Washington--The National Conference of State Legislatures (NCSL) late last week asked Congress to "pass a clean, short-term" extension of the Terrorism Risk Insurance Act before it expires Dec. 31.
"TRIA's critical importance to our nation's economy recommends an immediate short-term extension to give stakeholders the needed time to craft a long-term solution," two officials of NCSL said in letters to members of the House and Senate leadership, both Republican and Democrat, urging renewal of the federal backstop for terrorism insurance losses.
The letter was signed by State Sen. Ruth Teichman, R-Stafford, chairperson of the Kansas Senate Financial Institutions and Insurance Committee and chair of the NCSL Financial Services Committee, and Ohio State Rep. Keith Faber, R-Celina, vice chairman of the NCSL Financial Services panel.
The letter is among several being written by stakeholders designed to prod Congress into action before it leaves. Draft legislation dealing with the extension issue is expected to surface shortly in both the House and the Senate, perhaps before week's end.
Congress is expected to remain in session beyond Thanksgiving and into December, but a TRIA extension joins a host of must-do and controversial bills Congress must deal with before it departs.
"State legislatures applaud the efforts of Congressional leaders and the administration in pursuing reforms that will promote the development of the private terrorism insurance market and recognize the temporary nature of the program," the NCSL letter said.
"NCSL believes that some reforms can and should be included in a short-term extension, but a permanent solution that effectively transitions to a market-based system founded on effective terrorism pricing models and private sector capacity will take study and deliberation, which the pending expiration does not allow," the letter added.
"We also believe that TRIA should be extended cleanly and not used as a vehicle for other more controversial measures that will weigh it down and risk exposing our nation's economic security," it said.
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