MONDAY, JANUARY 19, 2015
On January 7, 2015, President Obama signed into law one of the first pieces of legislation coming from the new Congress. The Bill, HR-26, passed the House by a vote of 416 to 5 and 93 to 4 in the Senate. The law creates an extension of the Terrorism Risk Insurance Act and helps to protect the nation's economy from major acts of terrorism. The new Act includes the following changes:
- The program's trigger incrementally increases from $100 million to $200 million by 2020
- The Federal share of losses decreases from 85% to 85% by 2020
- Increases the government's mandatory recoupment amount from $27.5 billion to $37.5 billion by 2020
- Increases the recoupment percentage from 133% to 145%
- Streamlines the certification process for an act of terror by removing the Secretary of State and Attorney General from the formal process
- Instructs the Secretary of Treasury to issue a certification timeline to Congress
All in all, the insurance industry has taken a sigh of relief knowing that this has been signed into law.
Source: The National Law Review
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