Legislation to protect the country’s national economic security from terrorism took an important step forward today with passage by the House of Representatives, the National Association of Mutual Insurance Companies said.
“By passing an extension of the Terrorism Risk Insurance Act, the House has made clear that the U.S. is committed to doing what is needed to persevere in the face of the threat of terrorism,” said Jimi Grande, senior vice president of government affairs for NAMIC. “NAMIC applauds the House for coming together to show its overwhelming support for TRIA and protecting the U.S. economy.”
Congress established the TRIA program in the wake of the 9/11 attacks to ensure that there was a stable, functioning private market for terrorism risk insurance. Following the attacks, many development projects were delayed or cancelled as terrorism coverage became very difficult to acquire. The program mandates insurers to offer affordable terrorism coverage and, in exchange, allows them to spread losses throughout the private sector and over time following an attack – if losses exceed certain thresholds, the federal government provides funds up front and then is repaid with interest. To date, no money has been paid out through the program, and studies of the terrorism insurance marketplace have found coverage to be widely available and affordable even in high-risk areas.
“The partnership established under TRIA has been perhaps the most effective and efficient government program in history,” said Grande. “Communities across the country have been able to grow and develop since 9/11 despite the lingering threat of terrorism and at virtually no cost to the taxpayer.”
The TRIA extension was passed unanimously by the House Financial Services Committee in October and was passed by the full House under a suspension of the rules, a process for legislation that has little or no opposition, by a vote of 385-22. It now moves to the Senate, which is expected to begin its consideration of TRIA reauthorization at the committee level in the coming days.
“In these partisan times it is increasingly difficult for Congress to pass even the most non-controversial items, and this vote should send a clear message across the Capitol,” Grande said. “There’s absolutely no reason for the Senate to wait to take up this important legislation, and we urge the chamber to make a top priority of passing a TRIA extension and provide that much-needed certainty for the economy before the end of this year.”
Article Posted: 11.18.19
Last Updated: 11.19.19