NAIC and APCIA Urge Congress To Reauthorize TRIP
October 17, 2019
On behalf of the National Association of Insurance Commissioners (NAIC), Chlora Lindley-Myers, director of the Missouri Department of Commerce and Insurance, testified on October 16, 2019, before Congress at a hearing titled "Protecting America: The Reauthorization of the Terrorism Risk Insurance Program (TRIP)."
Her testimony outlined state insurance regulators' support of TRIP, as she urged Congress to pass a long-term reauthorization prior to the December 31, 2020, expiration.
"State insurance regulators urge Congressional action to reauthorize TRIA to ensure a sustained and stable terrorism risk insurance marketplace, that provides American businesses with the essential coverage needed to successfully operate in today's uncertain global environment," Ms. Lindley-Myers testified.
The Terrorism Risk Insurance Act (TRIA) is a federal law enacted in 2002 that provides a federal "backstop" for insurance claims related to acts of terrorism. Since then, it has been extended 3 times, most recently in 2015. The NAIC supports a reauthorization of 7–10 years.
"TRIP provides insurers with the certainty they need to offer coverage for acts of terrorism," added Ms. Lindley-Myers. "Without TRIP, we are concerned that terrorism risk insurance would become unavailable and unaffordable and we could revisit some of the same market disruptions and economic uncertainties the nation faced in the aftermath of the September 11 attacks."
David Sampson, president and CEO of the American Property Casualty Insurance Association (APCIA), said in a statement, "TRIA is critical to the nation's economic security. It is a fiscally responsible program and critical to continued economic and commercial growth. Failure to reauthorize the program could have significant economic implications on taxpayers."
He continued, "We applaud [House Financial Services Committee] Chairwoman [Maxine] Waters for introducing a bipartisan bill [H.R. 4634] that would reauthorize TRIA for ten years in its current form. The time for Congress to act is now to avoid uncertainty and disruptions and confusion in the marketplace, similar to what we experienced after Congress failed to act in 2014."
Joe Carter, acting president and CEO of United Educators, a risk retention group, testified on behalf of the American Property Casualty Insurance Association.
October 17, 2019