The House today introduced legislation that would extend thecurrent Terrorism Risk Insurance Act until the end of 2019.

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It represents the opening round of what is expected to be atough battle to extend the program in its current form.

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Jimi Grande, senior vice president of federal and politicalaffairs for the National Association of Mutual Insurance Companies,says the industry is trying to get Congress to reauthorize TRIAbefore the end of 2013, "rather than waiting until the eleventhhour to act" because most business-insurance contracts are for oneyear, and waiting until the end of 2014 to renew the legislationwould create problems for both insureds and insurers.

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"Failing to reauthorize the program, or even addressing it atthe last minute, could have devastating consequences to theeconomy," Grande says.

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The current enabling act expires at the end of the currentCongress, Dec. 31, 2014, and the industry is girding for anextended effort to have a far more conservative Congress thanexisted when the program was first renewed in 2007.

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The current legislation is known as the Terrorism Risk InsuranceProgram Reauthorization Act of 2007 (TRIPRA).

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The chief sponsors of the legislation are Rep. Jeff Grimm,R-N.Y., and Carolyn Maloney, D-N.Y. Interestingly, the onlycommittee chairman named as a co-sponsor was Rep. Pete Sessions,R-Tex., chairman of the House Rules Committee.

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Besides Grimm, Maloney and Sessions, Besides Grimm and Sessions,other co-sponsors are Rep. Peter King, R-N.Y.; Rep. André Carson,D-Ind.; Rep. Carolyn McCarthy, D-N.Y.; Rep. Greg Meeks, D-N.Y.;Rep. Dennis Ross, R-Fla., and Rep. Tim Bishop, D-N.Y.

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Maloney and McCarthy are senior Democrats on the House FinancialServices Committee, which has jurisdiction over the bill.

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Former Rep. Judy Biggert, R-Ill., who was chair of theSubcommittee on Insurance, Housing and Community Opportunity of theHouse Financial Services Committee, indicated in November that theHouse Republican leadership would have a tough time extending theprogram in its current form. She said then that Congress will bevery deliberate as it debates the next step on terrorism insurancein the new Congress.

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Rep. Randy Neugebauer, R-Texas, has taken over the committee. Hedeclined through his staff to comment today, and was not listed asa co-sponsor of the legislation.

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The push to get this issue before Congress early is comingprimarily from users of insurance, led by the Real EstateRoundtable.

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 Clifton E. (Chip) Rodgers, Jr., senior vicepresident of the group, argues that a "viable private-sectormarketplace for this coverage does not yet fully exist," and theprogram's expiration would leave policyholders and taxpayersexposed and unprotected – just as they were after 9/11.

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The Coalition to Insure Against Terrorism, of which theRoundtable is a key member, issued a statement urging "Congress toact quickly to continue this important private/publicpartnership."

Leigh Ann Pusey, president and CEO of the American InsuranceAssociation, says,  "Terrorism does not meet the core characteristicsof a privately 'insurable peril.'"
She adds, "TRIA provides amuch-needed backstop to insurance companies for large certifiedterrorism events, above a $100 million loss, while requiringinsurers to offer terrorism insurance to commercial policyholders.As a result, insurers are able to offer terrorism coverage tocommercial policyholders while TRIA provides all-important marketstability. "The program's triggers and recoupment mechanism protecttaxpayers and greatly mitigate its costs. TRIA and its successorprograms have worked at little to no taxpayer expense and continueto make terrorism coverage widely available," shesays.