The House of Representatives’ Financial Services Committee has approved TRIREA and the full House may vote on it later this week.
The White House, however, has released a statement stating that the Administration would likely veto TRIREA if it is presented to the President in its current form. As set forth in the attached Statement of Administration Policy, the White House takes issue with the following components of TRIREA:
1) TRIREA calls for a 15-year extension of the Program. The Administration believes
that the Program should be temporary and short-term. The Statement expresses the
Administration’s view that TRIA was originally intended to be a temporary program
“to adapt in the short run” after September 11.
2) TRIREA calls for the extension of the Program to include group life insurance and
domestic terrorism coverage. The Administration believes that there should be no
expansion of the Program.
3) TRIREA calls for an increase in the government’s share of private insurance losses
from nuclear, biological, chemical and radiological (NBCR) events through the
reduction of industry deductibles and reduction of co-payments for such losses. The
Administration believes that, rather than an increase in the government’s share of
such losses, private sector retentions should be increased.
We will continue to monitor TRIA-related developments and provide updates at InsureReinsure.com.