Following weeks of intense negotiations, the House passed theTerrorism Risk Insurance Program Reauthorization Act (S.2244) by a vote of 417-7 on Wednesday. The bill now headsback to the Senate.

"This Legislation further demonstrates the commitment by astrong group of bipartisan members of Congress to reauthorizing theTRIA program, as it is vitally important to the U.S. economy, andthe Big 'I' is grateful for today's action," said Bob Rusbuldt, Big"I" president & CEO. "This bill is important to ensurestability in the insurance, real estate and lending markets, aswell as providing needed agent and broker licensing reform on avoluntary basis. We are optimistic that the Senate willsoon pass this crucial legislation so it can be sent to thepresident's desk as soon as possible."

Among its provisions, the bill extends the TRIA program by sixyears and raises the amount needed in total losses before the TRIAprogram kicks in from the current $100 million to $200 million, ata rate of $20 million a year beginning in 2016. The bill alsoraises the federal government's mandatory recoupment from $27.5billion to $37.5 billion, increasing by $2 billion each yearbeginning Jan. 1, 2016. For all events, the bill wouldraise the private industry recoupment total from the current 133%of covered losses to 140% of covered losses. The bill does notinclude so-called bifurcation for treating nuclear, biological,chemical and radiological attacks differently from moreconventional forms of attack.

This news has been praised by insurance groups, including theBig 'I' (IIABA), Property Casualty Insurers Association ofAmerica (PCI), the National Association of ProfessionalInsurance Agents (PIA), the American Insurance Association (AIA)and the American Association of Managing General Agents (AAMGA),who all call on the Senate to pass the legislation without delayand send the final TRIA reauthorization to President BarackObama.

"PIA commends the House's passage of a long-term TRIA extensionin which everybody wins," said PIA National Executive VicePresident & CEO Mike Becker. "Insurance consumers, professionalinsurance agents, businesses across the country and our nationalsecurity will all be strengthened and better protected by therenewal of our nation's terrorism insurance program."

Others in the industry echoed this sentiment.

"PCI applauds the House for passing the Terrorism Risk InsuranceProgram Reauthorization Act of 2014," said David A. Sampson, PCI'spresident and CEO. "I appreciate the leadership of Chairman JebHensarling (R-TX), Ranking-Member Maxine Waters (D-CA),Subcommittee Chairman Randy Neugebauer (R-TX), and Ranking-MemberMike Capuano (D-MA) for their tireless efforts as well as the manyother supporters of TRIA on both sides of the aisle. PCI isgrateful that members of both chambers came together on abipartisan basis and adopted a hard won compromise with broadbipartisan support to maintain America's economic resiliency planto recover from terrorist attacks. I am grateful to ChairmanHensarling, who from the beginning said he wanted to negotiate along-term solution and with his leadership and good faith, thiscompromise honors his commitment on TRIA."

Leigh Ann Pusey, president and CEO of the AIA, said "Thelegislation's changes to TRIA, which are consistent with theHouse-Senate compromise, will further increase the private sector's'skin in the game' while providing policyholders and businesses thecertainty they need to help grow our nation's economy. TRIA has long enjoyed strong bipartisan and bicameral support. Weurge the Senate to pass the six-year TRIA bill compromise beforeCongress adjourns."

NARAB

The bill also includes agent licensing reform, withthe National Association of Registered Agents and Brokers(NARAB II) legislation that establishes a permanent NARAB.

"The Big 'I' is also thankful that the House TRIA bill includesthe National Association of Registered Agents and Brokerslegislation (NARAB II)," said Charles Symington, Big "I" seniorvice president of external and government affairs. "We would liketo thank House Financial Services Committee Chairman Jeb Hensarling(R-Texas) and Insurance Subcommittee Chair Randy Neugebauer(R-Texas) for their leadership in moving it through the House ontwo separate occasions this Congress and particularly want tohighlight Rep. Neugebauer's steadfast support of the bill."

NARAB II would achieve much needed reciprocity in producerlicensing and help policyholders by permitting greater competitionamong agents and brokers, the Big "I" said in a statement. Thislegislation would build upon regulatory experience at the statelevel, promote greater consistency in agent and agency licensing,and ease the burden that many agents face in doing business acrossstate lines. The bill also mandates various studies,including an annual study of small insurer market competitiveness,to examine challenges smaller insurers face in the terrorism riskinsurance marketplace, which the PIA applauds.

"The inclusion and passage of NARAB II after many years ofeducating our legislators and regulators on the benefits of a morecompetitive insurance marketplace also advances our goals offostering greater market reform and efficiencies. The underwritingof risks is no longer limited to state boundaries and archaicregulations," said Bernie Heinze, executive director for the AAMGA."Agents and brokers alike will be able to continue creatinginnovative solutions for specialized risks wherever they may be,with the appropriate consumer protections in place."

Insurance Capital Standards ClarificationAct

Also passed in the House by unanimous consent was the InsuranceCapital Standards Clarification Act of 2014 (S. 2270), whichrecognizes the difference betwen the banking and insurance marketsand clarifies that insurance companies are subject to FederalReserve oversight and are not forced to comply wtih bank-centriccapital standards.

"PCI has long been advocating domestically and internationallyagainst imposition of inappropriate bank-centric capitalrequirements on insurers," said Nat Wienecke, PCI's seniorvice president, federal government relations. "PCI is pleased thatthis legislation takes into account the unique nature of insurers'risks, which are fundamentally different from those for banking,and clarifies the Federal Reserve Board's authority to tailorcapital standards to insurance companies under its supervision.This legislation will continue to allow strong prudentialsupervision of insurance companies while preventing unnecessaryharm in the insurance marketplace to the detriment ofconsumers."

"Today's House vote is a common-sense solution to a technicalissue within Dodd-Frank," Symington said of the Insurance CapitalStandards Clarification passage. "The Big 'I' has long supportedthe principle that banking and insurance are different and requiredistinct regulatory standards. We thank the House for thisbipartisan vote."

The Senate passed identical legislation by unanimous consent inJune. The Insurance Capital Standards Clarification Act now headsto President Barack Obama's desk to be signed into law.