Five insurance associations have called for congressional action to renew the federal government’s terrorism reinsurance program, according to the Independent Insurance Agents and Brokers of America.
In letters to House Financial Services Chairman Michael Oxley (R-Ohio) and Senate Banking Committee Chairman Richard Shelby (R-Ala.), the industry groups urged for extension of the current Terrorism Risk Insurance Act (TRIA) or passage of a modified program.
TRIA is set to expire December 31, 2005. IIABA said it is part of an industry-wide consensus that Congress must act before that deadline in order to provide policyholders and insurers the certainty and security they need as they contemplate long-reaching business transactions. IIABA and the other associations have the support of state insurance regulators, who also are urging Congress to take action.
Since its inception, TRIA has made terrorism insurance available to all types of businesses, including those in areas considered at high risk for terrorist attacks. The program, however, does not extend to personal insurance coverages like auto and homeowners insurance.
Most insureds have opted not to add a terrorism endorsement to their policies, surveys have shown.
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