Statement on House Financial Services Committee Approval of TRIA Legislation

6/20/14 Statement from NAIC President and North Dakota Insurance Commissioner Adam Hamm

We appreciate the House Financial Services Committee’s action today to approve legislation to reauthorize the terrorism risk insurance program. With TRIA’s expiration looming at the end of this year, it remains a critical priority that Congress move promptly to ensure a sustained and stable marketplace for terrorism insurance.

While we welcome this step forward, we ask that Congress further consider the implications on the capacity of insurance markets of bifurcating the treatment of conventional and nuclear, biological, and chemical attacks, and providing certain small insurers the option to opt-out of the “mandatory make available” coverage provisions. We continue to support a long-term TRIA reauthorization and look forward to working with Congress on these matters.

We are also pleased to see the inclusion of National Association of Registered Agents and Brokers Reform Act (NARAB II) as an amendment to the TRIA bill. The NAIC applauds the committee for moving forward with this issue, which the NAIC has long supported.