Bills
| 3.23.22

Extending Terrorism Insurance for Another Seven Years (S. 2244)

Do you support or oppose this bill?

What is S. 2244?

(Updated July 19, 2017)

This bill reauthorizes the Terrorism Risk Insurance Act (TRIA) through December 31st, 2021. TRIA addresses insurance claims stemming from acts of terrorism. Following the 9/11 terrorist attacks, many reinsurers left the terrorism coverage market. This, in turn, caused primary insurers to omit terrorism coverage from their offerings, too. In 2002, the Feds stepped in and played the role of reinsurers, providing a financial backstop in the case of a large-scale terrorist attack. TRIA was extended in 2007, and is currently set to expire on December 31st, 2014. Losses from the terrorist act in question must exceed $100 million for the Act to kick in. The extension would also change the coinsurance requirement from 15% to 20% and raise the amount that businesses could recoup from $27.5 million to $37.5 million. 

Argument in favor

Promotes economic growth and provides certainty for commercial property development while protecting the taxpayer.

Argument opposed

The Feds need to get out of the terrorism insurance industry and leave it to the private sector to deal with.

Impact

The Act allows businesses to obtain terrorism insurance when it might otherwise be too costly to do so.

Cost of S. 2244

A CBO cost is currently unavailable.

Additional Info

Media:




Of Note:

The House is considering three separate TRIA extension bills of its own, one of which would extend TRIA for five years (as opposed to the Senate's seven) and two of which would extend the Act for another decade. An overview of these bills can be found here.