Rep. Mike Capuano (D-MA) and Rep. Peter King (R-NY) today introduced the "Terrorism Risk Insurance Program Reauthorization Act of 2013" (TRIPRA). The legislation extends the Terrorism Risk Insurance Act (TRIA) for ten years. In the aftermath of the 9/11 terrorist attacks, many insurance companies excluded terrorism events from their insurance policies, after sustaining more than $40 billion in losses. As a result, Congress passed TRIA in 2002. The law created a federal backstop to make terrorism insurance available and to protect against terrorism related losses in the event of another attack. The measure has twice been extended and is set to expire in 2014.
TRIA currently provides the following:
Requires companies to offer terrorism coverage to commercial policyholders;
Requires the private insurance industry to cover losses up to $100 million, only after that point the federal government would provide assistance;
Establishes a mechanism for the government to recover funds that are paid out.
"Unfortunately, most of us have always realized that another terrorist attack could happen, destroying lives and disrupting daily activities. After the tragic bombings at the Boston Marathon, we are again witness to the devastation and the sorrow that such horrific acts cause," stated Congressman Capuano, who has introduced TRIA extensions twice since the program's 2002 creation.
"The threat of a terrorist attack is all too real. Supporting a long-term TRIA reauthorization provides needed market stability and ensures economic development in a dangerous world," stated Rep. King.
Since its enactment, TRIA has ensured the availability of affordable terrorism risk insurance in the marketplace and thereby fostered continued urban development and real estate development in the United States. To date, TRIA has cost taxpayers nothing outside of minor administrative costs. This legislation will extend TRIA for 10 years with current co-payments and deductibles for conventional terrorism acts. The following House Members have signed on as original co-sponsors: Representatives Carolyn McCarthy (D-NY), Gwen Moore (D-WI), Gregory Meeks (D-NY), Maxine Waters (D-CA), Jim McGovern (D-MA), Kyrsten Sinema (D-AZ), Joyce Beatty (D-OH), Denny Heck (D-WA), Joe Kennedy (D-MA), Ed Markey (D-MA), Mel Watt (D-NC), Ruben Hinojosa (D-TX), Charlie Rangel (D-NY), Jerry Nadler (D-NY), Bill Keating (D-MA), William Lacy Clay (D-MO), Andre Carson (D-IN), Stephen Lynch (D-MA) and Grace Meng (D-NY)