Left on the Senate floor was a House-passed bill that would havedoled out to the insurance industry $100 billion interrorism-coverage loans. Jeff DeBoer, president of the Washington,DC-based Real Estate Roundtable, states that the Senate was close"to final negotiations" when the clock ran out.

"Right now, insurance companies are regulated by the states, andthe states tell them what kind of coverage to write if they want todo business there," explains DeBoer. "The states are granting thoseexclusions. That's going to increase the risk premiums for debt andequity participants."

DeBoer, whose group is part of an industry coalition that islobbying for the reform, is confident that the debate will be takenup again when Congress opens again for business, but by then, thedeadline will be gone for policy renewals. "The game will startagain," he states. "Assuming there is some evidence of marketdisruption, the issue will be at the forefront." Unfortunately, hesays, there is bound to be market disruption since "70% of propertyor casualty insurance policies come due on Jan. 1."