Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Life Insurance

President Signs TRIA Etension

Your article was successfully shared with the contacts you provided.

President George W. Bush Thursday afternoon signed without comment a 2-year extension of the Terrorism Risk Insurance Act.

The bill was virtually identical to an austere version of a TRIA extension passed by the Senate the week before Thanksgiving.

Senate and House negotiators last week drafted a final bill of the TRIA extension last Friday afternoon. It was passed by the Senate Friday night and by the House Saturday evening.

The legislation will scale back the scope of TRIA’s coverage.

Group life was not included in the bill, whose aim is to protect insurers from catastrophic losses in the event of a severe terrorist attack. Under the final version, commercial auto, burglary-theft, surety, professional liability and farm owners multiple peril will no longer be covered. The negotiators did agree to include general liability, which had been left out of the original Senate bill.

Under the revised TRIA, the industry’s retention level will rise from the current 15% to 17.5% next year and 20% in 2007. The bill will also raise the program trigger from an event of $5 million in insured losses to $50 million in April and to $100 million in 2007.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.