Despite strong encouragement from the insurance industry andbusiness groups around the country, the U.S. Senate has adjournedfor the year without passing the Terrorism Risk Insurance ProgramReauthorization Act of 2014 (TRIPRA).

The Senate's action came despite strong bipartisan support, andafter the U.S. House of Representatives had passed the legislationby a vote of 417–7. The bill will now have to be reintroduced intoboth houses of Congress in January as entirely new legislation.

TRIPRA, a successor to the Terrorism Risk Insurance Act (TRIA),is seen as vitally important in providing coverage for damage anddestruction as a result of terrorist incidents like the 9/11attacks on the World Trade Center. TRIA was passed in 2002 as aresponse to those attacks, making the federal government theinsurer of last resort for large public venues, like airports andsports stadiums, or major infrastructure, like the Hoover Dam orNew York City's subway system.

There was some talk that the 2015 Super Bowl Game might be injeopardy if the insurance program wasn't renewed. The NationalFootball League has since said that the game will be played,regardless.

Understandably, the reaction among industry groups is one ofshock, dismay and disappointment. Here's a roundup of theirstatements thus far.

National Association of Professional Insurance Agents(PIA)

PIA is "shocked and dismayed" that Congress would adjournwithout doing its job by passing a long-term renewal of theTerrorism Risk Insurance Act (TRIA), especially at a time ofincreasing terrorist threats. "Disagreement won the day andpolitics took precedence over protecting the American people," saidPIA National Executive Vice President & CEO Mike Becker. "IfTRIA is allowed to lapse it will not only be devastating to theAmerican economy, it will also put our national security atrisk."

Independent Insurance Agents & Brokers ofAmerica (IIABA or the Big "I")

Robert Rusbuldt, president and CEO of the Independent InsuranceAgents & Brokers of America (IIABA, or the Big "I"), said,"With more than a week before Christmas, we are profoundlydisappointed in the Senate's premature decision to leave town latelast night without extending the Terrorism Risk Insurance Act whichprovides vital protection for the U.S. economy. The TRIAlegislation had overwhelming bipartisan support in both chambers ofCongress along with strong support from the White House. Thisinaction is particularly galling in light of the 417–7 vote in theHouse last week on this exact same legislation."

Insurance Information Institute

"A major terrorist attack occurring without a federal TerrorismRisk Insurance Act (TRIA) law on the books will be far moredisruptive to the U.S. economy than one where TRIA is in place,"said Dr. Robert Hartwig, president of the I.I.I. and an economist."Terrorism insurance policies are going to lapse in 2015, andinsurers will be under no obligation to renew them, adverselyimpacting the construction, energy and real estate industries,among others. For instance, a theatre owner hosting a controversialmovie premiere on Christmas Day may have insurance coverage forlosses triggered by an act of terrorism but this same businessmight not have it if a comparable attack were to occur on NewYear's Day."

The Risk Management Society (RIMS)

RIMS said it was disappointed in the Senate's decision, sayingthat the program's expiration, "will have many negativerepercussions for commercial insurance consumers," and would be adrag on the U.S. economy as a whole.

"Congress allowed a program to expire that has proven to be asuccess," said RIMS president Carolyn Snow. "Since its inception,TRIA has stabilized the marketplace by providing adequate capacityat affordable rates. Its expiration will almost certainly causerates to rise, placing many lending agreements in jeopardy andforcing some organizations to self-insure or simply go without.RIMS and many other organizations have been pushing Congress topass an extension for the past two years but Congress senselesslyignored those concerns and waited until the very last moment. Thisdelay has ultimately led to the worst possible outcome."

Property Casualty Insurers Association of America(PCI)

David A. Sampson, PCI's president and CEO said, "It isunconscionable that the U.S. Senate would adjourn without finishingtheir job and reauthorizing a long-term Terrorism Risk InsuranceAct (TRIA) when the threat of a terrorist attack against the UnitedStates is at the highest level it has been in a decade.

"TRIA plays a vital role in our national economic security,"added Sampson. "If a massive attack occurs before TRIA isreauthorized, there could be no terrorism insurance coverage ortaxpayer protection. PCI is profoundly disappointed by thedysfunction in Washington and we urge the next Congress to addressa long-term reauthorization of TRIA immediately when they convenein January."

American Insurance Association (AIA)

Leigh Ann Pusey, the AIA's president and CEO, said theassociation is "incredibly disappointed that the Senate failed topass the House-approved (417–7) six-year TRIA reauthorization billprior to adjourning. By letting TRIA lapse on January 1, 2015,Congress has failed to protect taxpayers and the economy.

"Without TRIA in place on Jan. 1, insurers will be forced toassess their exposures," Pusey continued. "The program's lapse willsignificantly jeopardize the terrorism insurance marketplace thatcurrently protects our nation's economy against major acts ofterrorism. We strongly urge the new Congress to take up theHouse-Senate negotiated TRIA reauthorization package as its firstitem of business when it returns in January in order to minimizemarketplace disruptions."

The National Association of Mutual Insurance Companies(NAMIC)

"TRIA provides an essential element of certainty and security toour economy against the unknowable threat of terrorism, and thecountry needed the program's reauthorization," said Charles M.Chamness, president and CEO of NAMIC. "TRIA has helped fostercontinued economic growth and development in cities and townsacross the country, and its expiration puts at risk an alreadyfragile economy. We are incredibly disappointed in Congress. Thereis no good reason that a program so vital to our nation's economybe allowed to lapse. The country deserved better. We have 14 daysleft until the program expires; if they won't return on their own,the president should call them back to town to finish theirjob."

Coalition to Insure Against Terrorism(CIAT)

CIAT spokesman Marty DePoy described the organization as"incredibly disappointed" that the Senate adjourned withoutreauthorizing the Terrorism Risk Insurance Act. In his statement,DePoy noted that the program since 9/11 has provided criticalstability to the marketplace against another terrorist attack."This is a bipartisan failure; the 113th Congress has let downAmerican workers, American businesses and jeopardized U.S. economicand national security," he said. "CIAT urges the new Congress tomake TRIA reauthorization its top priority in January andimmediately vote to extend the program for the long term."

NAIOP, the Commercial Real Estate DevelopmentAssociation

"The failure to renew TRIA will come at a significant cost toour economy, job growth and progress in the commercial real estatemarket," said NAIOP President and CEO Thomas J. Bisacquino. "It'smore than a speed bump, it's a stop sign, and that's the last thingour fragile economic recovery needs right now. We hope thePresident and the new Congress will make renewal of TRIA the firstorder of business when they return in January."

National Association of Insurance and Financial Advisors(NAIFA)

A less-publicized portion of TRIPRA included the NationalAssociation of Registered Agents and Brokers (NARAB) Reform Act of2014, which establishes NARAB as an independent nonprofitcorporation to prescribe, on a multi-state basis, licensing andinsurance producer qualification requirements and conditions.

NAIFA President Juli Y. McNeely said that the organization "isdisappointed the Senate did not pass S.534, the Terrorism RiskInsurance Program Reauthorization Act (TRIA), which includedlegislation that would have created a National Association ofRegistered Agents and Brokers (NARAB). NARAB II would have allowedinsurance agents to operate in multiple states moreefficiently."