Important Information Regarding the Terrorism Risk Insurance Act
Accident Fund Holdings strongly encourages Congress to reinstate legislation in 2015
The Terrorism Risk Insurance Act (TRIA) is a U.S. federal law signed by President George W. Bush on Nov. 26, 2002, that created a federal “backstop” for insurance claims related to acts of terrorism.
While Accident Fund Holdings anticipated the bill would receive a long-term extension in 2014, the Senate failed to reauthorize TRIA prior to adjourning for the year. Therefore, the federal backstop will expire on Dec. 31, 2014.
The TRIA program plays an important and appropriate role in encouraging private sector involvement in the terrorism insurance marketplace — thereby protecting and promoting our nation’s finances, security and economic strength.
As an Enterprise, Accident Fund Holdings has been an ardent supporter of the reinstatement of TRIA. The Act has made it possible for American businesses to get the coverage they need while protecting the taxpayer. By maintaining our nation’s economic stability in the face of ongoing terrorist threats, TRIA serves as a vital public-private risk sharing mechanism. TRIA also fosters certainty in the marketplace by ensuring that private terrorism risk insurance coverage remains commercially available at virtually no cost to the taxpayer. Maintaining a workable federal terrorism insurance mechanism is vital for our nation’s economic security. Without adequate coverage, our ability to mitigate further economic fallout in the event of an attack would be greatly impaired.
It is our belief that the American business community needs the certainty that TRIA provides so that it can continue to focus on its primary mission of creating jobs. That is why we have worked diligently with industry and trade partners to encourage Congress to quickly pass TRIA legislation when the 2015 legislative session resumes on Jan. 6, 2015