An extension to the Terrorism Risk Insurance Act (TRIA) has just been passed by the U.S. House of Representatives, with a majority vote of 416 – 5.
The legislation was allowed to lapse at the end of 2014, and has continued to be a prevalent concern for many corporations, creating turmoil in the insurance industry over the past few weeks.
The newly proposed parameters of the TRIA program mirror that of the bill passed by the House in December 2014, before being shut down by Sen. Tom Coburn (R – OK), and allowed to expire.
What’s in the House Bill
The voted upon bill incrementally increases the qualifying trigger of insured events to a minimum threshold of $200 million in any one program year, up from $100 million. It also increases the co-share requirement with the private sector from 15% to 20%, for any one insured loss which satisfies the definition of a certified terrorism act. The House’s bill would extend the TRIA program for a further 6 years, to expire in 2020.
Included within the new provisions to the TRIA extension, are riders to the Dodd-Frank Act and legislation for the creation of NARAB II. NARAB II moves to streamline the non-resident producer licensing process across all states, yet maintain ultimate regulatory authority at the state level. These imposed changes previously fueled protests in the Senate which led to the lack of a resolution prior to year end.
Responsibility for the bill now falls to the Senate’s, and is a high priority for consideration on the floor. While it is expected to be brought a vote within the next several days, there is no certainty that it will be accepted in its current form without modifications.