Terrorism Risk Insurance Act – Passed by the Senate
The Terrorism Risk Insurance Act (TRIA) that recently expired on December 31, 2014, has just been reinstated yesterday by congress in a 93-4 vote to extend the bill through the year 2020 . TRIA, which was created shortly after the terrorist attacks of 9/11, provides a federal insurance backstop in the event of a major terrorist attack. TRIA’s federal insurance backstop has allowed insurers to sell coverage for terrorist attacks at affordable rates while limiting their overall risk. This reinstated bill calls for a six year extension and increases the amount needed in total losses from the current $100 million to $200 million with no gaps in coverage, and policyholders do not have to negotiate new coverages.