{
  "id": "RL33177",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL33177",
  "active": false,
  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 320019,
      "date": "2006-01-12",
      "retrieved": "2016-04-07T19:21:23.645029",
      "title": "Terrorism Risk Insurance Legislation in 2005: Issue Summary and Side-by-Side",
      "summary": "Prior to the September 11, 2001, terrorist attacks, insurance covering terrorism losses was\nnormally\nincluded in general insurance policies without cost to policyholders. Following the attacks, both\nprimary insurers and reinsurers pulled back from offering terrorism coverage, citing particularly an\ninability to calculate the probability and loss data critical for insurance pricing. Some argued that\nterrorism risk would never be insurable by the private market due to the uncertainty and potentially\nmassive losses involved. Because insurance is required for a variety of economic transactions, it was\nfeared that a lack of insurance against terrorism loss would have wider economic impact.\n Congress responded to the disruption in the insurance market by passing the Terrorism Risk\nInsurance Act of 2002 (TRIA). TRIA created a temporary program, expiring at the end of 2005, to\ncalm the insurance markets through a government backstop for terrorism losses and to give the\nprivate industry time to gather the data and create the structures and capacity necessary for private\ninsurance to cover terrorism risk. From 2002 to 2005, terrorism insurance became widely available\nand largely affordable, and the insurance industry greatly expanded its financial capacity. There was,\nhowever, little apparent success on a longer term private solution and fears persisted about wider\neconomic consequences if insurance were not available. To a large degree, the same concerns and\narguments that accompanied the initial passage of TRIA were before Congress as it considered TRIA\nextension legislation.\n Congress responded to the impending expiration of TRIA with the passage of two different\nbills. The Senate bill,  S. 467 , was approved by the Senate on November 18, 2005. The\nlarge majority of the language from the House bill,  H.R. 4314 , was inserted into S.\n 467 and passed by the House on December 7, 2005. S.  467 was titled the Terrorism Risk\nInsurance Extension Act, whereas H.R.  4314 was titled the Terrorism Risk\nInsurance Revision Act. These titles did reflect essential differences between the two bills. S.\n 467 extended the current program by two years and further increased the private sector's\nexposure to terrorism risk, as did the original act. (During the three years covered by the initial act,\ninsurance industry deductibles and aggregate retention rose each year.) S.  467 continued\nto increase these and also reduced the types of insurance covered by the program and increased the\nsize of terrorist event necessary to trigger the program. H.R.  4314 extended the program\nfor two or possibly three years and substantially revised many aspects of it. Among the notable\nchanges, it excluded some lines of coverage and included others that were not covered before. It\nsegmented lines of insurance, introducing different deductibles for different lines. It included the\nconcept of resetting the deductibles and the trigger amount to lower amounts if a terrorist attack\noccurs in the future. The final version signed into law closely tracked the Senate legislation.\n This report briefly outlines the issues involved with terrorism insurance and includes a\nside-by-side of the initial TRIA, TRIA-extension legislation as considered in the House and Senate,\nand the final bill as signed by the President. It will not be updated.",
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    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc810443/",
      "id": "RL33177_2005Dec07",
      "date": "2005-12-07",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Terrorism Risk Insurance Legislation: Issue Summary and Side-by-Side",
      "summary": null,
      "type": "CRS Report",
      "typeId": "REPORT",
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    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc820081/",
      "id": "RL33177_2005Dec05",
      "date": "2005-12-05",
      "retrieved": "2016-03-19T13:57:26",
      "title": "Terrorism Risk Insurance Legislation: Issue Summary and Side-by-Side",
      "summary": null,
      "type": "CRS Report",
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      "active": false,
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  "topics": [
    "Intelligence and National Security"
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}