House Backs TRIA Extension, But Without Group Life

"While it is not a perfect bill, the Senate's TRIA extension is a reasonable, bipartisan compromise that will ensure the continued vitality of our commercial insurance markets operating under the threat of global terrorism," he said.

He called the 7-year extension "fiscally responsible" and said he supported it because it "otherwise limits and improves taxpayer protections and prevents further intrusion by the government into this market-based program."

As passed by the House, H.R. 2761 – The Terrorism Risk Insurance Program Reauthorization Act of 2007–effectively extends the current program through 2014 and adds coverage of domestic terrorist events to the program.

It was passed under expedited rules requiring support by two-thirds of House members voting.

The next step is the likely signing of the bill by President Bush.

Bowing to the inevitable, a staff official of the American Council of Life Insurers, which had led the battle on behalf of life insurers to have group life included in the program, conceded defeat.

"Even though the public policy arguments for including group life in TRIA are compelling, we understood that this would be an uphill battle in the face of the veto threat from the administration," said ACLI official Steve Brostoff.

The bill as passed by the House also leaves out two other provisions sought by the House. One would have cut the current trigger for federal involvement in paying claims from a terrorist attack from $100 million to $50 million.

Another House priority left out of the final bill would have increased terrorism risk insurance capacity for properties in urban areas seen as prime terrorism targets where there is currently a shortage of such capacity available, even with the current TRIA program in place.

The program is set to expire by Dec. 31, and Congress is working to finish action on must-do legislation and leave town as soon as possible this week.