Terrorism Risk Insurance Act
In the aftermath of the 9/11 disaster, I was a strong supporter of the Terrorism Risk Insurance Act, which provided a federal backstop so that terrorism insurance would continue to be available in high-risk areas such as New York City. Based on the evidence to date, I believe that the private sector still will not offer adequate coverage to support economic development in high risk areas. To most effectively encourage the market to develop long-term solutions we need to continue TRIA as a federal backstop, not just for the short term, but for a mid- to long-term time frame.
Legislation
3/8/05 — H.R. 1153 - Terrorism Insurance Backstop Extension Act of 2005 - Extends the Terrorism Risk Insurance Act of 2002 through 2007 and requires the Secretary of the Treasury to determine whether TRIA should be extended to group life insurance.
12/17/05 – H.R. 4619 - Commission on Terrorism Risk Insurance Act - Amends the Terrorism Risk Insurance Act of 2002 to establish the Commission on Terrorism Risk Insurance. Directs the Commission to make recommendations to: (1) encourage the insurance industry to provide affordable terrorism insurance; (2) sustain or supplement the ability of the domestic insurance industry to cover terrorism losses; (3) reduce the federal role over time in any continuing federal terrorism risk insurance program; and (4) evaluate whether coverage under the Terrorism Insurance Program is necessary to permit redevelopment at sites of previous acts of terrorism.
Documents
12/13/05 – New York Delegation Letter to TRIA Conferees Requesting Inclusion of the Commission
10/25/05 – Letter from Cosponsors of H.R. 1153 to Chairman Oxley Requesting Markup
06/30/05 - New York Delegation Letter to Oxley Requesting TRIA hearing
More on Terrorism Risk Insurance Act
Washington, DC – The U.S. House of Representatives today passed an extension to the Terrorism Risk Insurance Act (TRIA) by a vote of 360 to 53. The legislation, which is crucial to the continued development of large commercial real estate projects in cities, will extend TRIA for seven years and help spur the further development of a private market for terrorism risk insurance. After the 9/11 terrorist attacks, many insurance companies excluded terrorism events from their insurance policies. As a result, Congress passed TRIA as a three year temporary program in 2002, which created a federal backstop to protect against terrorism related losses. In 2005, Congress extended the program for two additional years. TRIA is now set to expire at the end of 2007 unless Congress acts again to extend the law. The measure will now be sent to the President for his signature.
Washington, DC – Congresswoman Carolyn B. Maloney (D-Manhattan, Queens) today applauded the House Financial Services Capital Markets Subcommittee for passing the Terrorism Risk Insurance Revision and Extension Act (H.R. 2761), legislation that would extend the original Terrorism Risk Insurance Act (TRIA). Congresswoman Maloney, Chair of the House Financial Services Financial Institutions Subcommittee, is an original co-sponsor of H.R. 2761 and a strong advocate for a long-term TRIA extension.