TRIA EXTENSION UNCERTAIN:

Insurers doing business in urban areas need to examine their business plans to make sure they understand how both the federal Terrorism Risk Insurance Act (TRIA) and unfair discrimination law could affect their business, according to the Urban Insurance Partners Institute (UIPI). “We advise companies to create an ongoing compliance team that reviews policies and endorsements,” said Mike Trier, partner at Lord, Bissell & Brook, a Chicago-based law firm. “Since the reauthorization of TRIA for periods after Dec. 31, 2005, is still uncertain, it is important to prepare now for both a hard and soft landing when TRIA terminates.” UIPI President Suzanne Reade said, “TRIA was meant to be a temporary solution, and we understand that TRIA’s congressional backers are reluctant to extend the program beyond 2007. Companies should make sure that in an effort to limit their long-term exposure, they don’t take any legal missteps in the urban arena.” Many corporations are backing extension of the Terrorism Act. “Insurers and the business community, particularly those in urban areas, have strongly encouraged Congress to extend TRIA while other alternatives to protecting businesses and the economy are examined,” said Donald Griffin, vice president of commercial insurance for the Property Casualty Insurers Association of America.