WASHINGTON (1/8/15)--A six-year reauthorization of the Terrorism Risk Insurance Act (TRIA) was approved by the House Wednesday by a vote of 416-5.
The House passed the same bill last month 417-7, but the Senate did not take up the bill, and the act expired Dec. 31.
TRIA was created in the aftermath of the Sept. 11, 2001, attacks, and it allows the government to repay business costs after terrorist attacks. The newly reauthorized act raises the threshold for government repayment to $200 million. It was originally $100 million.
Other reforms included in the bill ensures taxpayers will be compensated for the use of their dollars in the event they are called upon under TRIA to backstop losses resulting from a terrorist act.
"This reform bill doubles the taxpayer protection trigger, decreases federal share of losses, and encourages greater private sector participation in the terrorism risk insurance market," said Rep. Randy Neugebauer (R-Texas), the sponsor of the bill, in a statement.
The bill also features clarification of a Dodd-Frank "end-user" provision, which would exempt certain nonfinancial institutions from regulations that apply to many big banks.
According to a report in The Hill, Senate leadership is working to hold a vote on TRIA today, but no timing has officially been put in place.