NAIC Commends Senate Action On Terrorism Risk Insurance Legislation

 

The following was just released by the National Association of Insurance Commissioners (“NAIC”) regarding terrorism risk insurance legislation:

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FOR IMMEDIATE RELEASE

NAIC COMMENDS SENATE ACTION ON TERRORISM RISK INSURANCE LEGISLATION

Urges Reauthorization of Program Before Year-End

KANSAS CITY, Mo. (Nov. 16, 2007) — The National Association of Insurance Commissioners (NAIC) commends the U.S. Senate for unanimously passing legislation to extend the federal Terrorism Risk Insurance Program (TRIP).

The NAIC recognizes Senate Banking Committee Chairman Christopher J. Dodd (D-Ct.), Ranking Member Richard C. Shelby (R-Ala.) and the Senate leadership for their bipartisan efforts and swift action on the measure. TRIP is set to expire at midnight Dec. 31, 2007, unless the program is reauthorized by the U.S. Congress.

While the U.S. House and Senate have each passed their own reauthorization language, the bills must first be reconciled and then signed into law by President Bush before year-end to ensure economic stability.

In the absence of a private market mechanism, TRIP provides economic stability by making terrorism coverage available. The program represents an effective partnership between the state-based insurance system and the federal government.

“We are pleased that the Senate passed this legislation unanimously,” said NAIC President and Alabama Insurance Commissioner Walter Bell. “TRIP is critical to the health of our private markets and the economic strength of our nation. I encourage both chambers of the Congress to work cooperatively to reauthorize the Terrorism Risk Insurance Program before the end of 2007.”

 
About the NAIC
Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC at www.naic.org/press_home.htm.

 

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