Governors Urge Extending Terrorism Insurance Act

Twenty-eight governors this week signed a letter urging congressional leaders to extend the Terrorism Risk Insurance Act, the Hartford Courant reported yesterday (see GSN, Aug. 5).

The legislation, passed in late 2002 to protect insurers from catastrophic terrorism claims, indexes the claims based on the amount of the insurer’s annual earned premiums. It is set to expire at the end of the year.

The Treasury Department in June said the subsidy is too costly. The Senate, however, is considering a two-year extension of the act, according to the Courant.

The governors’ letter urges Congress to consider a temporary extension “that ultimately leads to a viable long-term solution providing adequate protection and reduced taxpayer exposure” (Diane Levick, Hartford Courant, Nov. 10).

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