June 19, 2014

House panel poised to clear TRIA, FSOC bills

June 20, 2014 – The House Financial Services Committee has marked up and is expected today to approve H.R. 4871, to reauthorize the Terrorism Risk Insurance Act for five years, and two measures promoting transparency at the Financial Stability Oversight Council.

NAFCU has expressed its support for the "FSOC Transparency and Accountability Act," H.R. 4387, which was introduced by Rep. Scott Garrett, R-NJ, and would require the FSOC to hold open meetings and comply with the requirements outlined in the Federal Advisory Committee Act.

TRIA was created after 9/11, when insurers stopped offering terrorism risk coverage as part of their commercial property losses. The statute created a federal government backstop for terrorism risk coverage and has been reauthorized twice. The federal program is currently set to expire Dec. 31. An amendment from Rep. Maxine Waters, D-Calif., which would allow a clean 10-year extension of the current program is expected to fail.

The House bill to extend TRIA , H.R. 4871, was introduced by Rep. Randy Neugebauer, R-Texas, who is the chairman of the House Financial Services Subcommittee on Housing and Insurance. Companion legislation, S. 2244, was introduced in the Senate by Sen. Chuck Schumer, D-N.Y., and was reported out favorably by the Senate Banking Committee earlier this month. It has 23 cosponsors and awaits action of the full Senate.