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)

Contact ALTA at 202-296-3671 or

North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents. SoftPro is the nation's leading provider of real estate closing and title insurance software. With more than 14,000 customer sites and over 60,000 users nationwide, this award-winning software offers a suite of products designed to increase your volume and revenue by reducing the time it takes to do closings. SoftPro has been recognized by the American Business Awards every year since 2007 - winning awards for Superior Customer Service, Support and Product Development.