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House of Representatives approves TRIA extension

The US House of Representatives has passed legislation to extend the federal terrorism insurance backstop for six years.

The Terrorism Risk Insurance Act (TRIA) was established following the September 11 2001 attacks, as terrorism cover became unavailable or very expensive.

It has been extended twice but is due to expire at the end of the year.

The insurance industry argues that without TRIA, terrorism cover will become less available and less affordable, adversely affecting the wider economy.

The House passed the Terrorism Risk Insurance Program Reauthorisation Act of 2014 by 417 votes to seven, and it now moves to the Senate.

The National Association of Professional Insurance Agents has welcomed the development and urged the Senate to act without delay.

“Insurance consumers, professional insurance agents, businesses across the country and our national security will all be strengthened and better protected by the renewal of our nation’s terrorism insurance program,” CEO Mike Becker said.

Under the reauthorisation Act, the trigger for the federal backstop would be incrementally raised from the current $US100 million ($120.34 million) to $US200 million by 2020.