Thursday, September 20, 2007
For anyone who missed the news, the Terrorism Risk Insurance Revision and Extension Act of 2007 (H.R. 2761) passed the House yesterday afternoon, by a final vote of 312-110. Key elements of the House bill are that it would extend the program for an additional 15 years (until December 31, 2022), and expand coverage under the program to include domestic acts of terrorism, group life losses and chemical, nuclear, biological and radiological (CNBR) terrorism. We hasten to add that the general consensus among insurers that a continuing federal role is essential to ensuring that terrorism risk insurance remains available to businesses is not a view shared by all. Earlier this week the Administration said TRIA should be phased out in favor of a private market for terrorism insurance. That said, the Administration did say it is willing to work with Congress as the bill moves through the legislative process so that H.R. 2761 meets the critical elements of an acceptable extension. As the clock counts down to TRIA expiration on December 31, 2007, weâ€™ll be watching this issue closely, so let us know your views. Check out I.I.I. information on terrorism risk online.