WASHINGTON, DC—Last week the Senate adopted a unanimous consent agreement that will allow it to consider a seven-year extension of the Terrorism Risk Insurance Act, paving the way for the chamber to vote on it this week, The Real Estate Roundtable reports.

The Senate Banking Committee had approved an amended version of the Terrorism Risk Insurance Program Reauthorization Act of 2014 on June 3.

The consent agreement includes the following provisions to be considered on the Senate floor, the Roundtable says:

• A proposal regarding the time period in which the government must seek recoupment of any terrorism-related outlays;

• A proposal regarding community banking/Federal Reserve;

• An amendment on the Advisory Committee on Risk-Sharing Mechanisms;

• An amendment by relating to the National Association of Registered Agents and Brokers.

Observers, including the Real Estate Roundtable, are fairly certain that the bill will pass the Senate. The House of Representatives, however, is another matter. A bill extending the federal backstop for terrorism insurance has passed that chamber as well, and although it met the insurance and real estate industry's bare minimum requirements for coverage, many felt it was wanting.

The insurer copay has been increased to 20% and the backstop only comes into play when losses reach the $500 million mark. Also, the act calls for separate treatment of "conventional" terrorism and nuclear, biological and radiation attacks, or NBRC.

This month a group of insurer and other trade associations wrote to the House of Representatives leadership expressing concern about these features.

Other concerns are circulating as well—such as the fact that no joint committee has been set up to reconcile the two versions. In fact, says David Johnson, CEO of Strategic Vision, joint committees have not been set up for any of the current bills. Nonetheless, he tells GlobeSt.com, he believes something will pass at the 11th hour regarding TRIA.

"I expect the final version will be somewhat more favorable to the insurance and commercial real estate industries than the House version currently is, but less generous than the Senate version. It is too important to the business community for this not to pass."

Instant Insights /

TRIA Moves Forward in the Senate

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