Thursday, 27 December 2007
President Bush Extends Terrorism Insurance Bill
Yesterday, President George W. Bush signed a bill to extend the Terrorism Risk Insurance Act (TRIA) for another seven years, reported the Insurance Journal. TRIA provides a federal financial backstop for insurance companies in the event of losses from an act of terrorism.
“This seven-year extension brings unprecedented certainty and stability to the terrorism insurance market and keeps in place an extremely successful and important public/private partnership that helps commercial insurance buyers and the entire economy protect themselves from the financial devastation of a future terrorist attack,” wrote senior vice president of the Property Casualty Insurers Association of America, Joseph Annotti.
Insurance companies are eligible for TRIA if they provide commercial property and casualty insurance coverage. In 2007, the law provides coverage for losses greater than $100 million.
The extended bill also includes some revisions — including ridding of the distinction between domestic and foreign terrorism, and also requires studies to determine how to assess the coverage of nuclear, biological, chemical, and radiological attacks.
“The President’s signature today marks the final step and puts in place the long-term program necessary to help protect our nation from the threat of terrorism,” wrote former Montana governor and president of the American Insurance Association, Marc Racicot.
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