Magazine article Mortgage Banking

Senate Banking Committee Passes Seven-Year Terrorism-Insurance Extension

Magazine article Mortgage Banking

Senate Banking Committee Passes Seven-Year Terrorism-Insurance Extension

Article excerpt

Following passage by the full House of Representatives, the Senate Banking, Housing and Urban Affairs Committee in October approved a bill to extend the current federal terrorism-insurance backstop.

Passed by a vote of 20-1, S. 2285, the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA) would, among other things, extend the terrorism-insurance program for seven years through Dec. 31, 2014.

TRIPRA differs from the House bill, H.R. 2761, The Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA), which would extend the original Terrorism Risk Insurance Act (TRIA) for 15 years.

As Mortgage Banking has reported, the Terrorism Risk Insurance Extension Act of 2005 (TRIEA), signed by President Bush at the end of 2005, provides insurers with a federal backstop for damage done as a result of acts of foreign terrorism.

Just as with the original Terrorism Risk Insurance Act, which passed in 2002 and expired at the end of 2005, TRIEA is designed to keep a temporary federal terrorism-insurance mechanism in place through the end of 2007 until a permanent solution is crafted (see Mortgage Banking, November 2007, p. 110).

"I am committed to finding a solution that will address the long-term security needs of our people and our economy in order to ensure that our nation is best prepared to deal with future terrorist threats," said Senate Banking Committee Chairman Christopher Dodd (D-Connecticut). …

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