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For Immediate Release: November 16, 2005

Contact:	Steve Adamske, 202-225-7141

DEMOCRATS APPLAUD ACTION ON TRIA

Washington, DC - Democratic members of the House Financial Services Committee, led by Ranking Member Barney Frank and Reps. Kanjorski, Capuano, Israel, Crowley, Maloney, and Gutierrez today applauded the committee's action on extending the Terrorism Risk Insurance Act (TRIA) program.  The act is set to expire at the end of this year unless Congress takes action, and today's committee consideration was an important step for this needed program.  Democrats, through several letters this year, had urged Financial Services Committee Chairman Mike Oxley to hold hearings and committee consideration of TRIA before the end of 2005.  As a result, the TRIA extension was passed today in an overwhelmingly bipartisan vote of 64-3.   The original legislation required insurers to offer coverage for terrorism risks, and created a federal reinsurance program for insurers against the risk of losses from international terrorist attacks. 

Today's bill extends the TRIA program for three years, and establishes a commission to study long-term solutions to terrorism risk insurance and report on recommendations by December 31, 2006.  Democrats were successful in ensuring that a member of the September 11 families will sit on the committee.  Democrats also worked with the committee to ensure the bill included lower deductibles on worker's compensation, important group life provisions and coverage of both domestic and international terrorist acts.  An effort to preempt state insurance laws regarding regulation of insurance rates and forms was defeated by Democratic opposition.

"We need to keep in perspective that this bill is necessary for economic development and to protect property owners, building tenants, developers and people who work or live in high risk areas," said Congressman Frank.  "Now that the Senate has also reached a compromise, I am hopeful we can move this legislation to the President's desk with speed."

"Extending TRIA will allow the insurance industry more time to develop its own models to price terrorism insurance. We all recognize the need for a permanent solution, but we cannot walk away from our short-term responsibility of providing economic stabilization," Congressman Paul E. Kanjorski said.

"I am pleased that we were finally able to advance TRIA after more than a year of working to prevent the expiration of this critical law. Swift passage of the bill will ensure that terrorism insurance remains available and affordable for those who need it. It is time for the Bush Administration to join us rather than resisting bipartisan efforts to extend and reform TRIA," stated Congressman Mike Capuano. 

"Now is not the time to play Russian roulette with our economy. TRIA is an essential safety net for the insurance industry, our financial markets and the economy and without it New York City would have faced a far worse downturn following September 11^th," said Congressman Crowley. 

"I'm pleased to see that the Financial Services Committee has finally heeded our call to move the terrorism insurance legislation," Congressman Steve Israel said. "We've been down this road before though and the House leadership never allowed the bill to come up for consideration. Time is running out and this bill must pass before the program expires, leaving New York businesses out to dry." 

"In the face of the terrorist threat, this program has helped spur economic development not only around Ground Zero, but across the country. There is no doubt it's still needed. I applaud the Financial Services Committee for taking a leadership role in getting this done and wish that the administration would share in the urgency," said Congresswoman Maloney.

Congressman Gutierrez said:  "I am very pleased that we have finally passed this crucial TRIA extension, which will prevent the chill of development in our cities and provide necessary stability for our nation's economy in a post 9-11 world."

 

 

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The Committee oversees all components of the nation's housing and financial services sectors including banking, insurance, real estate, public and assisted housing, and securities. The Committee continually reviews the laws and programs relating to the U.S. Department of Housing and Urban Development, the Federal Reserve Bank, the Federal Deposit Insurance Corporation, Fannie Mae and Freddie Mac, and international development and finance agencies such as the World Bank and the International Monetary Fund. The Committee also ensures enforcement of housing and consumer protection laws such as the U.S. Housing Act, the Truth In Lending Act, the Housing and Community Development Act, the Fair Credit Reporting Act, the Real Estate Settlement Procedures Act, the Community Reinvestment Act, and financial privacy laws.