U.S. Congress Fails to Renew TRIA – for Now

Cozen O'Connor
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The U.S. Senate wrapped up the 113th Congress and left Washington without holding a vote to renew the Terrorism Risk Insurance Act (TRIA).  In the closing weeks of the session, Senator Chuck Schumer (D-N.Y.) had negotiated an agreement with Chairman of the U.S. House of Representatives Committee on Financial Services Jeb Hensarling (R-Texas) that would have reauthorized TRIA for six years and raised the trigger for government reimbursement from $100 million to $200 million and increased companies’ co-payments to 20 percent from 15 percent.

The House approved the measure last week before wrapping up its session by a vote of 417-7. However, consideration in Senate was blocked by the retiring Senator Tom Coburn (R-Okla.). Senator Coburn objected to provisions in the bill that would require insurance agents to register into a national, nonprofit clearinghouse, believing the provisions were a federal infringement on authority that has traditionally been held by individual states.

Senator Schumer and other supporters, while expressing disappointment in the Senate’s failure to approve the current bill, remain hopeful that a new bill based on the agreement with Chairman Hensarling can be approved by both bodies when the new Congress meets in early January. This view was echoed Senator John Thune (R-S.D.), chairman of the Republican Conference who said both parties would try to revive TRIA next year.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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