Terrorism Risk Insurance
On November 16, 2007, the Senate passed the final version of the Terrorism Risk Insurance Revision and Extension Act (TRIREA), H.R. 2761, and the House passed it on December 18. The President then signed it into law on December 26. This bill reauthorizes the Terrorism Risk Insurance Act (TRIA) for 7 years – through 2014. TRIA provides a federal backstop to the insurance industry by providing compensation for a portion of insured losses resulting from acts certified by the government as acts of terrorism.
In 2002, TRIA program was enacted in an attempt to stabilize the economy that was badly disrupted by the events of 9/11 and spur commercial development, as well as to prevent an industry-wide catastrophe in the event of another terrorist attack.
This legislation is rooted in the belief that it is in the best interest of our country that the federal government coordinate with insurers to provide financial compensation to insured parties for losses from acts of terrorism – contributing to stabilization of the United States economy at a time of national crisis.
This legislation is part of the broader campaign against terrorism. Since terrorist attacks are made against the country and not an individual city or state, the risk should be dealt with on a national level.
TRIA is broadly supported by insurance companies, insurance agents and brokers, policyholders, commercial developers, and construction companies.