TRIA Reauthorization Passes Senate
On July 17, the Senate passed a 7 year extension of TRIA, the federal terrorism risk insurance program, by an overwhelming vote of 93-4. In additional to extending the program, the legislation (S. 2244) also adds two changes to further protect taxpayers. It gradually raises both the insurer co-payment from 15 to 20 percent and the mandatory recoupment threshold from $27.5 billion to $37.5 billion. In June, the Senate Banking Committee approved the legislation by a unanimous vote of 22 to 0.
On June 20, the House Financial Services Committee passed its TRIA bill (HR 4871) by a more contentious vote of 32-27 – along party lines. In addition to extending the program, the bill would also add many other changes to the bill, many of which BOMA feels would diminish the program and drive some insurers out of the market, making it more difficult for policyholders to continue to access terrorism risk coverage at reasonable rates and terms. It had been anticipated that the full House would vote on the legislation in late July, but now it appears that final action on this issue will be delayed, quite possibly until after the November elections.
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