MBA's last action in the renewal endeavor came last week with the release of a survey detailing the pervasiveness of terrorism risk insurance and the negative impact the loss of the "make available" provision--which calls for insurance companies to make terrorism insurance available on the same terms as property and casualty insurance--will have on the real estate industry if not renewed. The survey concluded that without the extension, a mere 20% of the portfolios would have the insurance by 2005 or, there would be a decrease of $416 billion in the balance of loans that would be covered for losses.

Now the plan is to take the results of the survey straight to the Treasury, the secretary of which has the authority to extend the provision. MBA says the Treasury just does not have the data on the provisions effects. "We're in the process of setting up meetings with the Treasury Department to review survey findings so they understand why the commercial real estate industry is qualified to speak on this issue, and to review the findings because they are contrary to certain views," Cardwell says.

Among those views is the fact that the insurance affects more than just trophy properties. "We want them to understand the survey findings and the details behind them." Cardwell adds that MBA will strongly encourage the Treasury to extend the "make available" condition before September 1 because many policies are up for annual renewal on June 30, and the expected absence of the "make available" proviso could negatively impact these renewals. Cardwell adds that MBA is confident the Treasury will realize the importance of the extension and act accordingly once the two organizations sit down together to review the survey.