Reality Check: Does Cincinnati need the Terrorism Risk Insurance - Cincinnati News, FOX19-WXIX TV

Reality Check: Does Cincinnati need the Terrorism Risk Insurance Act?

CINCINNATI, OH (FOX19) - The terrorist attacks on Sept. 11, 2001 hit insurance companies hard. So hard, in fact, that projects all over the country either stalled or where canceled all-together because companies wouldn't insure against terrorism and banks wouldn't loan businesses money that didn't have it. 

In 2002, in an effort to spur economic growth, Congress passed TRIA--The Terrorism Risk Insurance Act. A program credited for paving the way for major projects nationwide including New York's newly built Freedom Tower.

Here's how TRIA works: If an attack is certified as an act of terrorism, the government provides 85 percent of total coverage when losses exceed $100 million up to $100 billion. Some conservatives stand firmly against TRIA's renewal arguing it's a pre-paid bailout for insurance companies that puts taxpayers at risk for terror attacks that could potentially cost hundreds of millions of dollars. 

Ohio Senator Sherrod Brown is among the majority of democrats AND republicans who favor renewing TRIA. Brown tells FOX19 NOW that Ohio needs TRIA just as much as coastal states. 

"People in New York are concerned about how do you insure places in NY that might be vulnerable to a terrorist attack while people in San Francisco think that perhaps" said Brown. "Our state--we have a lot of great major events, particularly in the three C cities," says Brown.

Those three “C's"; Cleveland, home to the republican national convention in 2016. Columbus, potential home to the democratic national convention. And Cincinnati, home to this summer's All-Star game. Major League Baseball joined the NFL along with Professional Hockey and Basketball in urging Congress to renew TRIA. Wednesday's house bill passed through the House Wednesday by a vote of 416-5 but it still has to go through the Senate. 

Meanwhile, the Congressional Budget Office estimates that renewing TRIA would cost taxpayers $1.7 billion between now and 2019 and $3.5 billion between now and 2024. However, if TRIA isn't renewed, taxpayers could pay an even steeper price: after the attacks of Sept. 11, Congress allocated $18 billion to individuals, businesses, and local governments in New York alone.

Copyright 2015 WXIX. All right reserved.

Powered by Frankly