TRIA was initially allowed to ‘lapse’ at 12.00 midnight on 31 December 2014 after the US Senate failed to authorise the Bill in December prior to its holiday recess. The House of Representatives in the US approved a Bill on Wednesday (January, 7) that will extend TRIA for a further period of six years to expire on December 31, 2020. The Senate voted on and passed the Bill yesterday (January, 8) and now that it has passed both chambers it will be sent to the US President, who is expected to sign the legislation into law.
David Gittings, CEO of the LMA, said:
“The LMA has welcomed the news that the Senate has acted so quickly on TRIA in the New Year to put to an end a period of considerable uncertainty for the Lloyd’s Market whilst Congress was in recess. He said:
“While the LMA is pleased to see such a positive response from Lloyd’s standalone terrorism market to clients’ requests for cover during the period of confusion, the LMA has been in support of Lloyd’s and the industry’s lobbying position for the renewal of TRIA over the past 12–18 months and has been monitoring developments in Washington closely.
“Anticipating that the Bill will quickly be signed into law by the US President, it now enables us to focus on the immediate job in hand, which is to finalise our model (LMA) policy language, to ensure it is compliant with the requirements of the reauthorized TRIA program, and to produce practical guidance for our membership, working in close conjunction with Lloyd’s and their legal counsel.”
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