The Terrorism Risk Insurance Program ReauthorizationAct of 2019 passed rapidly through the U.S. Senate's Banking,Housing, and Urban Affairs Committee, making its way quickly to thefloor of the Senate. If its speed through this part of thelegislative process is any indication, Congress may pass the billbefore the holidays.

The original Terrorism Risk Insurance Act of 2002 (TRIA),which passed after the 9/11 attacks, creates a federal backstop forinsurance claims that arise out of such acts. It is currently setto expire in December 2020. The bill now before Congress wouldextend TRIA to 2027.

The Senate committee approved the bill on Wednesday, just twodays after it was passed by the U.S. House. Insurance industryleadership moved quickly to express their approval.

"NAMIC commends the leadership and bipartisanship of the SenateBanking Committee for taking up and passing S.2877, criticallegislation that will reauthorize the Terrorism Risk Insurance Act,thereby safeguarding our country's national economic security fromthe threat of a catastrophic terrorist attack," Jimi Grande, seniorvice president of government affairs for the National Association ofMutual Insurance Companies, said in a press release. "Withpassage of TRIA reauthorization legislation out of the House onMonday, today's unanimous passage of an identical bill out of theSenate Banking Committee demonstrates that there is little daylightbetween the two chambers or between the two sides of theaisle."

The NationalAssociation of Professional Insurance Agents (PIA National)also commended the U.S. Senate Banking, Housing, and Urban AffairsCommittee for passing legislation to reauthorize the currentiteration of TRIA for seven more years. "PIA made it a key prioritythis year to have the TRIA program reauthorized well before itsscheduled expiration of December 2020," said Jon Gentile, PIANational vice president of government relations, in a statement."We are pleased our advocacy has paid off with the Senate BankingCommittee acting in a timely manner, the same week a companionmeasure passed the U.S. House. This bill makes minimal changes tothe program and provides a long-term reauthorization."

Nat Wienecke, senior vice president for federal governmentrelations at the American Property Casualty Insurance Association(APCIA), issued the following statement applauding the SenateBanking Committee: "APCIA applauds the Senate Banking Committee forswiftly passing legislation to extend the Terrorism Risk InsuranceAct (TRIA) for seven years. The broad bipartisan support in theHouse and the Senate Banking Committee sends a clear message of thecritical role TRIA plays in stabilizing the economy."

Industry groups ultimately urged Congress to come together andcommit to passing the TRIA extension before the end of 2019.

From: PropertyCasualty360