The New York City Council Committee on State and FederalLegislation on June 17 proposed a resolutionsupporting the extension of the Terrorism Risk Insurance Act.

Resolution (Res 1806-2013) urges Congress to protect theeconomic interests of New Yorkers and Americans by extending theTerrorism Risk Insurance Program Reauthorization Act of 2007(TRIA).

The full city council is expected to act on themeasure in coming weeks. The resolution was sponsored byChristine C. Quinn, City Council president, who is from Manhattan;Helen D. Foster, representing the Bronx; and Domenic M. Recchhia,Jr., representing Brooklyn.

"The terrorist attack in Boston has shown that New York City andother major cities in the United States remain potential targetsfor terrorism. The extension of TRIA is essential for thecontinued protection against terrorism as well as essential to thecontinued economic growth of New York City and the nation,"said Foster. "New York City continues to be thetarget of terrorist plots as are countless other major citiesacross the country. It is imperative that Congress andPresident Obama extend this important legislation immediately. Wemust continue to be prepared for the future!"

TRIA was extended in 2007 for seven years. It sunsets Dec. 31,2014 if not extended.

Among others, the Property Casualty Insurers Association ofAmerica (PCI) and the Risk and Insurance Management Society(RIMS), issued statements praising the New York CityCouncil's decision to take up the issue. PCI urged the City Councilto move quickly. RIMS submitted testimony.

"The inability to secure sufficient insurance coverage for actsof terrorism could result in the inability to secure financing forfuture construction projects," says RIMS testimony by Board Memberand New York City Chapter Member Lori Seidenberg. "Wthout adequateavailability of terrorism coverage many companies would not be ableto comply with lender covenants within mortgages that requirecoverage. This, in turn, would impede the ability to fund realestate transactions and would limit the normal functions of thereal estate market."

Rep. Carolyn Maloney, D-N.Y., was among those testified in favorof the resolution.

"This is a commonsense, non-partisan safeguard for our countryand our economy, and I applaud the City Council for urging Congressto act on it," said Maloney, the chief Democratic sponsorof bipartisan legislation introduced in the House in February, theTRIA Reauthorization Act of 2013, H.R. 508, which would extend theprogram for 5 years. The lead Republican sponsor is Rep. MichaelGrimm. The bill has 49 co-sponsors.

In her testimony, Maloney said a lack of terrorism insuranceafter 9-11 "meant that over $15 billion in real estate deals werestalled or canceled, which affected over 300,000 jobs. If we don'treauthorize TRIA, construction projects will again be canceled, andeven more jobs will be lost."

"Speaker Quinn, Chairwoman Foster and Councilman Recchia areabsolutely right to send a message to Congress that it's time toextend TRIA" said Kristina Baldwin, vice president of PCI, in astatement. "TRIA is about economic development and jobs,providing an important backstop so important projects can continueto move forward with appropriate and adequate insurancecoverage."