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Tuesday, January 13, 2015

President Obama Signs Terrorism Risk Insurance Act Into Law

On Monday, President Obama signed a six-year reauthorization of the Terrorism Risk Insurance Act (TRIA) that included provisions to amend the 2010 Dodd-Frank Act financial reform law.  The Obama Administration was disappointed the bill included unrelated Dodd-Frank provisions, but went ahead and signed the bill into law, in an effort to further protect taxpayers.  The bill included measures that relieve ranchers, energy businesses and other users of derivatives from certain capital requirements which are part of the Dodd-Frank Act.

The bill, which was passed overwhelmingly by the House and Senate, will extend TRIA for six years while increasing the amount the private sector would be required to cover after a terrorist attack. The bill offers federal insurance support for owners of skyscrapers, sports stadiums, and shopping malls, which may face terrorism threats.

Additionally, the bill includes a provision long-sought by ABIA that establishes an independent National Association of Registered Agents and Brokers, known as NARAB II. As NARAB members in good standing, agents and brokers could sell or broker insurance in any state based on a home-state license.  Also included in the bill were two other ABA-supported measures, one requiring at least one Federal Reserve Board member have experience with community banking and another clarifying that end users of derivatives are exempt from posting margin for uncleared swaps. 

TRIA renewal has been a longstanding priority for ABA and its American Bankers Insurance Association and ABA Securities Association subsidiaries.