Congress close to compromise on terrorism insurance backstop
Reprints
A compromise measure that would extend the federal government's terrorism insurance backstop program beyond its slated Dec. 31 sunset could be unveiled as early as today.
Reauthorization of the program has been the top federal legislative priority for the Risk & Insurance Management Society Inc. as well as property/casualty insurer and producer groups.
According to sources familiar with negotiations between House and Senate representatives, the measure would call for extending the program for six years and raising the minimum damage required to trigger the program to $200 million from the current $100 million. The measure may also include a provision that would create a National Association of Registered Agents and Brokers to streamline interstate producer licensing.
The program, which was created by the Terrorism Risk Insurance Act of 2002, was previously extended in 2005 and 2007. The Senate approved a bill earlier this year that would extend the program for seven years, the House Financial Services Committee approved its own bill that would extend the program for five years and gradually increase the trigger to $500 million. Both bills would require insurers to shoulder a greater share of losses stemming from catastrophic terrorist attacks. Both also contained NARAB provisions, although the Senate bill would limit NARAB to two years.
Read Next
-
Insurance groups hope Republican-controlled Congress will amend Dodd-Frank
With Republican control of the next Congress, the insurance industry gains confidence that at least both chambers will consider pivotal changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Related Stories
-
Insurance groups hope Republican-controlled Congress will amend Dodd-Frank
-
Californians reject med mal proposition; AIA urges TRIA action
