(Washington, DC) - U.S. Rep. Gary Ackerman (D-Queens/L.I.) today announced that several key provisions essential to the rebuilding of Ground Zero have been included in legislation to renew the federal terrorism insurance program created after the 9/11 attacks. The measure, entitled the Terrorism Risk Insurance Revision and Extension Act, was introduced this afternoon and is expected to be passed within the next several months. Ackerman, a senior member of the Financial Services Committee, has been a key figure pressing for an extended reauthorization of the Terrorism Risk Insurance Act (TRIA) and the inclusion of re-development provisions of particular significance to New York City.

After the devastating 9/11 attacks, many insurance companies eliminated terrorism insurance from their policies. In response, Congress passed TRIA, which created an insurance backstop from the federal government to protect against terrorism-related loses. The measure was extended for two years in 2005 and expires at the end of this year.

“The extension of TRIA is vital to our economy and is an absolute prerequisite to the rebuilding of Ground Zero” said Ackerman. “Failure to extend the program would be been a disaster. Without terrorism insurance, banks will not lend money, developers will not build and the former World Trade Center site would be left as ruin in the heart of New York City. That is absolutely unacceptable. Failure to rebuild at Ground Zero due to a lack of [available] necessary terrorism insurance would represent another victory for the despicable terrorists who attacked us on 9/11.” 

The newly introduced legislation provides a long term extension for TRIA—10 years— instead of another short term extension. It also includes coverage for both foreign and domestic acts of terrorism. The current version only covers foreign terrorist attacks.

In addition, the renewal legislation for TRIA contains several important changes and provisions to benefit sites that have been previously attacked by terrorists such as Ground Zero. In particular, there are provisions which provide lower deductibles for insurance companies that agree to write terrorism insurance for properties already affected by terrorist attacks, and lower thresholds at which the federal government would provide a backstop to insurance companies for sites that suffer subsequent acts of terrorism. Ackerman, joined by the other 28 members of the New York State Congressional delegation earlier this month insisted that any extension of TRIA include these provisions. Their appeal was made in a bi-partisan letter to the Chair and Ranking Members of the Financial Services Committee, its Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises and other key Members heavily involved in the reauthorization process.

Renewing TRIA was the subject of a Congressional field hearing held at City Hall in New York City this past March. With Ackerman holding the gavel, the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises heard testimony in support of TRIA’s extension from New York Mayor Michael Bloomberg, Senator Charles Schumer (D-NY) and a panel of leading developers, insurers, reinsurers and real estate investors. Without exception, the witnesses agreed that terrorism reinsurance had been critical to New York City's post-9/11 recovery, and would remain a critical to the national economy for the foreseeable future.

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