The New York state Senate has added its voice to the growing number nationally urging Congress to extend a federal terrorism insurance backstop, according to the American Insurance Association (AIA), which is applauding their action.
“The New York state Senate in its Resolution No. 2563 recognizes the critical importance to the economy of extending a federal terrorism backstop before the Terrorism Risk Insurance Act of 2002 sunsets on Dec. 31, 2005,” said Leigh Ann Pusey, AIA senior vice president, government affairs. “The New York Senate joins other elected officials such as the U.S. Conference of Mayors and private sector policyholders throughout the country in recognizing this urgent need.”
The resolution states, “Failure by Congress to extend TRIA would likely result in the inability of insurers to offer coverage for future catastrophes resulting from terrorism. Without a backstop, limited availability of insurance against terrorism, would have a severe adverse effect on our country’s economy as financiers would be reluctant to lend, businesses would be reluctant to invest, and consumers would be unable to afford insurance.”
“The resolution also recognizes the fact that future attacks could include the use of nuclear, biological, chemical or radiological weapons that could result in a catastrophe. Any future federal backstop must take this scenario into account. AIA has been stressing this concern as well,” added Pusey.
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