Senate Republicans hash out 'unpleasant choice' on TRIA: would extension undermine private market development'?(A 'Bad Law')(Terrorism Risk Insurance Act of 2002)(Federal Terrorism Reinsurance: A Solution Of A Problem)

National Underwriter Property & Casualty-Risk & Benefits Management, June, 2004 by Brostoff, Steven

THE TERRORISM RISK INSURANCE Act might be an example of a "bad law," forcing Congress to make an "unpleasant choice" on whether to extend it or let it expire, according to a new report from a major Senate Republican committee. The report from the Senate Republican Policy Committee, chaired by Sen.

Jon L. Kyl, R-Ariz., reaches no conclusion on whether TRIA should be extended. However, the report said Congress will likely have to make a hard choice: * Either allow TRIA to expire and subject the market to uncertainty, higher prices and the potential for insurer solvency; * Or extend a program that likely will prevent development of a private sector solution. The report--titled "Federal Terrorism Reinsurance: A Solution Of A Problem"--sums up the arguments...

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