The Senate has not yet acted on renewing TRIA and the clock is ticking. Originally passed as a stop-gap program in 2002, TRIA will expire on Dec. 31 unless it is extended by Congress.
The Terrorism Risk Insurance Revision and Extension Act—which passed by a vote of 312 to 110—would add group life insurance to it; broaden coverage to domestic terrorism, as well as foreign; and mandate nuclear, biological, chemical and radiological attack coverage under certain conditions. Additionally, it would also change the damage levels triggering TRIA, which both backers and opponents agreed has helped stabilize property insurance markets that were hammered by the Sept. 11, 2001 attacks on the United States.
Senior Bush administration officials would likely recommend that the president veto the bill in its current form. The administration believes that the backstop should be steadily scaled back and that the private insurance market should handle terrorism risk.
Insurers and business interests have been monitoring congressional action closely and pushing hard for renewal.