Senate Fails to Reauthorize TRIA: MHBT Reaction

DALLAS, Dec. 22, 2014 /PRNewswire/ -- The Terrorism Risk Insurance Program Reauthorization Act, a federal terrorism insurance backstop that was initially enacted in 2002 and extended in 2005 and 2007 to protect the security of the national economy, failed to be reauthorized by the U.S. Senate on Tuesday, December 16^th, 2014.  As the shocking news spread the next day, many insurance industry professionals have issued responses to the Senate's lack of action.

Bill Henry, CEO of MHBT Inc. of Dallas, and one of a handful of industry leaders invited to testify in front of the United States Senate Committee on Banking, Housing, and Urban Affairs on behalf of the Council of Insurance Agents & Brokers and clients of MHBT Inc. in February, issued a response to news mirroring that of many industry leaders. "In what is perhaps the poorest lapse in leadership yet, the Senate failed to extend TRIA. The renewal of TRIA was overwhelmingly approved by the House last week (417 votes in favor) and the Senate had earlier approved a very similar bill with only 4 negative votes.  The main hang up was Senator Tom Coburn (R-Ok) who had an objection to an unrelated provision included in the bill." 

While Congress assures the insurance industry they will address the reauthorization of TRIA when they convene in January, it has left insurance professionals stunned and disappointed. With the expiration of TRIA approaching on December 31^st, 2014, industry professionals will spend the holidays sending out notices, revisiting policy language, and continuing to provide clients with insight on how this may influence their insurance programs.

As MHBT is actively working to understand the impact of client's insurance programs, Bill Henry issued this statement to clients: "As your broker, we will do everything we can to keep you informed and to afford you the coverage you need and deserve.  We are talking to all our insurance company partners today in order to see how they plan to proceed in light of this huge surprise and reversal in Washington!"

About MHBT

MHBT Inc. is based in Dallas with offices in Fort Worth, Austin, Midland and Lubbock, Texas. MHBT is ranked as one of the largest privately owned insurance brokers in the country and services a global, national and local client base.  MHBT is headquartered at 8144 Walnut Hill Lane, 16th Floor, Dallas, Texas 75231 (800) 443-0185. 

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Media contacts: Robert C. Smith, Chief Operating Officer [email protected] (972) 770-1624 Mike Harris, Chief Administrative Officer [email protected] (972) 770-7195

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SOURCE MHBT Inc.