Insurance industry trade group officials lauded passage of theSenate version of legislation reauthorizing a federal backstop toterrorism risk insurance and urged the House to act promptly.

Leigh Ann Pusey, president and CEO of theAmerican Insurance Association (AIA), said in the wake of Senateaction that AIA “remains confident” the legislation reauthorizingthe Terrorism Risk Insurance Act will become law in 2014 “withstrong bi-partisan support.”

The bill is S. 2244, the Terrorism Risk Insurance ProgramReauthorization Act of 2014. It would replace a terrorism riskinsurance backstop that expires Dec. 31. It passed the Senate,93-4.

A trade group representing insureds had the same reaction.

“The Senate's strong bipartisan vote for this legislationunderscores the importance of TRIA and the need forreauthorization,” said Marty DePoy, spokespersonfor the Coalition to Insure Against Terrorism (CIAT). “We hope theHouse will move just as quickly, in order to get a final bill forthe president's signature well before the end of the year,” hesaid.

However, Joel Wood, senior vice president ofgovernment affairs for the Council of Insurance Agents and Brokers,raised a yellow caution flag. In a memo to CIAB members, Wood said,“In short, today has been a good day for moving the TRIA processforward, but the House obstacles remain significant. It is ourfervent hope that these obstacles can be bridged in the comingweeks.”

He described the Senate bill as making only “tweaks” to theexisting legislation.

Wood also told CIAB members that, because the TRIA legislationhas been so widely supported, “there have been multiple efforts toattach non-terrorism issues to the legislation, leading oneprominent legislator to warn against 'Christmas TRIA.'”

He added, “We are nonetheless very grateful that in bothchambers to date, the only 'Christmas ornament' that has beenattached to the bill is the creation of the National Association ofRegistered Agents and Brokers (NARAB).”

Wendy Peters, Willis senior vice president andTerrorism Insurance Practice Group Leader, said, “While the Senateaction signals a significant step forward,” the House will stillneed to vote on its own version of the bill which will then have tobe reconciled with the Senate bill before it can be sent to thePresident for his signature.

“With eight days left in session before summer recess forCongress, It is likely that final Congressional action will nottake place until after Congress returns after Labor day,” Peterssaid.

“If action is not completed then, the legislation will have towait for the expected lame duck session after the fall elections,”she said.

The Senate vote was “an important step toward keeping in placethe vital protections for the American economy that the TerrorismRisk Insurance Charles M. Chamness, president andCEO of the National Association of Mutual Insurance Companies,said, “The overwhelming, bipartisan support we've seen for thisreauthorization demonstrates how much it has done for our nation,and how important it is to our economy.”

Nat Wienecke, senior vice president, federalgovernment relations of the Property Casualty Insurers Associationof America (PCI), said, “It is great to see members of both partiescome together in a broad bipartisan fashion to support America'seconomic resiliency plan to recover from terroristattacks.”

Robert Rusbuldt, president & CEO of theIndependent Insurance Agents and Brokers of America, noted, “Agentsand brokers must have the ability to provide terrorism protectionto their customers in the event of another unthinkable attack onAmerican soil.”

He said the current TRIA program “has worked well” to ensure theavailability of this coverage and it is imperative that a lapse beavoided. We thank the Senate for their work to promptly move S.2244 through the legislative process.”

Jon Gentile, national director of federalaffairs for the National Association of Professional InsuranceAgents, said that, “We are pleased that the Senate bill extendsTRIA for a full seven years and that it seeks to ensure the widestpossible availability and affordability of terrorism insurance forconsumers.”

Gentile “urged” the House “to quickly follow suit, so thatCongress can get to work resolving differences between the Senateand House versions of the legislation.”

David Thomas, senior vice president of theAmerican Association of Managing General Agents (AAMGA), said that,““We are encouraged with progress made recently to finalize therespective bills in regard to the sunset provisions, financialtriggers and treatment of nuclear, biological, chemical andradiological (NBCR) events.”

Thomas said that, “Wholesale insurance agents, brokers, programadministrators and managers, aggregators and the markets “all needclarity of purpose in order to ensure the risks they are insuringfor commercial and residential policyholders are readily availableand properly structured to afford protection should a terroristicevent occur.”