On Wednesday, the U.S. House of Representatives passed H.R. 26,the "Terrorism Risk Insurance Program Reauthorization Act of 2015"during the first days of the 114^th Congress by a 416-5bipartisan vote.

If signed into law, this legislation will extend for six yearsthe Terrorism Risk Insurance Act (TRIA) program, which expired Dec.31, 2014—leaving much of the commercial property & casualtymarket at severe financial risk from a terrorist attack.

The bill includes the National Association of Registered Agentsand Brokers (NARAB II) legislation that would establish a permanentNARAB to streamline agent licensing to benefit small businesses andmany insurance consumers.

P&C industry organizations and associations were quick toapplaud the House's actions, and urged the Senate toact. 

"This bipartisan action today by the House is vitally importantto instill confidence in markets that this new Congress willquickly act to reauthorize the TRIA program that has protected theU.S. economy since its inception in 2002," Big "I" president &CEO Bob Rusbuldt said in a statement. "This bill is imperative forstability in the insurance, real estate and lending markets, aswell as providing needed agent and broker licensing reform on avoluntary basis. 

"We ask that the Senate pass this crucial legislation as quicklyas possible so it can be sent to President Obama's desk to besigned into law," Rusbuldt added.

In addition to reauthorizing the TRIA program for six years, thebill would also raise the trigger amount needed in total lossesbefore the TRIA program kicks in from the current $100 million to$200 million, over five years, beginning in calendar year 2016, theBig "I" noted. Also over five years, starting Jan. 1, 2016, themandatory recoupment would also go from $27.5 billion to $37.5billion, increasing by $2 billion each year.

For all events, the bill would raise the private industryrecoupment total from the current 133% of covered losses to 140% ofcovered losses.

The Big "I" also expressed its approval that the House TRIA billonce again includes the National Association of Registered Agentsand Brokers legislation (NARAB II). "Now it is imperative that theSenate act, and act quickly," says says Charles Symington, Big "I"senior vice president of external and government affairs.

"We applaud the House for its quick action to reauthorize TRIAand restore the federal program's certainty for carriers, brokersand insureds," said Brady Kelley, NAPSLO's executive director. "Weare also pleased the legislation will enact NARAB, which iscritical to the much-needed reform and streamlining of the agentand broker licensing process for those producing business inmultiple states – a process that today is very onerous andinefficient state-by-state. We encourage the Senate to act just asswiftly to send this critical legislation to the White House."

The National Association of Professional Insurance Agents (PIA)commended the House's passage of a long-term TRIA extension. "Thislegislation provides the certainty that America's businesses andinsurance consumers need," said PIA National Executive VicePresident & CEO Mike Becker. "We urge the Senate to pass thisbill without delay."

"The House is off to a good start," added PIA National Directorof Federal Affairs Jon Gentile. "The Senate should quickly followsuit."

Ken A. Crerar, president/CEO of The Council of Insurance Agents& Brokers (CIAB), said, "We are extremely grateful to Houseleadership, Chairman Hensarling, Subcommittee on Housing andInsurance Chairman Neugebauer and Rep. Waters, for seeing thisthrough. We continue to urge their counterparts in the Senate toact quickly to pass this critical legislation. Allowing TRIA toexpire was a dangerous gamble that puts current terrorism policiesin peril and poses significant risk to economic growth and Americanjobs."

"Only a long-term reauthorization of TRIA will restore marketcertainty and protect our economy against major acts of terrorism,"said Leigh Ann Pusey, president and CEO of the American InsuranceAssociation (AIA).  "We urge the Senate to quickly passthe bill in order to restore market certainty and protect oureconomy against terrorism."   

Dave Matcham, chief executive of the International UnderwritingAssociation (IUA), noted that a renewal of TRIA"will provide the insurance industry with theeconomic security it needs to continue supporting the wider economyacross a range of business classes."

Charles M. Chamness, president and CEO of the NationalAssociation of Mutual Insurance Companies (NAMIC), said, "Thislegislation strikes the right balance between protecting thetaxpayers and keeping the TRIA program within reach of thosecompanies that operate on a regional or single-state basis. A moredrastic increase to the threshold for federal intervention may havekept many of those companies from providing terrorism coverage,leaving fewer options and increased rates for consumers."

Members of the Coalition to Insure Against Terrorism are"pleased Speaker Boehner, Majority Leader McCarthy and ChairmanHensarling have made TRIA reauthorization a top priority for thenew Congress and commend the members of the House for quicklyapproving this important legislation," said CIAT spokesman MartyDePoy. "It's now time for the Senate to follow the House's lead andimmediately renew this program that's proven so critical to U.S.economic and national security."

Showing a united front, industry groups formed a coalition andsubmitted a letter to the Senate Wednesdayafternoon, urging them to pass H.R. 26. The coalition stressed thatthe Act "is vital to the millions of businesses, job creators andworkers across the country reliant on TRIA to secure terrorisminsurance and protect our economic growth."

Below, the letter's text:

Dear Senator:

American businesses strongly supportH.R. 26 – the Terrorism Risk Insurance Program.

Reauthorization Act of 2015. Today,the House passed H.R. 26 by an overwhelming, bipartisan vote of 416to 5. This bill is the same as the TRIA legislation that passed theHouse by a bipartisan vote of 417-7 on December 10, 2014. Ourcoalition represents a diverse and broad majority of businessstakeholders. We urge you to expeditiously PASS this bill.

The Terrorism Risk Insurance Act isvital to the millions of businesses, job creators, and workersacross the country reliant on TRIA to secure terrorism insuranceand protect our economic growth. Following the attacks of September11, 2001, Congress created TRIA to address a void in themarketplace, foster economic stability, and provide certainty tofor-profit and non-profit entities across the country. For the pastdozen years, the United States has relied on TRIA as a fiscallyresponsible terrorism risk management plan to protect taxpayers andour national security and stability.

It is critical that Congress actimmediately to keep our terrorism insurance protection program inplace. We urge your support of this important bill.

Sincerely,

American Association of ManagingGeneral Agents (AAMGA)
American Bankers Association (ABA)
American Gaming Association (AGA)
American Hotel & Lodging Association (AH&LA)
American Insurance Association (AIA)
American Land Title Association (ALTA)
American Society of Workers Compensation Professionals(AmCOMP)
Associated Builders and Contractors (ABC)
California Insurance Wholesalers Association (CIWA)
CCIM Institute
Coalition to Insure Against Terrorism (CIAT)
Council of Insurance Agents and Brokers (CIAB)
CRE Finance Council (CREFC)
Financial Services Roundtable (FSR)
Independent Insurance Agents & Brokers of America (Big"I")
Institute of Real Estate Management (IREM)
Mortgage Bankers Association (MBA)
National Apartment Association (NAA)
National Association of Home Builders (NAHB)
National Association of Mutual Insurance Companies (NAMIC)
National Association of Real Estate Investment Trusts(NAREIT)
National Association of REALTORS® (NAR)
National Multifamily Housing Council (NMHC)
Property Casualty Insurers Association of America (PCI)
Reinsurance Association of America (RAA)
Texas Surplus Lines Association (TSLA)
The Real Estate Roundtable (The Roundtable)
The Risk and Insurance Management Society (RIMS)
U.S. Chamber of Commerce