RIMS: SENATE INTRODUCTION OF TRIA A POSITIVE FIRST STEP TO REAUTHORIZING CRITICAL LEGISLATION
(NEW YORK) April 11, 2014 – RIMS, the risk management society™, commends Senators Schumer (D-NY), Heller (R-NV), Reed (D-RI), Kirk (R-IL), Murphy (D-CT) and Johanns (R-NE) for introducing a bi-partisan agreement on a long term TRIA extension.
“News that the Senate has begun the process of reauthorizing TRIA is encouraging but we understand that this introduction is just the initial step of a long legislative process,” said RIMS President Carolyn Snow. “The Senators who have introduced this bill understand the consequences of TRIA’s expiration and we applaud them for their foresight. We remain hopeful that the House Financial Services Committee also realizes the impact TRIA’s expiration will have on all businesses across the U.S.”
RIMS continues to support the following principles in development of a long-term solution for TRIA:
- Without a TRIA-type program, many entities will simply be self-insured due to lack of availability or affordability of coverage or both - leaving their companies and their workers exposed to an event that could bankrupt the company.
- The new program should ensure an orderly and efficient response to minimize any market disruptions and ensure benefits are available to any victims - individuals or companies – from a catastrophic loss scenario.
- A private and public partnership provides the best alternative to addressing the long-term needs of availability and affordability of insurance to cover acts of terrorism.
- The solution needs to address the long-term availability and affordability of insurance coverage for nuclear, biological, chemical, and radiological events caused by terrorism.
- All commercial property, workers’ compensation, auto and general liability lines should be included in any new plan.
- Insurance companies writing commercial lines should be required to participate in the program and be required to make coverage available for acts of terrorism.