The National Association of Insurance Commissioners (NAIC) has passed a resolution supporting the reauthorisation of the Terrorism Risk Insurance Act (TRIA) that is set to expire in December 2014.
The NAIC passed the resolution during a meeting of the government relations leadership council during the summer national meeting in Indianapolis.
Adam Hamm, NAIC president-elect and North Dakota insurance commissioner, described TRIA as a “critical piece of legislation” and urged members of Congress to reauthorise the act.
“In addition to providing essential coverage for commercial policyholders, this federal backstop remains an invaluable part of the industry’s ability to preserve its financial protection and maintain risk management,” added Hamm.
TRIA was signed into law in November 2002 in the aftermath of the 9/11 attacks to provide economic stability by making terrorism coverage available to businesses.
In 2007, NAIC members testified before Congress on the need to extend the programme. Subsequently Congress reauthorised the programme in December of that year.
