Big "I" Praises House Passage of Terrorism Insurance Bill & NARAB II
Legislation would extend TRIA program for six years and includes agent licensing reform.
The Independent Insurance Agents & Brokers of America (IIABA or the Big "I") today praised the U.S. House of Representatives for passing an amendment in the nature of a substitute to S. 2244, the "Terrorism Risk Insurance Program Reauthorization Act of 2014." The legislation would extend the Terrorism Risk Insurance Act (TRIA) program for six years and includes the National Association of Registered Agents and Brokers (NARAB II) legislation that would establish a permanent NARAB.
"This Legislation further demonstrates the commitment by a strong group of bipartisan members of Congress to reauthorizing the TRIA program, as it is vitally important to the U.S. economy, and the Big 'I' is grateful for today's action," says Bob Rusbuldt, Big "I" president & CEO. "This bill is important to ensure stability in the insurance, real estate and lending markets, as well as providing needed agent and broker licensing reform on a voluntary basis. We are optimistic that the Senate will soon pass this crucial legislation so it can be sent to the president's desk as soon as possible."
In addition to reauthorizing the TRIA program for six years, the bill would also raise the trigger amount needed in total losses before the TRIA program kicks in from the current $100 million to $200 million, over five years, beginning in calendar year 2016. Over five years, starting Jan. 1, 2016, the mandatory recoupment would also go from $27.5 billion to $37.5 billion, increasing by $2 billion each year. For all events, the bill would raise the private industry recoupment total from the current 133% of covered losses to 140% of covered losses.
"The Big 'I' is also thankful that the House TRIA bill includes the National Association of Registered Agents and Brokers legislation (NARAB II)," Charles Symington, Big "I" senior vice president of external and government affairs. "We would like to thank House Financial Services Committee Chairman Jeb Hensarling (R-Texas) and Insurance Subcommittee Chair Randy Neugebauer (R-Texas) for their leadership in moving it through the House on two separate occasions this Congress and particularly want to highlight Rep. Neugebauer's steadfast support of the bill."
NARAB II would achieve much needed reciprocity in producer licensing and help policyholders by permitting greater competition among agents and brokers. This legislation would build upon regulatory experience at the state level, promote greater consistency in agent and agency licensing, and ease the burden that many agents face in doing business across state lines.
