In the News

Terrorism Insurance Law Extended

The Terrorism Risk Insurance Act (TRIA), which required insurers to make terrorism risk insurance available and was set to expire at the end of 2005, recently got a reprieve. On Dec. 22, 2005, President Bush signed into law the Terrorism Risk Insurance Extension Act of 2005, which extends the TRIA's expiration date from Dec. 31, 2005, to Dec. 31, 2007. Real estate organizations, including BOMA International, had campaigned aggressively for this extension. The new law requires insurers to continue to make terrorism risk insurance available at least until the end of 2007. Also, it promises insurers government support if total losses industry-wide from a terrorist act exceed $50 million in 2006 and $100 million in 2007. And it raises insurer deductibles for such losses to 17.5 percent for 2006 and 20 percent for 2007 (these deductibles had previously been 15 percent).