This was the first bill passed by the 114th session of the U.S. Congress
On January, 12, 2014 President Obama signed the Terrorism Risk Insurance Act (TRIA) and the NARAB II legislation into law. Here is the official statement by the White House Press Secretary:
H.R. 26, the “Terrorism Risk Insurance Program Reauthorization Act of 2015,” which extends authorization of the Terrorism Risk Insurance Program through December 31, 2020, and makes modifications to the Program; establishes a National Association of Registered Agents and Brokers; and exempts certain swap participants from capital requirements established under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Both the Congress and Senate passed the Terrorism Risk Insurance Act (TRIA) program which established the National Association of Registered Agents and Brokers (NARAB II) late last week and which was in limbo after having expired on December 31, 2014. Earlier in the week the House passed the legislation by a vote of 416 to 5. The Senate quickly followed suit with a 93 to 4 vote. The legislation will now head on over to the President’s desk for enactment.
Calling it one of the biggest legislative victories for the Independent Insurance Agents & Brokers of America (Big “I”), Bob Rusbuldt, Big “I” president & CEO was ecstatic.
“The Big ‘I’ is proud that all our hard work on TRIA and NARAB II has come to fruition and will benefit thousands of small businesses and insurance consumers across the country,” says Bob Rusbuldt, Big “I” president & CEO. “Today’s bipartisan action by the Senate on both TRIA and NARAB II, in one of the first acts of the new Congress, represents a culmination of years of hard work of the Big ‘I’ and our small business members, and I offer our members a sincere and heartfelt congratulations. Long awaited reform on non-resident licensing for agents is finally coming.”
Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA) was also happy with Congress’ quick actions.
The Senate’s overwhelming bipartisan vote today following yesterday’s nearly unanimous House vote and the anticipated swift signing of H.R. 26 by the President assures the markets that the terrorism risk insurance program will remain in place protecting our nation’s economy, policyholders and taxpayers. Congress’ timely reauthorization of TRIA will preserve a well-functioning private terrorism insurance marketplace
The Property Casualty Insurers Association of American also applauded the passage of TRIA and NARAB II.
“PCI applauds the Senate for making TRIA the very first bill to be enacted by the 114th Congress. We appreciate the leadership of Senator Mike Crapo (R-ID) and former Senator Tim Johnson (D-SD) for their work in developing a solid piece of legislation. We thank Majority Leader Mitch McConnell (R-KY) and incoming Banking Committee Chair Richard Shelby (R-AL) for bringing the bill to the Senate floor expeditiously. We also thank Senator Chuck Schumer (D-NY), Senator Mark Kirk (R-IL), and Senator Dean Heller (R-NV) for their tireless efforts as well as the many Senators who support TRIA,” said Sampson. “I am grateful that Members of both chambers were able to quickly come together on a bipartisan basis to achieve a hard won compromise to maintain America’s economic resiliency plan to recover from terrorist attacks.
“PCI is thankful to Congress for working with us on this priority for policyholders across America and our member companies. This vote is a significant win for consumers, taxpayers, and our members. This long-term legislation will minimize market disruptions, maintain the availability and affordability of terrorism insurance for consumers, and protect taxpayers. We also are grateful that NARAB II was included in the legislation. We urge President Obama to sign this legislation as soon as possible,” concluded Sampson.
In addition to reauthorizing the TRIA program for six years, the bill would also raise the trigger amount needed in total losses before the TRIA program kicks in from the current $100 million to $200 million, over five years, beginning in calendar year 2016. Also over five years, starting Jan. 1, 2016, the mandatory recoupment would also go from $27.5 billion to $37.5 billion, increasing by $2 billion each year. For all events, the bill would raise the private industry recoupment total from the current 133% of covered losses to 140% of covered losses. Once signed into law, it will retroactively restore the federal reinsurance backstop for policyholders and the insurance market in the event of a catastrophic act of terror on American soil.NARAB II would achieve much needed reciprocity in producer licensing and help policyholders by permitting greater competition among agents and brokers. This legislation would build upon regulatory experience at the state level, promote greater consistency in non-resident agent and agency licensing, ease the burden that many agents face in doing business across state lines, and increase consumer choice.