides the kind of certainty that the insurance marketplace needs," said PIA National Executive Vice President & CEO Leonard Brevik. "We commend lawmakers for realizing that there is an ongoing need for a more permanent solution to insuring against terrorist attacks."

Several provisions that had been sought by the House as recently as a week ago were eliminated from the final bill, including a provision for coverage of nuclear, biological, chemical and radiological (NBCR) events; adding group life insurance to the backstop; and lowering the program's "trigger" level for coverage from $100 million to  $50 million.

"Getting TRIA extended for seven years is a major victory for our insurance clients across the nation who are required to have this coverage," said PIA National Senior Vice President Patricia A. Borowski. "At the same time, there were provisions in the previous House bills which will merit additional consideration at some point before the renewal expires, most importantly lowering the trigger level."

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America(SM). PIA's web address is www.pianet.com.

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