The vote, which was 49-20, was endorsed by the panel’s chairman Rep. Barney Frank of Massachusettes. However, ranking committee member, Rep. Spencer Bachus of Alabama, read a July 25 letter from Treasury Secretary Henry Paulson stating the administration’s opposition to even a 10-year extension.
What’s more, Rep. Richard Baker of Louisiana warned that a 15-year extension could draw a presidential veto.
Other changes the committee approved included amendments that would exempt carriers with annual direct premiums of less than $50 million from having to offer coverage for nuclear, chemical, biological and radiological attacks, as well as an amendment that would tie the size of insured losses required to trigger the backstop to a measure of inflation, the details of which will be worked out before the bill reaches the House floor.
The full House is expected to take up the measure after it returns from its August recess next month.