Terrorism Insurance Group Pushes Senate for Extension

WASHINGTON, DC-The Dec. 31, 2005 expiration date for the Terrorism Risk Insurance Act of 2002 is fast approaching, and the Coalition to Insure Against Terrorism has taken yet another step to encourage Congress to pass legislation that would extend the act. TRIA provides for a federal backstop measure insuring that the government covers payouts exceeding $100 billion of insurers’ liability in the event of another terrorist attack.

CIAT just sent a letter to Sen. Richard Shelby, chairman of the Senate Banking Committee, encouraging the senator and his colleagues to expedite the passage of the Terrorism Risk Insurance Extension Act of 2005. The proposed legislation would postpone TRIA’s expiration to the end of 2007.

“S 467 would extend the current TRIA program for a short period of time while creating a group of insurance and risk-management experts to work with the Presidential Working Group on Financial Markets to develop a longer-term solution,” CIAT writes in the letter. CIAT is an organization of business insurance policyholders in industries ranging from real estate to entertainment.