Terrorism Insurance Stalls in Congress
A significant piece of legislation providing emergency insurance against massive terrorist attack has been stalled in congress. The Terrorism Risk Insurance Act (TRIA) is due to expire at the end of the year.
The senate passed the bill to extend TRIA by 7 years, but it has stalled in congress due to demands by Republicans that it be tied to spending cuts.
The program was initially established after the September 11 attacks in 2001 and allows the US government to cover insurance industry losses from damage caused by terrorist attacks.
That gives the insurance industry and businesses piece of mind that their financial future is safe in the event of a terrorist attack. The business community is understandably upset by the delay in renewing the insurance and is lobbying congress to have the legislation passed before 2015.
Flood Insurance Program Changes Blocked
In Washington DC, Republican Bill Cassidy is attempting to block the upcoming increases in flood insurance premiums by blocking money which was going to the Federal Emergency Management Administration to implement the changes.
Cassidy is trying to block funds which which include FEMA financing. If the funds do not come through for FEMA they will be unable to make their change to the flood insurance law that allows for significant increases for insurance premiums for some properties. The properties affected are mostly ones out of compliance with flood resistance requirements.
Politicians in Louisiana are suggesting that properties that were previously marked as being compliant with previous flood prevention requirements are no longer being considered compliant by FEMA. So through no fault of the homeowners, they have been re-zoned and are now considered non-compliant and required to pay larger flood insurance premiums.
The 2012 changes to the flood insurance program were aimed at making the program more sustainable, particularly in the wake of recent large hurricanes and flood events. The changes were also aimed at making the program more accessible for property owners.
Cassidy’s attemot at blocking FEMA funding measures will considered on Wednesday on the house floor during a homeland security spending bill debate.
He is not the only one attempting to block the changes to the flood insurance program with Senator Mary Landrieu also attempting to delay the bill. Landrieu also has other legislation aimed at blocking any increases to flood insurance premiums and is backed by other politicians from the south.