Terrorism Risk Insurance Still Needed: NY Members of Congress Urge Financial Services Chair to Move on Legislation to Extend TRIA

 WASHINGTON, DC - A day after Treasury Secretary John Snow notified Congress that the administration opposes the extension of the Terrorism Risk Insurance Act (TRIA), a group of New York Members of Congress took action to ensure TRIA’s survival. Today, twenty-one bipartisan New York Members - led by Representative Carolyn Maloney (NY-14) - sent a letter to Rep. Michael Oxley (R-OH), Chairman of the House Financial Services Committee, requesting that he move forward promptly on pending legislation to extend the Terrorism Risk Insurance Act (TRIA), which will expire at the end of this year (PDF of letter: http://maloney.house.gov/sites/maloney.house.gov/files/documents/olddocs/banking/063005ltrTRIA.pdf).  

TRIA has buoyed economic development in the aftermath of 9/11 by insuring losses in the event future acts of terrorism. TRIA requires property and casualty insurers to make available terrorism insurance and provides a government backstop covering 90% of insured losses, up to $100 billion each year, after set insurer deductibles.

“The effects of 9/11 and the threat of terrorism are not over by a long shot,” said Maloney. “Letting TRIA expire is unwise in the current climate. It would stunt economic development near Ground Zero and across the country. I hope Chairman Oxley will see this logic and act on the bill before the committee.”

The New York delegation was responding to the release of a Treasury report on TRIA's effectiveness, accompanied by an announcement from the administration that it will require substantial changes in any extension of TRIA.

In support of extending TRIA, the delegation letter noted the conclusion of the Treasury report that "the immediate effect of the removal of the TRIA subsidy is likely to be less terrorism insurance written by insurers, higher prices and lower policyholder takeup." The members signing expressed opposition to the changes demanded by the administration as a condition for TRIA renewal and urged Chairman Oxley to move forward with H.R. 1153, a bill which tracks a bipartisan bill that the Financial Services Committee reported favorably to the House in the last Congress.

Signers: Carolyn Maloney (D-NY), John Sweeney (R-NY), Gregory Meeks (D-NY), Jerrold Nadler (D-NY), Steve Israel (D-NY), Nydia Velasquez (D-NY), Brian Higgins (D-NY), Major Owens (D-NY), Timothy Bishop (D-NY), Eliot Engel (D-NY), Carolyn McCarthy (D-NY), Edolphus Towns (D-NY), Jose Serrano (D-NY), Vito Fossella (R-NY), Sue Kelly (R-NY), Joseph Crowley (D-NY), Charles Rangel (D-NY), Peter King (R-NY), Maurice Hinchey (D-NY), Gary Ackerman (D-NY), Anthony Weiner (D-NY).

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