The US Senate today passed legislation to extend the Terrorism Risk Insurance Act by an overwhelming bi-partisan vote of 93 -4 with 3 not voting. The bill, S 2244, may be found at http://www.gpo.gov/fdsys/pkg/BILLS-113s2244rs/pdf/BILLS-113s2244rs.pdf. The Terrorism Risk Insurance Program Reauthorization Act of 2014 amends the Terrorism Risk Insurance Act of 2002 to extend the Terrorism Insurance Program through December 31, 2021.
It would decrease the federal share of the compensation for insured losses of an insurer during each Program year after enactment of this Act by 1% until that share equals 80% of that portion of the amount of such insured losses that exceeds the applicable insurer deductible for such Program year.
It also would increase the insurance marketplace aggregate retention amount under such Program (currently $27.5 billion) by $2 billion per calendar year after enactment of this Act until such amount equals $37.5 billion.
Passage of the Senate now puts pressure on the House to take action on the legislation reported by the Financial Services Committee, HR 4871, or take up the Senate passed bill, or negotiate a version with the Senate.
HR 4871 as reported from the Financial Services Committee may be accessed at http://www.gpo.gov/fdsys/pkg/BILLS-113hr4871rh/pdf/BILLS-113hr4871rh.pdf
Attached is a comparison provided, courtesy of NCCI.
