WASHINGTON, April 17 -- Rep. Carolyn B. Maloney, D-N.Y. (12th CD), issued the following news release:
Congresswoman Carolyn B. Maloney (NY-12), Ranking Member of the House Financial Services Subcommittee on Capital Markets and GSEs, today released the following statement on the President's Working Group on Financial Markets (PWG) report and analysis to Congress on terrorism risk insurance.
"This report underscores the need for immediate Congressional action to extend the Terrorism Risk Insurance Act (TRIA). It confirms that the market for terrorism risk insurance is tightening and that without an extension of TRIA, coverage will be less available, more costly and less comprehensive. This would be particularly costly for my constituents in New York.
"Costs are already rising and businesses in my district are struggling to find adequate insurance. It is absolutely necessary that Congress take expeditious action before TRIA expires at the end of this year. I am continuing to work with members of the Financial Services Committee to address this issue."
After the 9/11 terrorist attacks, many insurance companies excluded terrorism events from their insurance policies. As a result, Congress passed TRIA as a three year temporary program in 2002, which created a federal backstop to protect against terrorism related losses. Congress extended the program for two additional years in 2005 and for seven additional years in 2007. TRIA is currently scheduled to expire on December 31, 2014. Maloney is the lead Democratic co-sponsor of the TRIA Reauthorization Act of 2013 (H.R. 508), which would extend the Terrorism Risk Insurance Program for five years, through December 31, 2019.
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