MBA Applauds House Committee`s Approval of an Extension to the Terrorism Insurance Program

Terrorism risk insurance is an essential part of the nation`s economic preparedness against terrorism. To that end, the Mortgage Bankers Association (MBA) applauds the House Financial Services Committee as they favorably report out H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act of 2007. This legislation would extend the Terrorism Insurance Program of the Department of the Treasury by 15 years and is a key step toward making long-term terrorism insurance available and affordable.

"The extension of the Terrorism Insurance Program is crucial to maintaining the smooth operation of the commercial real estate finance market," said Kieran P. Quinn, CMB, MBA`s Chairman Elect. "We are pleased that the House Financial Services Committee has approved H.R. 2761 and look forward to continuing our work with Congress and the Administration on this very important issue." 

MBA and the Coalition to Insure Against Terrorism (CIAT), of which MBA is a member, support the bill that would:

Extend the Terrorism Risk Insurance Act, originally passed in 2002, for 15 years with current co-payments and deductibles for conventional terrorism acts. TRIA is set to expire in December;
Expand TRIA`s "make available" requirement to include nuclear, biological, chemical and radioactive (NBCR) coverage that would go into effect in 2009;
Change TRIA`s definition of terrorism to include acts of domestic terrorism;
Set the program trigger at $5 million which is down from the current $100 million;
Add group life insurance to the lines of insurance for which terrorism coverage must be made available;
Decrease deductibles and triggers for areas previously impacted by a significant terrorist attack; and,
Continue to require studies of the development of a private market for terrorism risk insurance.

Angela C. Waugaman  (202) 557-2829  awaugaman@mortgagebankers.org