House Republican committee votes to extend 9/11 property insurance against terrorism

A House Republican committee voted to extend the Terrorism Risk Insurance Act, but Democrats say the measure is flawed. Rep. Carolyn Maloney says Democrats hope opposition gives them leverage to change the measure before it receives a vote on the House floor.

Alex Rud for New York Daily News
Rep. Carolyn Maloney said Democrats hope opposition gives them leverage to change the measure before it receives a vote on the House floor.

BY Dan Friedman

A House Republican committee voted to extend a post 9/11 program that helps property owners in New York insure against terrorism — but Democrats say the measure is flawed and will raise insurance costs.

Democrats on the House Financial Services all voted against the measure that would extend the Terrorism Risk Insurance Act.

"The goal is to get the strongest bill possible," said Rep. Carolyn Maloney (D-Manhattan).

Maloney said Democrats hope opposition gives them leverage to force changes to the measure before it receives a vote on the House floor.

The program provides a guaranteed federal backstop to companies that sell insurance against the prospect of a devastating terror attack. It was created in response to the near impossibility of buying terror insurance in downtown Manhattan after the September 11 attack.

"The financial district was attacked in the hopes of crippling the economy of the United States of America," Maloney said, so federal support for terror insurance is one way the country can "fight back."

Maloney and other Democrats said they were encouraged that the House Republican bill extended the program for five years.

But they said other provisions imposed by House Financial Services Chairman Jeb Hensarling (R-Texas) make the bill unacceptable.

They faulted in particular an increase in the threshold that would trigger government support for insurers from $100 million to $500 million.

Sen. Chuck Schumer said Friday that he "House's backwards approach" would slow real estate development around the country.

Schumer is pushing his own compromise extension, which makes less significant changes to program.

If the chambers cannot agree, the program will expire at year’s end.

dfriedman@nydailynews.com




Source New york Daily News