Terrorism Risk Insurance Extension Advances
Washington, DC – Congresswoman Carolyn B. Maloney (D-Manhattan, Queens) today applauded the House Financial Services Capital Markets Subcommittee for passing the Terrorism Risk Insurance Revision and Extension Act (H.R. 2761), legislation that would extend the original Terrorism Risk Insurance Act (TRIA). Congresswoman Maloney, Chair of the House Financial Services Financial Institutions Subcommittee, is an original co-sponsor of H.R. 2761 and a strong advocate for a long-term TRIA extension.
“Among the many issues urgently confronting Congress this year, few are as important to New York’s economy as the renewal of federal support for terrorism risk insurance,” said Maloney. “A long-term TRIA extension is critical to the full redevelopment of lower Manhattan.”
TRIA is critical to New York’s economic development because it insures losses in the event of future acts of terrorism. TRIA was first passed in the wake of the 9/11 terrorist attacks as a temporary three-year program, and then later extended through 2007. Without another extension, TRIA will expire at the end of this year, leaving many risk insurance policyholders unable to obtain coverage. Congresswoman Maloney has advocated for a longer extension that would provide greater predictability to the insurance market and aid the lower Manhattan redevelopment effort.
“Short TRIA extensions throw the markets into disarray every year and prevent long-term planning. A long-term extension gives us enough time to issue the bonds necessary to finance the Freedom Tower and help rebuild lower Manhattan. I applaud Chairmen Frank [D-MA] and Kanjorski [D-PA] for helping to move forward legislation that is so important to New Yorkers,” Maloney continued.
TRIA requires property and casualty insurers to make terrorism insurance available and provides a government backstop covering 90 percent of insured losses, up to $100 billion each year, after insurer deductibles.
Earlier this year, at Congresswoman Maloney’s urging, the House Subcommittee on Capital Markets held a hearing in New York City to discuss the importance of a TRIA extension.
H.R. 2761 is slated for a full Financial Services Committee mark-up next week.
March 5, 2007: House Holds NYC Hearing on Extension of Terrorism Risk Insurance Act http://maloney.house.gov/index.php?option=com_content&task=view&id=1299&Itemid=61
December 17, 2005: Terrorism Risk Insurance Extension Gains Final Passage
June 30, 2005: Bush Administration Claims Terrorism Risk Insurance is No Longer Necessary
June 17, 2002 : Maloney, Corzine Call for Swift Passage of Terror Reinsurance Legislation