MBA Pushes Senate on Terrorism Insurance

WASHINGTON, DC-The Mortgage Bankers Association of America has called on the senate again to pass the Terrorism Risk Insurance Act of 2002, legislation that would create a federal reinsurance backstop, thereby capping property insurers’ pay-out responsibilities in the event of terrorism related damage. The bill, S.2600, finally made it on the Senate calendar for discussion May 13.

The US House of Representatives passed similar legislation late last year, so the burden is on the Senate. Without the institution of such a law, terrorism insurance will remain unavailable or too expensive for businesses.