TRIREA, the House’s plan to extend and expand federal terrorism backstop coverage, is reaching a critical point in legislation process. Adding a bit of chaos to the debate on TRIREA is an OMB memo summarizing one part of the Executive Branch’s thoughts on the bill. From Business Insurance:
The OMB statement said the House bill “effectively makes TRIA permanent, increases the role of the federal government, and expands the scope of coverage well beyond the point where it is needed.” If the bill were to reach the president in its current form, “his senior advisors would recommend that he veto the bill,” according to the OMB statement.
I think many insurers, are willing to tolerate some of the bill’s shortcomings, given that it would seem to end the new tradition of figuring out what to do about terror cover on renewing policies every other year.
I tend to agree—that the over-breadth in what’s proposed to be covered under TRIREA is more than offset by the 15-year extension.
Now, if only we could get the Administration to come back to reality and see the concern as having a longer lifespan than they’d like to believe….