Congress Seeks to Reauthorize Expiring Terrorism Risk Insurance Act
Publish Date: July 25, 2014
The Senate has overwhelmingly approved the Terrorism Risk Insurance Program Reauthorization Act of 2014 (S.2244), by a vote of 93-4. This would reauthorize the current TRIA program, long supported by ICSC, for an additional seven years while implementing further taxpayer safeguards and program enhancements. With such bipartisan support coming out of the Senate, the measure now goes to the House.
Meanwhile the House has been considering its own version: the TRIA Reform Act of 2014 (H.R. 4871), which would increase the program trigger from $100 million currently to $500 million; distinguish between conventional and nuclear, biological, chemical and radioactive (NBCR) terrorism; and include an opt-out clause for small insurers, among other changes. A full House vote could occur as early as next week. ICSC is concerned that drastic changes in the House version could hurt market capacity and raise premium costs.
The current program is set to expire at year-end, so prompt reauthorization is a top priority for retail real estate, supporters say. Property owners who have begun to see springing exclusions, sunset notices or similar exclusionary clauses in their property-casualty policies based on possible expiration of TRIA are urged to contact legislative assistant Mike Anderson, at (202) 626-1419 or email@example.com.