TRIA Extension Bill Passes in House, Heads to Senate

At midnight on Dec. 31, the federal Terrorism Risk Insurance Act expired (TRIA), ending a financial backstop for private insurance companies and yanking out the foundation of the terrorism-insurance industry. Businesses and insurers were left vulnerable, waiting for action from the new Congress to reauthorize the terrorism act.

On Jan. 7, 2015, the U.S. House of Representatives overwhelmingly (by a 416-to-5 vote) approved a bill that would extend TRIA until the end of 2020. The bill also includes a provision that will change part of the 2010 Dodd-Frank financial law, prohibiting regulators from imposing margin requirements on non-financial users of derivatives.

Senate Majority Leader Mitch McConnell promised quick action and delivered with a 93-4 vote the following day.

The President is expected to sign the bill quickly. S