NCOIL Okays Resolution For TRIA Extension

NCOIL Okays Resolution For TRIA Extension

NU Online News Service, July 16, 3:37 p.m. EDT?The National Conference of Insurance Legislators meeting in Chicago yesterday adopted a resolution urging Congress to extend the Terrorism Risk Insurance Act.[@@]

The Property Casualty Insurers Association of America, which testified in support of the resolution at the NCOIL Task Force on Terrorism session, applauded the group's action. The law is set to expire in December 31, 2005.

Des Plaines, Ill.-based PCI "is working to convince members of Congress to extend the program so that terrorism insurance remains available to those businesses who want and need it," said Don Griffin, PCI vice president of commercial lines.

"Without adequate terrorism insurance to cover losses from future terrorist attacks, lenders may be unwilling to extend loans for commercial transactions, jeopardizing construction projects, limiting capital intensive initiatives, and restricting economic growth," he warned.

Two bills addressing the extension of TRIA have been introduced in the House of Representatives.

Mr. Griffin said PCI is "encouraged by the introduction of these bills as it shows that federal lawmakers understand the need to extend the program this year. NCOIL's support for the extension of TRIA adds another important and influential voice to this effort."

The NCOIL resolution reads in part: "Whereas, without a backstop, a limited availability of insurance against terrorism would have a severe adverse effect on our country's economy as financiers would be reluctant to lend, businesses would be reluctant to invest, and consumers would be unable to afford insurance; and Whereas, NCOIL supported the enactment of the Terrorism Risk Insurance Act of 2002; Now therefore be it resolved that NCOIL supports the extension for the Terrorism Risk Insurance Act of 2002 for a sufficient period of time to permit discussion and development of a long-term solution?"

PCI is composed of more than 1,000 member companies who write $154 billion in annual premium.