FOR IMMEDIATE RELEASE
GOVERNOR PATAKI LEADS EFFORT FOR RENEWAL OF THE TERRORISM RISK INSURANCE ACT
Pataki and 27 Other Governors Call for Temporary Extension that Ultimately Leads to Viable Long-term Solution
Governor George E. Pataki is leading the effort of 28 Governors around the nation, writing to Senate Majority Leader Frist, House Speaker Hastert, Senate Minority Leader Reid and House Minority Leader Pelosi calling for the expeditious renewal of the Terrorism Risk Insurance Act (TRIA) program to ensure New Yorks and the nations businesses continue to be protected against the threat of terrorist attack. TRIA is set to expire on December 31, 2005.
"Terrorism coverage is an integral part of any businesses risk management efforts. With TRIA due to expire in less than two months, I am leading the call for immediate Congressional action to ensure the availability of sufficient terrorism coverage and avert property/casualty insurance market disruptions," said Governor Pataki. "The expiration of TRIA would severely impact New York's construction and real estate industries and would have detrimental effects on the rebuilding of Lower Manhattan. Ensuring our insurance marketplace remains sound is critical to continuing to foster a full economic recovery from the September 11th attacks and sustaining overall growth of the national economy."
"In absence of TRIA, consumers or their primary insurers will be ultimately left to assume and address terrorism exposure. New York and the nations businesses will be forced to make economic choices when faced with high premiums for less coverage or more dramatically with the notion of going without coverage. TRIA has accomplished its primary mission, creating a financial mechanism whereby private-sector insurers after the satisfaction of an insurance company deductible and the Federal Government shares equitably the cost of paying losses in the wake of a major terrorist attack. While we continue to seek a viable long-term solution, we must ensure the coverages are available in the short-term," the Governor added.
The Terrorism Risk Insurance Act of 2002 was signed into law on November 26, 2002. The law established the federal Terrorism Insurance Program that provides for a system of shared public and private compensation for insured losses resulting from acts of terrorism, in order to protect consumers by addressing market disruptions and ensure the continued widespread availability and affordability of property and casualty insurance for terrorism risk.
A copy of the text of the letter from all 28 Governors is attached.