Washington
The House Financial Services Committee approved a Terrorism Risk Insurance Act reauthorization bill last week after agreeing to add group life to the program. The bill, H.R. 4634, would extend the TRIA safety net program for 2 years, until Dec. 31, 2007.
The American Council of Life Insurers, Washington, is praising the decision to add group life to TRIA.
"ACLI has long argued that TRIA is seriously flawed because of its failure to cover the lives of people," ACLI President Frank Keating said in a statement. "It is sound policy to make sure insurers can offer coverage for bricks and mortar, but it would be even sounder public policy to make sure American workers lives are protected in TRIA as well."
The Financial Services Committees actions on the TRIA reauthorization bill show it understands the risk millions of workers could face as a result of lack of access to reasonably priced catastrophe reinsurance for acts of terrorism, Keating said.
"By reauthorizing TRIA with group life, Congress will provide a mechanism for calming life insurance markets should another attack occur," Keating said. "If no attack occurs, there will be no expense to government or industry. If an attack does occur, group life will be covered by the terrorism risk insurance pool and insurers will be able to maintain protections for American workers and their families, most of whom are covered by group life insurance plans."
Philmore Anderson, a spokesman for the Group Life Coalition, which represents insurers that sell group life, applauded the committees success at adding group life to TRIA and said the coalition will work to get the bill moved quickly through Congress.
The "bipartisan effort to extend TRIA and group life comes at a critical time as this legislation protects the economy, jobs, buildings and, most importantly, peoples financial security," he said.
