WASHINGTON, D.C. (PRWEB) January 13, 2015
Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), issued the following statement in response to the President signing the Terrorism Risk Reauthorization Act of 2015 (H.R. 26) into law.
“A well-functioning private terrorism insurance marketplace has been preserved because Congress and the Administration made TRIA’s reauthorization an immediate priority. The program, which has overwhelming bipartisan support, will continue to protect our nation’s economy against major acts of terrorism. AIA thanks Congressional leadership and the Administration for moving so quickly to reauthorize TRIA.”
H.R. 26, which passed the House on January 7 by a vote of 416 to 5 and the Senate 93 to 4 on January 8, was signed by President Obama yesterday. Under the six-year extension in the bill, starting in 2016, there will be phased-in increases to the program’s trigger (raising it from $100 million to $200 million in annual aggregate insured losses) and the insurer co-share (raising it from 15 percent to 20 percent). In addition, the bill phases in an increase in the aggregate amount of insured terrorism losses required to be borne by the private sector from the current $27.5 billion to $37.5 billion. Any use of taxpayer dollars to fund those losses would be recouped post-event.