Senate Banking Committee Reports Flood and Terrorism Insurance Legislation

October 18, 2007

On October 17,the Senate Banking Committee marked up and reported draft legislation to reauthorize the federal flood insurance and terrorism insurance programs. Both bills differ from House passed legislation and it is expected that those differences can be worked out after full Senate consideration.

The National Flood Insurance Reauthorization bill was reported by a 21-0 vote of the Committee. It would reauthorize the program through 2013. The Senate failed to include optional wind-damage protection in its bill, as the House did. The current program is set to expire at the end of fiscal 2008. To read the House passed bill. (H.R. 3121)

The Committee approved the Terrorism Risk Insurance Act (TRIA) by a vote of 20-1. It would extend the program for seven years. Under TRIA, the government is obligated to help pay for losses from terrorism once costs for insurers reach a certain threshold. The Senate bill keeps the current $100 million threshold while the House passed bill would reduce it to $50 million. There are several other differences in the two bills. The White House has offered cautious support for the Senate version. To read the House version: (H.R. 2761)

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