House Subcommittee Keeps Group Life In TRIA Bill

The subcommittee review of H.R. 2761 took many hours, but most of the debate concerned property-casualty provisions.

The bill would limit the federal share of compensation paid under the program to any one individual under a group life program to $1 million in any year. Under the program, the initial deductibles would be reduced under language in a manager’s amendment to 3.5%.

The travel underwriting provision would limit use of travel destination as a criterion for underwriting to travel to be conducted during the first year in which the policy would be in effect.

The provision also would prohibit practices such as charging extra for insureds who intend to travel to certain destinations, except when the federal government has ruled such travel dangerous because of an invasion, health risks or other significant risks.

The American Council of Life Insurers, Washington, has issued a statement praising the capital markets subcommittee for approving H.R. 2761.

“The need for this legislation is clear,” ACLI President Frank Keating says. “Group life insurance is a critical employee benefit. Adding group life insurance to the TRIA program will help ensure that group life insurers will have the capacity to meet their commitments in the event of a catastrophic terrorist attack.”