120 In Congress Ask Terror Backstop Renewal
By Steven Brostoff, Washington Editor
NU Online News Service, June 11, 1:59 p.m. EDT, Washington?Some 120 members of the House of Representatives are urging the Bush administration to support extension of the Terrorism Risk Insurance Act.[@@]
In a letter to Treasury Secretary John Snow, the bipartisan group said that TRIA extension is vital since there is no evidence that a sustainable market for terrorism insurance will exist after TRIA's scheduled expiration date of Dec. 31, 2005.
The letter was signed by senior members of both parties, including Reps. Sue Kelly, R-N.Y., Richard Baker, R-La., Barney Frank, D-Mass., and John Dingell, D-Mich.
The letter says that as a direct result of TRIA, terrorism risk insurance is available and businesses have access to coverage.
"TRIA has provided a limited federal backstop, which has helped stabilize the market prior to a terrorist attack at virtually no cost to the federal government," the letter says.
"By enabling commercial property and casualty policyholders to obtain terrorism insurance, TRIA has provided a boost to construction and job creation, strengthened economic growth and security, and reduced the impact of any future terrorist attack," the letter adds.
The letter urges Treasury to issue a report on the effectiveness of TRIA sooner than the current legislative deadline of June, 2005. Congress, the letter says, needs time to evaluate and discuss the findings.
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