Terrorism Risk Insurance Act renewal bill set for June 3 vote
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The Senate Banking Committee is scheduled to vote June 3 on legislation to renew the Terrorism Risk Insurance Act.
The measure, S. 2244, would reauthorize the federal terrorism backstop, now scheduled to expire on Dec. 31, for seven years.
In addition to the seven-year extension, the Senate bill calls for two major changes to the program.
Under current law, in the event of a terrorist attack, insurers would first pay 20% of the prior year's direct earned premium for covered commercial lines as a deductible. After that deductible, the federal government covers 85% of each insurer's losses until losses total $100 billion, leaving individual insurers to cover the remaining 15%.
The Senate measure would increase insurers' copay after the deductible to 20% from 15%, with the government covering 80% of each insurer's additional losses. The deductible increase would be phased in incrementally over five years.
