H.R. 2761, requires insurers to make coverage available to property and casualty and group life insurance policyholders for losses resulting from domestic and foreign source terrorism and on January 1, 2009 the program is expanded to require insurance companies to “make available”  insurance coverage for terrorism involving nuclear, biological, chemical, and radiological (NBCR) attacks. 

“Safeguarding the physical safety and well-being of all Americans is of paramount importance; and action by the House to extend the Terrorism Insurance Program ensures that any efforts to promote safety are not sacrificed,” said Kieran P. Quinn, CMB, MBA’s Chairman Elect. “MBA is hopeful that this important piece of legislation maintains traction; and we remain committed to working with Congress and the Administration on this very important legislation.” 

With a final vote of 312 to 110, H.R. 2761 is a crucial step toward making long-term terrorism insurance available and affordable.

MBA and the Coalition to Insure Against Terrorism (CIAT), of which MBA is a member, strongly support the bill, which would:

• Extend the Terrorism Risk Insurance Act, originally passed in 2002, with current co-payments and deductibles for conventional terrorism acts;
• Change TRIA's definition of terrorism to include acts of domestic terrorism;
• Set the program trigger at $50 million which is down from the current $100 million;
• Decrease deductibles and triggers for areas previously impacted by a significant terrorist attack; and,
• Continue to require studies of the development of a private market for terrorism risk insurance.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.