The American Bankers Insurance Association (ABIA) sent a letter on Monday thanking six senators for introducing S. 2244, a bipartisan bill that would renew the Terrorism Risk Insurance Act, which is scheduled to expire at the end of the year.
The bill -- introduced by Sens. Chuck Schumer (D-N.Y.), Dean Heller (R-Nev.), Mark Kirk (R-Ill.), Jack Reed (D-R.I.), Chris Murphy (D-Conn.) and Mike Johanns (R-Neb.) -- would reauthorize TRIA through 2021, increase private insurers’ “co-pay” from 15 to 20 percent and raise the threshold of losses for mandatory federal recoupment of payments to $37.5 billion.
“Terrorism risk remains effectively uninsurable without the government backstop, and the cost to our economy would be too great if such coverage was not available,” ABIA said in a letter. “It is vital that the economy continue to rebuild and we see the availability of comprehensive commercial insurance, including coverage for terrorism risk, as an important component of recovery.”
The American Bankers Association and the ABA Securities Association also support the introduction of S. 2244. For more information, please contact Kevin McKechnie.
Read the support letter.