Daily Real Estate News  |  October 18, 2007  |   Senate Panel OKs Extension of Terror Insurance Act
The U.S. Senate Banking Committee passed a seven-year extension of federal Terrorism Risk Insurance Act (TRIA) that has been supported by the insurance industry and the NATIONAL ASSOCIATION OF REALTORSŪ.

Last month, the House passed a 15-year extension of the program that would expand TRIA to cover life insurance and require insurers to offer coverage for nuclear, biological, radiological and chemical attacks, in addition to conventional terrorist attacks. The House-passed measure has a $50 million program trigger.

The legislation passed by the Senate panel is more restrained. It wouldn't require property and casualty insurers to cover unconventional attacks and it sets a $100 million program trigger after which the federal government would step in to help pay losses.

Senate lawmakers from both sides of the aisle praised the legislation.

"This seven-year extension approved by the committee today is a clear sign this is a vital program that is still needed," Sen. Bob Bennett, R-Utah, said in a statement.

Banking Committee Chairman Christopher J. Dodd (D-Conn.), declined to discuss how lawmakers plan to reconcile the significant differences between the House and Senate versions of the legislation. "One step at a time," Dodd said.

President Bush has threatened to veto the House-passed version of the legislation, but Treasury Secretary Paulson sent a letter to the Senate Banking Committee saying the administration wouldn’t oppose the Senate version.

Source: The Associated Press, Michael R. Crittenden (10/17/2007)