Rep. Carolyn Maloney (D-N.Y.) and 20 other Democratic members of congress recently introduced H.R. 7011, the Pandemic Risk Insurance Act of 2020 (PRIA). This bill is modeled on similar legislation passed after the 9/11 terror attacks, the Terrorism Risk Insurance Act also known as TRIA, which was originally introduced to boost the travel, retail, and entertainment areas of the real estate industry that could not get insurance coverage for investments and projects, during the aftermath of the post 9/11 economic downturn.
The aim of H.R. 7011 is to create the Pandemic Risk Reinsurance Program, a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies. Like TRIA, the federal government would serve as a backstop to maintain marketplace stability and to share the burden alongside private industry. A section-by-section summary of the legislation can be found here.
(Contact: John Jones at jjones@nareit.com)