The Terrorism Risk Insurance Program Reauthorization Act (S 2244) has gathered 16 co-sponsors, including the Chairman (Tim Johnson D-SD) and Ranking Member (Michael Crapo R-ID) of the Banking, Housing and Urban Affairs Committee of the Senate. See http://thomas.loc.gov/cgi-bin/query/C?c113:./temp/~c113alUTIB
The bill is expected to receive a mark up by the committee as early as June this year.
The primary features of the Senate bill include
- Extending the TRIA program for 7 years from 2014 through 2021
- Defining the insurer deductible as the value of an insurer’s direct earned premium during the immediately preceding calendar year, multiplied by 20 percent;
- Gradually reduces the federal share of compensation under the program by 1 percent each year from 85 percent down to 80 percent of that portion of the amount of insured losses that exceeds the applicable insurer deductible required to be paid during the calendar year.
- Setting the program trigger at $1 billion with regard to insured losses occurring in a calendar year as a result of certified terrorism.
- Gradually increasing the insurance marketplace aggregate retention amount by $2 billion each year from $27.5 billion until it reaches $37.5 billion.
Legislation in the House is also in the process of development in consultation with Financial Services Committee Chairman Jeb Hensarling (R-TX), but the content of reauthorization legislation for consideration in the House is less certain.
UWC supports reauthorization of TRIA and is working in concert with the Insurance industry and self insured employers in support of legislation to continue the program.
