Yesterday, two top legislative priorities of the Big "I"—an extension of the Terrorism Risk Insurance Act (TRIA) program and the National Association of Registered Agents and Brokers (NARAB II) legislation—moved a big step closer to the finish line.

The U.S. House of Representatives passed an amendment in the nature of a substitute to S. 2244, the Terrorism Risk Insurance Program Reauthorization Act of 2014, in an overwhelming 417–7 vote. S. 2244 would extend the TRIA program for six years and includes the NARAB II legislation that would establish a permanent NARAB.

Before passage of the legislation, the Big “I” joined forces with five other insurance trade associations in sending a joint letter to the House leadership that strongly urged the House to pass the TRIA package including NARAB II. The Big “I” organized the letter, which was also signed by the American Association of Managing General Agents, the Council of Insurance Agents & Brokers, the Insured Retirement Institute, the National Association of Insurance & Financial Advisors and the National Association of Professional Surplus Lines Offices.

In addition to reauthorizing the TRIA program for six years, the bill would also raise the necessary trigger amount in total losses from the current $100 million to $200 million, over five years beginning in calendar year 2016. Over the same time period, the mandatory recoupment would also rise from $27.5 billion to $37.5 billion, increasing by $2 billion each year. For all events, the bill would raise the private industry recoupment total from the current 133% of covered losses to 140% of covered losses.

The legislation also includes NARAB II, which would achieve much-needed reciprocity in producer licensing and help policyholders by permitting greater competition among agents and brokers. This legislation would build upon regulatory experience at the state level, promote greater consistency in agent and agency licensing and ease the burden many agents face in doing business across state lines by creating a voluntary mechanism for nonresident agent and agency licensing.

Now that the House has passed this TRIA/NARAB II legislation, the attention turns to the Senate to act on the bill before it adjourns for the year. The Big “I” is pushing hard for the Senate to take up the bill so this important legislation can head to the President’s desk to be signed into law before the end of the year when the TRIA program expires. 

Wyatt Stewart is Big “I” director of federal government affairs.