In addition, the Act also permits the backstop to respond to acts of domestic as well as foreign terrorism; requires carriers to offer coverage for nuclear, chemical, biological and radiological attacks; and adds group life insurance to the program’s coverages.
The subcommittee’s chairman, Congressman Paul Kanjorski, offered an amended version of the bill that modified insurers’ NCBR exposure. Insurance companies would not be required to offer NCBR coverage until 2009. The deductibles charge under the program for NCBR coverage would decrease to 3.5% and increase by 0.5% per year until reaching 7.5% in year 10 of the program.
The amended version of the bill also includes adding a representative of the workers compensation insurance industry and a commercial real estate representative to a 21-member commission on terrorism risk insurance that would make recommendations concerning the marketplace within five years of TRIREA’s enactment. The commission also would issue a report eight years after the bill became law.
The 10-year extension is supported by the AIA, The Council of Insurance Agents & Brokers, and RIMS (Risk & Insurance Management Society), although portions of the original bill extension has the insurance industry concerned, such as the requirement of insurers to provide coverage for nuclear, chemical, biological and radiological attacks. Kanjorski’s amendment doesn’t implement this requirement until 2009.