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NAMIC Extols House/Senate Extension of TRIA

Bill Now on its Way to President

WASHINGTON, D.C. (Dec. 17, 2005) – Tonight, the National Association of Mutual Insurance Companies (NAMIC) congratulated the House of Representatives for passing the TRIA extension.

“NAMIC is gratified that the extension is now on its way to the President,” said Charles M. Chamness, president/CEO of NAMIC. “The House approved the identical Senate version tonight, which is good news for NAMIC members. NAMIC is confident that the President will sign the bill without delay.”

The new version of TRIA that will go before the president will no longer mandate coverage for farmowners multi-peril insurance, a position strongly advocated by NAMIC on behalf of its farm mutual insurance company members. Additionally, NCBR coverage will not be required in property and liability policies, a provision in the House-passed bill that NAMIC opposed.

“This kind of success is a direct result of the grassroots leadership of NAMIC members who visit Capitol Hill through NAMIC’s Congressional Contact Program (CCP) and conduct more than 300 meetings with the members of the House and Senate during each calendar year. NAMIC appreciates the support of Congress in renewing this important legislation.”

Calling the culmination of the TRIA extension an “extraordinary effort,” Chamness specifically recognized the commitment of House Financial Services Committee Chairman Mike Oxley, R – Ohio, Ranking Democrat Barney Frank, D- Mass., Subcommittee on Capital Markets Chairman Richard Baker, R – La., Congressman Paul Kanjorski, D – Pa., Congresswoman Sue Kelly, R – N.Y., Senate Banking Committee Chairman Richard Shelby, R – Ala., Ranking Democrat Paul Sarbanes, D – Md., and Senators Christopher Dodd, D – Conn., and Robert Bennett, R – Utah.

Highlights of the legislation include:

  • TRIA will be extended for two more years.
  • Coverage will be somewhat scaled back. For example, coverage will no longer be mandated for farmowners multi-peril insurance, a position strongly advocated by NAMIC on behalf of its farm mutuals.
  • Commercial auto, burglary/theft, surety and professional liability will no longer be covered.
  • NCBR coverage will not be required in property and liability policies, a provision in the House-passed bill that NAMIC opposed.
  • The industry's deductible will increase:
    2005 – 15 percent
    2006 – 17.5 percent
    2007 – 20 percent
  • The event trigger will increase:
    2005 – $ 5 million in insured losses
    2006 – $ 50 million in insured losses
    2007– $100 million in insured losses
  • The legislation provides for a "President's Working Group" to be appointed to review the effectiveness of the program and make recommendations for improvement. NAMIC will work with members of the House and Senate to created a permanent public/private partnership on terrorism coverage when the TRIA extension expires on Dec. 31, 2007.

For further information, contact
Georgiann M. Howell
Communications Director - NAMIC Federal Affairs
122 C Street, NW
Suite 540
Washington, D.C. 20010
202-628-1558
ghowell@namic.org

Posted: Saturday, December 17, 2005 12:00:00 AM. Modified: Saturday, December 17, 2005 10:31:35 PM.

317.875.5250 - Indianapolis  |  202.628.1558 - Washington, D.C.

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