The New York City Council Committee on State and Federal Legislation on June 17 proposed a resolution supporting the extension of the Terrorism Risk Insurance Act.
Resolution (Res 1806-2013) urges Congress to protect the economic interests of New Yorkers and Americans by extending the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIA).
The full city council is expected to act on the measure in coming weeks. The resolution was sponsored by Christine C. Quinn, City Council president, who is from Manhattan; Helen D. Foster, representing the Bronx; and Domenic M. Recchhia, Jr., representing Brooklyn.
"The terrorist attack in Boston has shown that New York City and other major cities in the United States remain potential targets for terrorism. The extension of TRIA is essential for the continued protection against terrorism as well as essential to the continued economic growth of New York City and the nation," said Foster. "New York City continues to be the target of terrorist plots as are countless other major cities across the country. It is imperative that Congress and President Obama extend this important legislation immediately. We must continue to be prepared for the future!"
TRIA was extended in 2007 for seven years. It sunsets Dec. 31, 2014 if not extended.
Among others, the Property Casualty Insurers Association of America (PCI) and the Risk and Insurance Management Society (RIMS), issued statements praising the New York City Council's decision to take up the issue. PCI urged the City Council to move quickly. RIMS submitted testimony.
"The inability to secure sufficient insurance coverage for acts of terrorism could result in the inability to secure financing for future construction projects," says RIMS testimony by Board Member and New York City Chapter Member Lori Seidenberg. "Wthout adequate availability of terrorism coverage many companies would not be able to comply with lender covenants within mortgages that require coverage. This, in turn, would impede the ability to fund real estate transactions and would limit the normal functions of the real estate market."
Rep. Carolyn Maloney, D-N.Y., was among those testified in favor of the resolution.
"This is a commonsense, non-partisan safeguard for our country and our economy, and I applaud the City Council for urging Congress to act on it," said Maloney, the chief Democratic sponsor of bipartisan legislation introduced in the House in February, the TRIA Reauthorization Act of 2013, H.R. 508, which would extend the program for 5 years. The lead Republican sponsor is Rep. Michael Grimm. The bill has 49 co-sponsors.
In her testimony, Maloney said a lack of terrorism insurance after 9-11 "meant that over $15 billion in real estate deals were stalled or canceled, which affected over 300,000 jobs. If we don't reauthorize TRIA, construction projects will again be canceled, and even more jobs will be lost."
"Speaker Quinn, Chairwoman Foster and Councilman Recchia are absolutely right to send a message to Congress that it's time to extend TRIA" said Kristina Baldwin, vice president of PCI, in a statement. "TRIA is about economic development and jobs, providing an important backstop so important projects can continue to move forward with appropriate and adequate insurance coverage."
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