Multiple news outlets reported today that the Senate Banking Committee will vote on the proposed Terrorism Risk Insurance Program Reauthorization Act (“TRIPRA”) this coming Wednesday. TRIPRA represents the Senate’s attempt at further extending the federal terrorism risk insurance program originally established by the Terrorism Risk Insurance Act of 2002 (“TRIA”) and initially extended to December 31, 2007 by legislation in 2005. Barring passage of another extension during this legislative session, TRIA will expire at year’s end. Reports out of Washington, D.C. indicate that this vote was made possible by a compromise agreement reached over the weekend between Banking Committee Chairman Christopher Dodd, D-Connecticut, and ranking Republican Richard Shelby of Alabama on TRIPRA’s terms.
TRIPRA differs in several ways from the Terrorism Risk Insurance Revision and Extension Act of 2007 (“TRIREA”) passed by the House of Representatives a few weeks ago, as we discussed here. While TRIREA seeks to extend the federal Terrorism Risk Insurance Program through 2017, TRIPRA would only extend the program through 2014. TRIREA would expand the scope of the Program to include coverage for group life insurance while TRIPRA would not.
In an important development, it was reported by several press outlets that TRIPRA’s terms were deemed acceptable by the Bush administration. The administration had previously voiced its displeasure with TRIREA, and had threatened to use a presidential veto unless several provisions of the House Act were amended. Whether or not TRIPRA is passed by the Senate in its current form remains to be seen. Either way, it appears likely that substantial negotiation between the House and Senate will be necessary to reconcile TRIREA and TRIPRA to forge an extension bill acceptable to the President. With TRIA’s year-end extension deadline fast approaching, significant progress must be made quickly to avoid the Program’s expiration.
All of our previous coverage of TRIA-related news can be found here.
We will continue to monitor TRIA-related developments and provide updates at InsureReinsure.com