Terrorism Risk Insurance Act Signed into Law
As hoped, the House of Representatives and Senate passed the extension of the Terrorism Risk Insurance Act the second and third day of the new session. We are pleased to report that TRIA was signed by President Obama Monday evening. The act reauthorizes the program for 6 years, with a few changes.
The deductible trigger is increasing from $100 million to $200 million at a rate of 20% per year. The insurance company co-payment will increase from 15% to 20%. Post-event by the federal government will increase incrementally following an event.
After Congress adjourned last year without taking action, our insurance companies chose to take a wait and see approach and they turned out to be correct. The extension of TRIA resulted in “business as usual”. Your Lawley team will continue to keep you informed of industry and legislative issues that affect your insurance program. If you have any questions, please contact us.
