WASHINGTON (6/19/14)--Rep. Randy Neugebauer (R-Texas) has introduced a bill that would extend the Terrorism Risk Insurance Program for five years while making no programmatic changes for the first year of the extension.
Neugebauer, who chairs the House Financial Services subcommittee on housing and insurance, said the one-year moratorium would give the market time to adjust to planned changes. Also, he said the bill would take off "the training wheels" of the TRIA program--created after the Sept. 11 terrorist attacks to lend stability to the economy--and "transition to a terrorism risk insurance market that is less dependent on a taxpayer-funded backstop."
The House Financial Service Committee has scheduled a Thursday markup session on Neugebauer's TRIA Reform Act of 2014 (H.R. 4871).
Under the bill's provisions, TRIA payments would be initiated by a higher threshold. By 2019, the program would be triggered by an attack--one not caused by a nuclear, chemical, biological or radiological attack--only if damages exceed $500 million. The current threshold is $100 million.
Other provisions include:
Use the resource link to access the bill's language.