ISU MEDIA EXPERT AVAILABLE TO DISCUSS TRIA EXTENSION
HOUSE PASSES TRIA EXTENSION BILL
WASHINGTON - The House of Representatives has approved legislation that would extend for at least two years the federal backstop for insurers facing losses from future catastrophic terrorist attacks.
The bill, which the House passed this afternoon on a vote of 371-49, would create so-called "silos" for different lines of coverage and subject them to differing deductibles before individual insurers would tap the backstop created by the Terrorism Risk Insurance Act of 2002.
The measure would also establish a broad-based commission to make recommendations on what role, if any, the government should play in guaranteeing terrorism insurance, and it would extend the current protections granted property/casualty insurers to group life insurers as well, among other changes.
The Housešs action comes less than a month before the current backstop is slated to expire on Dec. 31.
Differences between the House bill and an extension bill passed by the Senate last month mean that conferees from both chambers will have to meet to iron out those differences. The Senate bill, for example, does not cover group life and eliminates coverage for some other lines currently covered, such as commercial automobile. The Senate bill also does not use the silo approach.
Source: Business Insurance
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Indiana State University professor William Warfel is available to talk to the media about the TRIA extension and how this could impact the industry, as well as what part the government should play in the process.
Warfel has written for professional journals on the topic, including an article in Risk Management entitled "Amending TRIA" and another in the CPCU eJOURNAL entitled "Terrorism and Disruption in Insurance Markets: The Need for a Permanent Solution."
For more information about Dr. Warfel, visit his faculty information page on the Indiana State University Web site at:
http://www.indstate.edu/schbus/faculty/wwarfel.htm or contact him directly by phone only at (812) 237-2122.
MEDIA CONTACT: Maria Greninger, associate director, Communications & Marketing, Indiana State University, (812) 237-4357 or 237-7972 (Tuesdays), m-greninger@indstate.edu
ISU Communications and Marketing: (812) 237-3773 or http://www.indstate.edu/news
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