WASHINGTON, Jan. 14, 2015 — The American Bar Association on Wednesday applauded President Obama for signing a six-year reauthorization of the Terrorism Risk Insurance Act (TRIA), which authorizes the federal government to pay insured property losses after catastrophic terrorist attacks exceeding $200 million in damage.
The ABA, along with businesses, professional sports leagues and the tourism industry, urged Congress to support reauthorization of TRIA. Last week, the House voted 416-5 to renew the legislation and the Senate followed with a 93-4 vote in favor.
“The passage of the Terrorism Risk Insurance Act ensures that millions of Americans will be able to get needed insurance coverage in the event of catastrophic losses due to terrorist attacks,” ABA President William C. Hubbard said. “It’s good for businesses and the public.”
In a November 13, 2014, letter from the ABA to House Speaker John Boehner, the ABA noted that the association’s Tort Trial & Insurance Practice Section has been analyzing this issue since the inception of the TRIA program and recognizes it as enormously successful in helping protect property owners from the risk of terror attacks. The ABA’s Section of Real Property, Trust & Estate Law also offered comments in favor of a long-term extension of the program based on its success since 2002. In 2007, the ABA House of Delegates adopted policy based on the sections’ recommendations that “urges Congress and the administration to protect property owners, consumers and the U.S. economy by partnering with the insurance industry to promote the availability of terrorism risk insurance through legislation that continues support for market mechanisms with federal government insurance backstop protection.”
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