WASHINGTON, DC—As we reported earlier this week, the renewal of the Terrorism Risk Insurance Act is headed to the Senate floor on Thursday for a full vote following last week’s unanimous consent agreement.
The Senate Banking Committee approved an amended version of the Terrorism Risk Insurance Program Reauthorization Act of 2014 on June 3. The measure would increase an insurers’ co-pay from 15% to 20%, with the government still covering 80% of each company’s additional losses. This increase would be phased in incrementally over five years. The proposed legislation would also raise the mandatory recoupment threshold to $37.5 billion, so that when the insurance industry’s aggregate uncompensated losses are below $37.5 billion the government will be required to recoup its TRIA payments outlaid to insurers.
Real Estate Roundtable CEO Jeff DeBoer, a strong advocate of the measure, sent out a note Thursday morning to Senators strongly urging them to vote for the measure.
It would be surprising if the vote doesn’t pass as it is generally supported in the Senate. Trickier will be the negotiations to reconcile the Senate version of the bill with the less generous House of Representatives version.