WASHINGTON– Industry groups reacted to today's Senate vote approving legislation extending federal supports for terrorism insurance by urging lawmakers to quickly reconcile the Senate bill with House legislation.
The Senate measure, which is less expansive than the House version would continue the federal backstop for terrorism risk for 7 years, through 2014. The bill is titled the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) of 2007.
Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee, said "[Rep.]Barney Frank[D, Mass., House Financial Services Committee chairman] and I have a very good relationship" and he's "quite confident" that the House and Senate can work out their differences in time to get something through before Congress adjourns for the year.
In their comments, leaders of insurance trade organizations voiced strong support for the Senate decision move on its version of the legislation before leaving on a two-week Thanksgiving recess.
However, Council of Insurance Agents and Brokers officials cautioned their membership in a note that, "Just as in 2002 and again in 2005, the Senate leaders of the Banking Committee have little to no "wiggle room" to expand the scope or the reach of the legislation through concessions to the House."
That statement from Joel Wood, CIAB senior vice president for government affairs, was a reminder that Rep Frank, the House Financial Services Committee chairman who will lead negotiations for his chamber, has made clear that he will not accept the Senate bill as a fair accompli, as it was forced to do in 2005, when he was ranking minority member of his committee.
Marc Racicot, president of the American Insurance Association, called the Senate vote "a major step forward to the ultimate goal of reauthorizing the terrorism risk insurance program. We appreciate the priority the Senate has given this vitally important legislation.
"The next step is just as critical – It's absolutely necessary that the Congress continue their work and reauthorize this program by year's end," Mr. Racicot added.
Jimi Grande, vice president of federal and political affairs at the National Association of Mutual Insurance Companies voiced the same sentiments.
"We applaud the Senate for their vote this morning," Mr. Grande said. "We continue to encourage the two congressional chambers to work together for final passage of this important legislation."
Charles E. Symington Jr., senior vice president for government affairs and federal relations at the Independent Insurance Agents and Brokers of America, added that, "The Senate's action comes at a critical time with just over a month until the terrorism backstop expires."
He added that the IIABA "encourages both the House and Senate to reconcile their bills and send this crucial legislation to the President as soon as possible."
Janice Ochenkowski, Risk and Insurance Management Society president and managing director of Jones Lang LaSalle Incorporated, said the group "commends the Senate for their commitment in working through a number of issues and quickly bringing this important legislation to the floor for a full vote."
She said, RIMS wanted to express gratitude to the Banking Committee leaders, Sen. Dodd and Ranking Minority Leader Sen. Richard Shelby, R-Ala., who "have demonstrated their commitment to not only the business community, who so strongly depend upon the availability of terrorism insurance, but more importantly to our nation's economic well being."
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