BUSINESS

House passes bill to renew terror insurance program by sweeping bipartisan vote

01/07/2015 03:23 EST | Updated 03/09/2015 05:59 EDT
WASHINGTON - The House has passed long-sought legislation to renew the federal program that props up the private market for insurance against terrorist attacks.

The 416-6 vote revives the government's terrorism risk insurance program. The program provides a backstop in which the government steps in to cover the bulk of losses in the event of a major terrorist attack.

The legislation passed the House last month after extensive delays but became snagged in the Senate in Congress' final days.

The legislation would decrease the government's exposure by gradually increasing the "trigger" at which the program starts to cover terrorist attacks to $200 million in losses, up from $100 million previously. The government's share of catastrophic losses would be gradually lowered from 85 per cent to 80 per cent.