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WASHINGTON, DC-Congress has taken another step toward putting an extension of the Terrorism Risk Insurance Act of 2002 in place now that the US House of Representatives has passed HR 4314, calling for the delay of TRIA's impending Dec. 31 expiration date to Dec. 31, 2007. Yesterday afternoon's passage of the Terrorism Risk Insurance Revision Act of 2005, which also incorporates a handful of amendments to the original, came about three weeks after the US Senate passed its version of extension legislation, the Terrorism Risk Insurance Extension Act of 2005, or S 467. For previous coverage, click here.

Leaders from a wide range of industries--including real estate, mortgage banking and insurance--have long advocated an extension of TRIA. The program was put in place in response to the Sept. 11 terrorist attacks that led to a sudden absence in availability of terrorism coverage and a severe blow to the national economy, as development projects came to a halt and future construction endeavors were put on the back burner. TRIA established a federal backstop 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.

"We've long said that a continued federal role is key to assuring that terrorism insurance remains available to businesses that need the coverage," Claire Wilkinson, vice president for Global Issues at the Insurance Information Institute, tells GlobeSt.com. "The private insurance market is simply not in a position to take on sole responsibility for economic fallout of a future attack. Estimates suggest that insured loss from a future attack could result in hundreds of billions in losses."