WASHINGTON (6/4/14)--The Senate Banking Committee Tuesday voted 22-0 to approve the Terrorism Risk Insurance Program Reauthorization Act of 2014 (S. 2244), which would extend the program--established in 2002 under the Terrorism Insurance Act--by seven years. The new termination date would be Dec. 31, 2021.
TRIA requires property and casualty insurers to offer coverage for foreign acts of terrorism on U.S. soil and provides a federal backstop for that coverage. It was scheduled to expire at the end of this year.
The program was created in the aftermath of the Sept. 11 terrorist attacks when, after suffering steep losses, insurance companies ceased terrorism coverage as part of their commercial property policies. The program has since been reauthorized by Congress twice.
Senate Banking Committee Chairman Tim Johnson (D-S.D.) said of his panel's vote, "This seven-year extension of TRIA will continue to help promote economic growth and provide certainty for commercial property development and job creation across the country while protecting the taxpayer. With such a substantial bipartisan vote out of the Banking Committee, I thank my colleagues on both sides of the aisle and plan to continue working with them to move the bill through the Senate in a timely manner."
There is support for a similar measure in the House. The Terrorism Risk Insurance Program Reauthorization Act (H.R. 2146), with 70 co-sponsors, was referred to the House Financial Services Committee in May 2013 and would extend TRIA coverage until Dec. 31, 2024.
If separate extension bills are passed by the full House and Senate, any differences--such as the extension date--would be worked out by conference committee prior to being sent to the president to be signed into law.