WASHINGTON, D.C. – Today, the Senate Banking Committee unanimously passed bipartisan legislation led by U.S. Senators Thom Tillis (R-NC) and Tina Smith (D-MN), members of the Senate Banking Committee, that would extend the Terrorism Risk Insurance Program for seven years. Entities like the 2020 RNC Convention in Charlotte and DNC Convention, NASCAR, the NFL, and the NHL all require Terrorism Risk Insurance for their facilities.
The Terrorism Risk Insurance Program was established in response to the scarcity of affordable insurance coverage for terrorism risk in the wake of the attacks on September 11, 2001. Since then, the program has improved the availability and affordability of terrorism risk insurance coverage in the marketplace through a public/private partnership that allows the federal government and the insurance industry to share losses in the event of a major terrorist attack. The Terrorism Risk Insurance Act (TRIA), which was enacted by Congress in November 2002, ensures that adequate resources are available for businesses to recover and rebuild if they are the victims of a terrorist attack. Under TRIA, all property and casualty insurers in the U.S. are required to make terrorism coverage available.
“I want to thank Chairman Crapo and the Senate Banking Committee for making reauthorization of the Terrorism Risk Insurance Program a priority,” said Senator Tillis. “This important program, created in the wake of the 9/11 attacks at no cost to taxpayers, protects North Carolina’s economy and provides peace of mind to the private sector by providing insurance protections.”
“Thank you to my colleagues on the Senate Banking Committee for understanding that access to affordable insurance for terrorism-related risks is critical for American businesses to be able to grow and create jobs,” said Senator Smith. “The Terrorism Risk Insurance Program needs to be extended, and unanimously passing it out of Committee with bipartisan support shows we’re all committed to doing that.”
The legislation is co-sponsored by Senators Martha McSally (R-AZ), Bob Menendez (D-NJ), David Perdue (R-GA), Chris Van Hollen (D-MD), Kevin Cramer (R-ND), Catherine Cortez-Masto (D-NV), Jerry Moran (R-KS), Kyrsten Sinema (D-AZ), Mike Rounds (R-SD), Brian Schatz (D-HI), Tim Scott (R-SC), Chuck Schumer (D-NY), Mike Crapo (R-ID), and Sherrod Brown (D-OH).
Specifically, the Terrorism Risk Insurance Program Reauthorization Act of 2019:
- Reauthorizes the Terrorism Risk Insurance Program for seven years, through December 31, 2027, and preserves the taxpayer reforms included in the Terrorism Risk Insurance Program Reauthorization Act of 2015;
- Directs the Treasury Department in its biennial report on the Terrorism Risk Insurance Program and its effectiveness to include an evaluation of the availability and affordability of terrorism risk insurance, including specifically for places of worship; and
- Directs the Government Accountability Office to analyze and address, and report on, the vulnerabilities and potential costs of cyber terrorism, adequacy of coverage under the Program, and to make recommendations for future legislative changes to address evolving cyber terrorism risks.