January 23, 2015

Congress Reauthorizes Terrorism Insurance Law

The CT Mirror reports that Congress has approved a bill to reinstate the federal Terrorism Risk Insurance Act (TRIA). The president is expected to sign the bill into law. TRIA, which expired on December 31, 2014, created a temporary program under which the federal government shares the risk of loss from foreign terrorist attacks with the insurance industry. The reauthorization bill extends the federal backstop for an additional six years. Without the bill, insurers were “unsure if they could continue to offer protection against terrorist attacks without hiking premiums, perhaps to a point where coverage was unaffordable.”

For more details about the reauthorization, read an A.M. Best article at: