News

Congress Passes Terrorism Risk Insurance Act

On Wednesday, the House approved H.R. 26, the Terrorism Risk Insurance Act (TRIA), by a vote of 416-5 vote.  On Thursday, the Senate approved the bill by a vote of 93-4.  The TRIA bill would:
  • Extend the Terrorism Insurance Program for six-years;
  • Gradually increases from $100 million to $200 million the aggregate trigger (i.e. the minimum amount of damages from an attack before any federal assistance could become available) at a rate of $20 million a year beginning in 2016;
  • Raise the federal government’s mandatory recoupment from $27.5 billion to $37.5 billion, increasing by $2 billion each year beginning Jan. 1, 2016;
  • Raise the private industry recoupment total from the current 133 percent of covered losses to 140 percent of covered losses; and
  • Increase the co-share between the private sector and federal government to 80-20 percent — up from the current 85-15 percent.
The bill does not include so-called bifurcation for treating nuclear, biological, chemical and radiological (NBCR) attacks differently from more conventional forms of attack – but authorizes a government study on the matter. For more information, please contact Brian Lenihan at (202) 547-4733 or lenihanb@agc.org.