On Wednesday, December 10, the House of Representatives, in a vote of 414/7, passed legislation to reauthorize the Terrorism Risk Insurance Program Reauthorization Act of 2014, (TRIPRA) for a further six years. While the overwhelming House vote in favor of this important legislation signals progress, obstacles are still in place which could thwart the final passage of the bill.
Terms of the TRIPRA program extension have been agreed, as detailed in our earlier TRIPRA Alert, dated December 5 th, 2015. However, continued disagreement over extraneous provisions added to the legislation is continuing to threaten to derail the process.
In an effort to amend certain provisions of Dodd-Frank reforms, Republican leadership has included a section in the legislation passed today that would exempt non-financial derivative end-users, such as manufacturers, energy companies and agricultural firms, from posting collateral when they are trading derivatives. Certain Democratic Senators, however, strongly opposes such changes. The White House also has expressed disapproval of this move, though has not yet threatened a veto.
National Association of Registered Agents and Brokers
The legislation also included an amendment to create a non-profit board, the National Association of Registered Agents and Brokers (NARAB), for insurance agents and brokers to obtain approval to operate on a multistate basis. This provision was in the original Senate bill.
The bill passed yesterday by the House will now go to the Senate for a vote, which is anticipated by Friday. The House is expected to adjourn by the 12th, which leaves little time for further debate.
It is yet to be determined whether Senate Democrats, led by Senator Elizabeth Warren (MA), in opposition to the Republican amendment, will engender the support necessary to strip the “end user” provision from the legislation. However, if successful the bill would be sent back to the House for further consideration.
There is speculation that if that occurs the result would be that the House would pass a short-term extension of the current program. That would require the House to come back in session.
We will continue to monitor these developments.