House Introduces Terrorism Insurance Renewal Bill

WASHINGTON, DC-The Terrorism Risk Insurance Act of 2002–a legislative response to the Sept. 11 terror attacks that put a federal backstop measure in place, insuring that the government covers payouts exceeding $100 billion of insurers’ liability in the event of another such attack–is scheduled to expire at the end of this year. The US House of Representatives has just introduced a bill in hopes of renewing the act through 2007.

Five Democratic congresspersons introduce HR 1153, which would also extend TRIA’s vital “make available” provision–a stipulation that obliges insurance companies to make terrorism insurance available on the same terms as property and casualty insurance–for an additional two years; the provision had been scheduled to expire at the end of August 2004 until the US Department of the Treasury stepped in and extended the provision’s expiration to coincide with that of TRIA. HR 1153 comes on the heels of the US Senate’s introduction of a similar bill that calls for TRIA’s extension, S. 467.