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Monday, November 24, 2014

TRIA Talks at Standstill

TRIA reauthorization is still in question as Senate Democrats and House Republicans have yet to come to an agreement on how to reauthorize the government's terrorism risk insurance program. 

Both parties want to extend TRIA, which expires at the end of the year, but issues over reducing the government backstop and bifurcating the program's treatment of damages are still preventing reauthorizatin by both parties and chambers.

The House bill would return the program to its 2002 definitions, separating damages caused by conventional  means and damages caused by nuclear, chemical, biological and radiological means. 

The Senate bill, which passed with a massive 93 vote majority, would not return the program to its 2002 definitions and includes a seven-year extension.

ABA and ABIA are strong supporters of the Senate's bill and believe the short term extension proposed by the House would resolve little in the markets.

If you would like to learn more about ABIA's support of TRIA or join our TRIA Task Force, please contact us and visit our website.

Friday, November 21, 2014

This Week at the CFPB

A summary of this week's news about the CFPB from the ABIA and ABA Dodd-Frank Tracker:
The ABIA has a Task Force of members that work on issues related to the CFPB's regulation of insurance products. If you are an ABIA member and would like to learn more about ABIA's work with CFPB to educate them about the bank-insurance industry or join our CFPB Task Force, please contact us and visit our website.

Thursday, November 20, 2014

ABIA Hosts Compliance Webinar and Discussion Group on Add-on Product Oversight

Yesterday, the American Bankers Insurance Association hosted a Compliance Webinar and Discussion Group on Add-on Product Oversight.  The webinar focused on the compliance obligations of add-on product providers and presented an overview of the CFPB Federal consumer financial laws and the CFPB’s expectations and enforcement activities in this area.   

Download the presentation.
Indicates ABIA members-only material. 


Wednesday, November 19, 2014

HFSC Hearing on Flood Insurance - Pass HR 4558

ABIA member WNC testified in favor of ABIA- and ABA-supported legislation at the House Financial Services Committee meeting this afternoon. HR 4558 would provide provide a path forward for private flood insurance policies.

Congress has made clear that private flood insurance should be an available alternative to the NFIP. Efforts to provide clarity, such as the passage of Section 100239 of the Biggert-Waters Flood Insurance Reform and Modernization Act of 2012, have become hopelessly bogged down in implementation and have inadvertently acted to reduce private sector involvement rather than promote it.

In his testimony, Jordan Gray from WNC commented on the solution that this legislation would provide:
The solution is simple – give lenders and borrowers the same discretion to evaluate flood insurance as they have to evaluate all other insurance products. H.R. 4558 - The Flood Insurance Market Parity and Modernization Act of 2014 does this.
H.R. 4558, if enacted, would encourage the development of a competitive and sustainable private flood insurance market.

Tuesday, November 18, 2014

ABIA Submits Testimony for HFSC Hearing on Flood Insurance

The American Bankers Insurance Association and the American Bankers Association submitted testimony for the record in Wednesday’s hearing in the House Financial Services Committee’s Insurance Subcommittee on the private flood insurance bill sponsored by Reps. Dennis Ross (R-FL) and Patrick Murphy (D-FL). The bill would create a private flood insurance market by allowing borrowers to buy private flood policies that would satisfy the “Mandatory Purchase Requirements” of the Flood Disaster Protection Act of 1973.

The bill, HR 4558 , the Flood Insurance Market Parity and Modernization Act of 2014, will be debated, is strongly supported by ABA and ABIA members.

Read the full testimony.

For more information, contact ABIA's Kevin McKechnie.