In our continuing coverage of Congress’ rush to beat the December 31, 2007 expiration date of the 2002 Terrorist Risk Insurance Act, we note the House on Tuesday bowed to pressure from the Senate and the White House to pass a less ambitious extension of the Act than it had previously passed. Earlier House bills were for fifteen and seven years, and would have included group life insurance coverage and other new features. The bill that passed Tuesday by a vote of 360-53 would expand coverage to domestic as well as foreign terrorist attacks, but would make few other new changes.
Critics of the Act find it an unnecessary subsidy for insurance companies who can cover the risk of terrorism without government assistance. Although the White House threatened to veto the bills previously passed by the House, the Administration backed the Senate’s limited extension of the Act.
