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Tuesday, April 20th, 2021

Senate banking Committee advances bill to extend terrorism risk insurance

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The Senate Banking Committee advanced legislation to extend the Terrorism Risk Insurance Program for seven years.

The Terrorism Risk Insurance Program was established following the terrorist attacks on September 11, 2001. The program – created after Congress passed the Terrorism Risk Insurance Act (TRIA) in 2002 — features a public/private partnership that allows the federal government and the insurance industry to share losses in the event of a major terrorist attack. It ensures that adequate resources are available for businesses to recover and rebuild if they are the victims of such an attack.

“I want to thank Chairman Crapo and the Senate Banking Committee for making reauthorization of the Terrorism Risk Insurance Program a priority,” Sen. Thom Tillis (R-NC), one of the bill’s sponsors, said. “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.”

The 2020 RNC Convention and DNC Convention, along with NASCAR, the NFL, and the NHL, are among the entities that require terrorism risk insurance for their facilities.

“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,” Sen. Tina Smith (D-MN), the bill’s cosponsor, said. “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.”

Specifically, the Terrorism Risk Insurance Program Reauthorization Act of 2019 reauthorizes the Terrorism Risk Insurance Program for seven years, through December 31, 2027. It also directs the Treasury Department to evaluate the availability and affordability of terrorism risk insurance, including specifically for places of worship. Further, it directs the Government Accountability Office to report on the vulnerabilities and potential costs of cyber terrorism, adequacy of coverage, and to make recommendations to address evolving cyber terrorism risks

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.