AIA President Praises House Financial Services Committee for Action on Terrorism Insurance Legislation

On Thursday, Governor Marc Racicot, president of the American Insurance Association (AIA sent a letter to Massachusetts Rep. Barney Frank and Alababama Rep. Spencer Bachus expressing his appreciation for the Committee’s efforts in moving forward to mark-up the Terrorism Risk Insurance Revision and Extension Act of 2007 next week following a sobering National Intelligence Estimate that concluded Al Qaeda and radical Islamist terrorist organizations continue to pose an urgent threat to our security. 
 
Following is the letter, as reproduced from the AIA’s website: 
 
“Dear Chairman Frank and Ranking Member Bachus: 
 
“As the Committee moves forward to mark-up the Terrorism Risk Insurance Revision and Extension Act of 2007 (HR 2761) next week, I would like to express AIA’s appreciation for your steadfast leadership and recognition of the continuing role that the Terrorism Risk Insurance Act (TRIA) plays in our Nation's economic security. 
 
“The insurance industry and the American public were again reminded this week that the terrorist threat in the U.S. remains very serious. As you know, the Director of National Intelligence presented a National Intelligence Estimate (NIE) to Congress and the President. The NIE concluded Islamic terrorist organizations, including al-Qaeda, are intent on mounting an attack on U.S. soil.  
 
“The sobering reality, as summarized by the President’s Homeland Security Advisor Fran Townsend is: 'We are facing a persistent terrorist enemy led by al Qaeda that remains driven and intent on attacking the homeland, and that continues to adapt and improve its capabilities.' 
 
“We also learned this week that Congressional investigators with the Government Accountability Office (GAO) were able to receive a license to buy enough radioactive material to build a "dirty bomb" from the Nuclear Regulatory Commission. 
 
“These announcements follow in the wake of attempted terrorist attacks in London and Glasgow just last month. 
 
“The severity of the threat as stated in the NIE, the revelation that dirty bomb materials may be easy to obtain in the United States, and the recent attempted terrorist attack overseas all underscore the importance of a strong federal terrorism risk insurance program. TRIA must be extended as quickly as possible and must remain a vital component of our national security and economic well-being for the foreseeable future.  
 
“I think you would agree that this legislation has worked very well since its inception in achieving its public policy goal: to make terrorism insurance available in the private market to those who need it and cannot do business without it.  
 
“Again, AIA strongly supports the Committee's efforts, and we pledge to work with you, our colleagues in the insurance industry, and our policyholders to maintain and strengthen the valuable public-private partnership that TRIA has provided for the past 5 years.”