{ "id": "R43619", "type": "CRS Report", "typeId": "REPORTS", "number": "R43619", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 436783, "date": "2014-12-31", "retrieved": "2016-04-06T22:51:02.526903", "title": "Terrorism Risk Insurance Legislation in the 113th Congress: Issue Summary and Side-by-Side Analysis", "summary": "Prior to the September 11, 2001, terrorist attacks, insurance covering terrorism losses was normally included in commercial insurance policies without additional cost to the policyholders. Following the attacks, this ceased to be the case as insurers and reinsurers pulled back from offering terrorism coverage. It was feared that a lack of insurance against terrorism loss would have a wider economic impact, particularly because insurance coverage can be a significant factor in lending decisions. \nCongress responded to the disruption in the insurance market by passing the Terrorism Risk Insurance Act of 2002 (TRIA; P.L. 107-297). TRIA created a temporary program, expiring at the end of 2005, to calm the insurance markets through a government reinsurance backstop sharing in terrorism losses. The intent was that this would give the industry time to gather the data and create the structures and capacity necessary for private insurance to cover terrorism risk. TRIA did not require premiums to be paid for the government coverage. Instead, TRIA required private insurers to offer commercial insurance for terrorism risk with the government then recouping some or all federal payments under the act in the years following government coverage of insurer losses. \nUnder TRIA, terrorism insurance became widely available and largely affordable, and the insurance industry greatly expanded its financial capacity. There has been, however, little apparent success on developing a longer-term private solution, and fears have persisted about wider economic consequences if insurance were not available. Congress passed two extensions to the program, in 2005 (P.L. 109-144) and 2007 (P.L. 110-160). The 2005 extension was primarily focused on reducing the government\u2019s upfront financial exposure under the act, whereas the 2007 extension left most of the upfront aspect of the TRIA program unchanged, while accelerating the post-event recoupment provisions. The 2007 legislation also included the only expansion of the TRIA program since initial enactment; it extended the program to cover any acts of terrorism, as opposed to only foreign acts of terrorism. \nThe current TRIA program expires at the end of 2014. Although insurance industry capacity has increased since 2002, terrorism is still seen by many as essentially uninsurable. Without TRIA, the insurance industry has indicated that terrorism insurance will again become unavailable or unaffordable and fears are again being expressed that lack of terrorism insurance may slow down other sectors of the economy. Several bills (H.R. 508, H.R. 1945, H.R. 2146, S. 2244, and H.R. 4871) were introduced to extend TRIA and change different aspects of the program. The House and the Senate adjourned on December 16, 2014, without passing legislation to extend TRIA.\nThis report briefly outlines the issues involved with terrorism insurance, summarizes extension legislation in the 113th Congress, and includes a side-by-side of TRIA law and bills that were passed by the Senate (S. 2244), reported by the House Committee on Financial Services (H.R. 4871), and passed by the House (S. 2244 with a substitute amendment). For more a more in-depth treatment of the issues surrounding TRIA, please see CRS Report R42716, Terrorism Risk Insurance: Issue Analysis and Overview of Current Program, by Baird Webel.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R43619", "sha1": "c4907644418b458d67b23468c276615d2c1b25b0", "filename": "files/20141231_R43619_c4907644418b458d67b23468c276615d2c1b25b0.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R43619", "sha1": "53f43826a19bc0897581c4a95879230445fda0a4", "filename": "files/20141231_R43619_53f43826a19bc0897581c4a95879230445fda0a4.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc501846/", "id": "R43619_2014Dec11", "date": "2014-12-11", "retrieved": "2015-03-30T22:03:27", "title": "Terrorism Risk Insurance Legislation: Issue Summary and Side-by-Side Analysis", "summary": "After the September 11, 2001, terrorist attacks, Congress responded to the disruption in the insurance market by passing the Terrorism Risk Insurance Act of 2002 (TRIA; P.L. 107-297). TRIA created a temporary program, to calm the insurance markets through a government reinsurance backstop sharing in terrorism losses. The current TRIA program expires at the end of 2014. This report briefly outlines the issues involved with terrorism insurance, summarizes the extension legislation, and includes a side-by-side of the current TRIA law and the bills that have been passed by the Senate (S. 2244), reported by the House Committee on Financial Services (H.R. 4871), and passed by the House (S. 2244 with a substitute amendment).", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20141211_R43619_e5baaf5b95e3870c43dde982f25c859c8e937507.pdf" }, { "format": "HTML", "filename": "files/20141211_R43619_e5baaf5b95e3870c43dde982f25c859c8e937507.html" } ], "topics": [ { "source": "LIV", "id": "Terrorism", "name": "Terrorism" }, { "source": "LIV", "id": "Risk management", "name": "Risk management" }, { "source": "LIV", "id": "Government and business", "name": "Government and business" }, { "source": "LIV", "id": "Economic policy", "name": "Economic policy" }, { "source": "LIV", "id": "National security", "name": "National security" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc491370/", "id": "R43619_2014Jun24", "date": "2014-06-24", "retrieved": "2015-01-27T19:40:46", "title": "Terrorism Risk Insurance Legislation: Issue Summary and Side-by-Side Analysis", "summary": "This reports briefly outlines the issues involved with terrorism insurance, summarizes the extension legislation, and includes a side-by-side of the current TRIA law and the bills that have been ordered reported by the Senate Committee on Banking, Housing, and Urban Affairs (S. 2244) and the House Committee on Financial Services (H.R. 4871).", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20140624_R43619_c48a696067909c7a1800ce9951be8e879f62f065.pdf" }, { "format": "HTML", "filename": "files/20140624_R43619_c48a696067909c7a1800ce9951be8e879f62f065.html" } ], "topics": [ { "source": "LIV", "id": "Terrorism", "name": "Terrorism" }, { "source": "LIV", "id": "Counterterrorism", "name": "Counterterrorism" }, { "source": "LIV", "id": "Counterterrorism -- National policy -- U.S.", "name": "Counterterrorism -- National policy -- U.S." } ] } ], "topics": [ "Intelligence and National Security" ] }