respective bills

The legislation on which the House and Senate settled more closely resembles the Senate's version of the bill, which the White House strongly supports, but encompasses significant aspects of both bills. As per the agreement, the level at which TRIA becomes activated will go up from $5 million to $50 million in 2006 and up to $100 million in 2007. Deductibles and co-payments will increase and there will be an increase in the responsibilities of the insurance industry.

One major aspect, however, in which the House and the Senate bills differ, is the issue of repayment of federal aid. The compromise bill calls for 25% repayment in 2006 and 27.5% in 2006, which is a far cry from the House's call for 100% repayment.

"The Senate and the administration were completely unwilling to include real taxpayer payback," House Committee on Financial Services chairman Michael G. Oxley says. "I was successful in negotiating a modest increase in the industry's retention. However, this is not actual taxpayer payback, but in essence an industry-wide deductible." He says this "ensures that taxpayers will never be fully reimbursed for any corporate subsidies provided in the wake of a large-scale attack. This leaves taxpayers unnecessarily exposed to the potential cost of terrorism. As it is constructed now, this program could result in nothing more than a corporate handout from taxpayers."