Lloyd's Market Association Bulletin
LMA19-035-AC 22 November 2019
Interim Guidance on the potential 'expiry' of TRIA on 31 December 2020
The Terrorism Risk Insurance Program Reauthorization Act (TRIA), is scheduled to expire on 31 December 2020. Lloyd's America Inc. has been actively involved in discussions on the future of TRIA with lawmakers and other stakeholders, and the LMA has continued to work with Lloyd's in support of its lobbying efforts for the continuation of TRIA.
There has been a flurry of activity in Congress over the last two weeks with the introduction of reauthorization Bills in both the House of Representatives and the Senate. A TRIA reauthorization Bill has now passed the full House of Representatives and the Senate Banking Committee. All that remains is passage by the full Senate and the inevitable signature from the US President for this to become law. Unfortunately, the timetable for this remains unclear as the Senate currently has a very busy calendar.
Whist it is possible that TRIA could be reauthorized before year-end, or in Q1 2020, at the current time there is still uncertainty over the eventual form of the reauthorization Act.
We are aware that TRIA needs to be urgently addressed for policies renewing on/after 01 January 2020, which are currently being placed, and have therefore produced the attached Interim Guidance on wordings for contracts which provide cover beyond 31 December 2020.
Any queries on the above should be addressed to the LMA, to: Alison Colver or Linda Cook .
Head of Contract Wordings