Terrorism Insurance Implementation (C) Working Group
December 4, 2007

The Terrorism Insurance Implementation Working Group met jointly with the Government Relations Leadership Council. During the meeting the Working Group:

• Heard a report from NAIC staff on the status of bills to expend the Terrorism Risk Insurance Act.

• Learned that On Sept. 19, 2007 H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act of 2007, passed the House by a vote of 312-11.

• Learned that on Oct. 16, 2007, the Senate Banking Committee passed a significantly narrower bill that would extend the program for seven years and add coverage for domestic acts of terrorism to the program.

• Discovered that the Bush Administration had issued a veto threat for H.R. 2761, but would reluctantly support the Senate bill.

• Heard from Howard Leiken (U.S. Department of Treasury—Terrorism Risk Insurance Program) on issues that insurance regulators and the Treasury face once a compromise bill is agreed upon. Mr. Leiken was hopeful that the Working Group would work closely with the Treasury as it had in the past to expedite the changes needed to disclosure forms and policy language. Mr. Leiken also advised that the Treasury would issue interim guidance on the disclosure forms, mandatory make-available provisions and the new required disclosures related to the $100 billion cap if those provisions appear in the final bill.

• Pledged to work closely with the Treasury to facilitate development of the necessary disclosure documents and expedited filing procedures.