Terrorism Risk Insurance Extension Bill Introduced in House
After months of debate and calls for action, a bill that would extend the current federal terrorism-insurance backstop has been introduced in the House.
Introduced in June by House Financial Services Committee Chairman Barney Frank and Rep. Mike Capuano (both D-Massachusetts), H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA) would extend the original Terrorism Risk Insurance Act (TRIA) for 10 years and is designed to spur the development of a private market for terrorism-risk insurance.
"We need to keep in perspective that this bill is necessary for economic development and to protect property owners, building tenants, developers and people who work or live in high-risk areas," said Frank. "We have made significant improvements in this legislation, and we believe we have struck the right balance in providing assurances for businesses and workers in urban areas and encouraging the creation of a private market."
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 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, January 2006, p. …