On The Hill Update

A quick update on the terrorism and flood measures in the Senate. The bill to further extend the federal terrorism risk insurance program passed the Senate Banking Committee by a vote of 20-1 yesterday. The Senate bill would extend the program for a further seven years from its upcoming expiry December 31. Undoubtedly this is a positive step, as a continued federal terrorism risk insurance program is critical to ensuring that terrorism insurance remains available to those businesses that want and need the coverage. The White House also said it would back the Senate version, another positive development. While the bill does not expand the program to cover chemical, nuclear, biological and radiological (CNBR) terrorism, it does require a study into the existing insurance market for CNBR by the Government Accountability Office (GAO). On what was a busy day, the same Senate Committee also approved legislation to reform the National Flood Insurance Program (NFIP). The contentious issue of adding windstorm coverage to the flood program was not included in this measure. For more on the risks posed by expanding the NFIP to include windstorm, check out I.I.I. president Dr. Robert Hartwig’s testimony delivered before the U.S. House subcommittee on Housing and Community Opportunity earlier in July.  

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