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BETHLEHEM (July 13) -
State Senator Lisa M. Boscola wants
to protect taxpayers and small
businesses from a $100-billion “gap”
in terrorism insurance that could
devastate Pennsylvania’s economy.
In 2002, Congress enacted the
Terrorism Risk Insurance Act (TRIA),
which guaranteed that the federal
government would pay about 90% of an
insurer's post-deductible losses,
capped at $100 billion a year.
TRIA will expire on December 31,
2005, but Boscola has introduced a
Senate Resolution calling on
Congress to extend the program.
“The September 11th
terrorist attacks changed the global
insurance market significantly,”
Boscola said.
“TRIA has effectively
worked to provide some measure of
insurance for American jobs and
American companies against the risk
of terrorism. Congress did the
right thing three years ago and they
need to do the right thing again.
This law needs to be extended.”
TRIA plays a critically important
role in our nation’s response to
terrorism and helped restore a
greater sense of economic security
and stability after the terrorist
attacks on 9/11, Boscola said.
Extending the Terrorism Risk
Insurance Act would ensure the
continued availability and
affordability of terrorism insurance
during the short-term. An extension
would also give Pennsylvania
businesses time to find comparable
coverage on the private market,
according to Boscola.
“Extending TRIA is important to
prevent drastic instability in the
insurance market and in
Pennsylvania’s economy,” Boscola
said.
In a letter to
Congressman Charles Dent and
Senators Arlen Specter and Rick
Santorum, Boscola notes that
since the Lehigh
Valley is the third largest
metropolitan area in Pennsylvania,
their support for an extension of
TRIA before the December 31, 2005
deadline is critically needed.
“Although TRIA is not set to expire
until December 31, 2005, it is
essential that Congress acts quickly
to extend this program,” Boscola
said. “Without government backing,
it will be much more difficult to
find affordable terrorism
insurance.”
If TRIA is not
extended soon, commercial consumers
may find it increasingly difficult
to obtain terrorism insurance, as
insurers would be forced to evaluate
each policy on the assumption that
TRIA’s backstop will cease for at
least a portion of the coverage
period. This could eventually shift
more risks of terrorism to taxpayers
and businesses, according to Boscola.
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To
obtain a copy of the letter sent to
Dent, Santorum and Specter, please
feel free to contact Senator
Boscola's office at (610) 868-8667.
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