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WASHINGTON, DC-Congress has taken another step toward putting anextension of the Terrorism Risk Insurance Act of 2002 in place nowthat the US House of Representatives has passed HR 4314, callingfor the delay of TRIA's impending December 31, 2005 expiration dateto December 31, 2007. Yesterday afternoon's passage of theTerrorism Risk Insurance Revision Act of 2005, which alsoincorporates a handful of amendments to the original, came aboutthree weeks after the US Senate passed its version of extensionlegislation, the Terrorism Risk Insurance Extension Act of 2005, orS 467. For previous coverage, clickhere.

Leaders from a wide range of industries--including real estate,mortgage banking, and insurance--have long advocated an extensionof TRIA. The program was put in place in response to the September11 terrorist attacks that led to a sudden absence in availabilityof terrorism coverage and a severe blow to the national economy, asdevelopment projects came to a halt and future constructionendeavors were put on the back burner. TRIA established a federalbackstop guaranteeing that the government would cover payouts,beyond the initial deductible, up to $100 billion of insurers'liability in the event of future devastating terrorist attacks.