Terrorism Insurance Update: January 2008 (TRIPRA)

With only five days left before the Terrorism Risk Insurance Act was set to expire on Dec. 31, 2007, President George W. Bush signed into law legislation that reauthorizes the federal backstop for seven years, with a new expiration of Dec. 31, 2014. The Terrorism Risk Insurance Program Reauthorization and Extension Act of 2007, or "TRIPRA", now replaces the old TRIA program. The revised government-sponsored terrorism program features a few changes. The original TRIA legislation, effective 11/26/02, contained a dollar schedule of government reimbursement to the insurance industry in the event of a certified act of Terrorism covered by the bill.