TRIA Passes House

Following the Senate's lead, the House has passed a seven-year extension of the Terrorism Risk Insurance Act, which is due to expire on Jan. 1.The House originally passed a 15-year extension of the federal government's terrorism insurance program that would have expanded federal backing to cover insurance for nuclear, biological, chemical, and radiological acts of terrorism. The Senate went with a simple seven-year extension with the blessing of the Bush administration, which caused a lot of friction. But House members reluctantly agreed to a compromise that allows for terrorism insurance to cover domestic acts of terrorism for the first time. The final bill also includes a study on insurance for nuclear, biological, chemical, and radiological acts of terrorism. "I am disappointed that the final TRIA bill omitted key elements of our stronger House legislation, but this is a solid compromise measure that will stabilize the market and ensure the ongoing availability of affordable terrorism insurance," said Rep. Carolyn Maloney, D-N.Y. President Bush is expected to sign the bill.