Several leading U.S. House Democrats are sponsoring legislation to extend the Terrorism Risk Insurance Act for 3 years and specifically cover group life.[@@]
The legislation, H.R. 4772, was introduced by Rep. Mike Capuano, D-Mass., and is co-sponsored by Reps. Barney Frank, D-Mass., and Paul Kanjorski, D-Pa.
All are senior members of the House Financial Services Committee.
Their bill differs markedly from H.R. 4634, a bill that was introduced last month by several leading Republicans. The Republican sponsors of H.R. 4634 include Reps. Richard Baker, R-La., Sue Kelly, R-N.Y., Eric Cantor, R-Va., and Pete Sessions, R-Texas.
- H.R. 4634 would extend TRIA for 2 years. The new bill, H.R. 4772, would extend TRIA for 3 years.
- H.R. 4634 would increase the insurance company deductible from 15% in 2005 and 2006 to 20% in 2007, when TRIA would expire. H.R. 4772 would keep the company deductible at 15% throughout the entire program, which would expire in 2008.
- H.R. 4634 would increase the industrywide retention from $15 billion in 2005 to $17.5 billion in 2006 and to $20 billion in 2007. H.R. 4772 would maintain a $15 billion industry retention throughout the life of the program.
- H.R. 4634 would call on the Treasury Department to decide whether to include group life in the TRIA program. H.R. 4772 would affirmatively include group life.
- H.R. 4634 calls on the Treasury Department to conduct a study of TRIA and submit a report to Congress on market-based alternatives to government reinsurance. H.R. 4772 would assign the study task to the U.S. General Accounting Office.