Source: Joni Ernst’s Facebook Page
Following her first series of votes on the Senate floor, U.S. Senator Joni Ernst (R-IA) issued the following statement after voting in favor of reauthorizing the Terrorism Risk Insurance Act (TRIA). This six year reauthorization voted on in the Senate today protects taxpayers by shifting more of the financial burden of potential terrorism-related losses from the government to the insurance market.
“This reauthorization provides important safeguards for hardworking American taxpayers and businesses while also rolling back unnecessary regulations hurting our agricultural community,” Ernst said.
On Wednesday, the House of Representatives backed reauthorization of TRIA with overwhelming bipartisan support. Authorization for the program lapsed at the end of 2014 after the Senate adjourned without voting on the measure.
BACKGROUND
- TRIA was initially implemented following the attacks on September 11, 2001. The original program ensured the government would act as a reinsurer for insurance companies if the damage surpassed $100 million.
- This six year reauthorization voted on in the Senate today protects taxpayers by shifting more of the financial burden of potential terrorism-related losses from the government to the insurance market. The program now ensures the government will act as a reinsurer for insurance companies if the damage surpassed $200 million. It also increases the percentage the Secretary of Treasury would recoup from the insurance industry from 133 percent to 140 percent.
- A measure in the bill ends an existing Dodd-Frank Act interpretation and now allows for non-financial institutions, such as agricultural and energy companies, to be exempt from posting collateral in situations like when using derivatives to mitigate risk. There is broad support for TRIA and the Dodd-Frank fix among businesses and organizations including John Deere and the Chamber of Commerce.
- TRIA passed the House of Representatives by a vote of 416 to 5. It passed the Senate 93 to 4.