On a unanimous vote AJR 34 (Cooley; D-Rancho Cordova), which urges Congress to extend the Terrorism Risk Insurance Program for U. S. economic stability and continuity following a terrorist attack, passed the Assembly Insurance Committee.
The Terrorism Risk Insurance Act (TRIA) is part of a Federal plan for economic continuity and recovery after a severe terrorist attack on the United States. Enacted following the September 11th attacks, the plan rapidly stabilized the insurance market and broke through the paralysis that plagued the economy, particularly in construction, real estate, finance and other vital sectors. TRIA requires insurers to offer coverage for terrorism to policyholders in certain commercial insurance lines. Policyholders are free to accept or reject the offer, but terrorism coverage may not be excluded in these lines unless the policyholder has had the opportunity to purchase such coverage on the same terms, amounts and limitations applicable to other perils.
Although this is a non-binding resolution, it calls attention to the need to pass TRIA at the federal level and puts elected leaders in the State of California on record as supporting the renewal. We strongly support this measure.
Click here to read the measure.
