The National Association of Professional Insurance Agents has issued a statement praising “leaders and members of the House Financial Services Committee who sent a letter to Treasury Secretary John Snow urging the extension of the ‘make available’ provision to the Terrorism Risk Insurance Program authorized by Congress under the Terrorism Risk Insurance Act of 2002.”
The PIA bulletin noted that the “provision requires all U.S. domestic direct commercial lines carriers to offer their commercial lines insureds TRIA coverage. Under TRIA, the Secretary of the Treasury has the authority to expend the provision for one year beyond its scheduled expiration at the end of 2004. TRIA itself is set to expire at the end of 2005.”
Chairman Michael G. Oxley (R-Ohio), Subcommittee Chairs Richard H. Baker (R-Louisiana) and Sue W. Kelly (R-New York) along with 15 committee members sent the letter to Snow. It noted: “An extension will ensure that terrorism coverage is widely available while Treasury continues its good work and while private market solutions are still being developed.”
Peter Bizzozero, PIA assistant vice president of federal affairs said that his organization “applauds Chairman Oxley and the committee members for urging Secretary Snow to use the authority granted to him under the Terrorism Risk Insurance Act to ensure the continued availability of coverage while Congress considers renewal of the Act. PIA strongly urges Congress to continue the Terrorism Risk Insurance Act (TRIA) in order to ensure the continued viability of the existing domestic insurance market. We favor the development of long- term financing solutions; however, these arrangements must be coupled with extension of the existing federal backstop.”
The Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises and the Subcommittee on Oversight and Investigations will hold a joint hearing entitled “A Review of TRIA and its Effect on the Economy: Helping America Move Forward” at 10 a.m. on Wednesday, April 28, 2004, in room 2128 Rayburn House Office Building, to examine how TRIA helped to avoid problems in the commercial insurance sector.
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