GlobeSt.com UPDATE: Senate Passes TRIA Extension Bill

(To read more on the debt and equity markets, click here.)

WASHINGTON, DC-The likelihood of an extension of the Terrorism Risk Insurance Extension Act of 2005, scheduled to expire on December 31, has just increased with the US Senate’s passage of the Terrorism Risk Insurance Extension Act of 2005 this morning. The bill, S 467, calls for the extension of TRIA for two years beyond its expiration date at the end of the year, as well as changes to the original legislation. For previous coverage, click here.

The US Congress originally passed TRIA in response to the September 11, 2001 terrorist assault. The legislation instituted a federal backstop guaranteeing that the government would cover payouts exceeding $100 billion of insurers’ annual liability in the event of future terrorist. The legislation, which ensures the availability of terrorism insurance, is supposed to help protect the economy by allowing investors and developers to continue insured projects.