Congress Passes TRIA Renewal; Legislation Sent to President's Desk
National News • December 18, 2005
Congress approved the Terrorism Risk Insurance Revision Act of 2005 late last week after reconciling differing versions passed in both the House and the Senate. The legislation now moves to the ...
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Subject: TERRORISM REINSURANCE
Posted On: December 19, 2005, 12:51 pm CST
Posted By: Lawrence Whalley
Comment:
The Constitutional issue is contained in two of the functions of the federal government. Making war and interstate commerce. Since we are at war with terrorists and the USA has declared such a state of war exists the federal government must take on itself all elements of war related loss, whether foreign or domestic injuries or damage. Secondly, under the interstate commerce clause, the federal government allowed the states to regulate insurance contracts. Unless the federal government preempts the state regulation of form and rate even the revised TRIA extension will not solve our difficulties in New York, Georgia, and Florida where excluding terrorism losses over certain thresholds are not possible.
While many characterize this as another corporate subsidy, they forget the United States is at War and war losses have always been federal losses.
Subject: TERRORISM REINSURANCE
While many characterize this as another corporate subsidy, they forget the United States is at War and war losses have always been federal losses.