House of Representatives Passes Terrorism Risk Insurance Revision and Extension Act
|September 20, 2007|
H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA|
Washington, DC - The U.S. House of Representatives today passed H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA), by a vote of 312 to 110. The legislation will extend the Terrorism Risk Insurance Act (TRIA) for fifteen 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 this year unless Congress acts again to extend the law.
“TRIA has helped make terrorism insurance available and affordable to businesses, particularly those in our major urban areas. Improving and extending this program will help spur America’s continued economic development by providing certainty that terrorism insurance will be available for years to come,” stated Congressman Mike Capuano.
“This legislation is essential to the continued growth and development of American cities and to provide needed protections for those who work, live and invest in downtown areas,” said Frank. “This is a matter of national security and we cannot allow murderous thugs to define where we should build, where we should live and where we should work.”
Since its enactment, TRIA has ensured the availability of affordable terrorism risk insurance in the marketplace and thereby fostered continued urban development and real estate development in the United States. While the TRIA program has successfully kept terrorism insurance affordable, the President’s Working Group on Financial Markets’ most recent report concluded that a private market for terrorism reinsurance is virtually nonexistent - especially with regard to nuclear, biological, chemical, and radiological (NBCR) acts of terrorism. The Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA) includes provisions to: