New York State lawmakers voted today to approve a resolutioncalling for Congress to extend the Terrorism Risk InsuranceAct.

The state Senate voted in favor of the measure, legislativeresolution 2563, which was introduced by Senate Insurance CommitteeChairman James Seward, a Republican representing several upstatecounties.

The resolution says that, "Failure by Congress to extend TRIAwould likely result in the inability of insurers to offer coveragefor future catastrophes resulting from terrorism.

"Without a backstop, limited availability of insurance againstterrorism would have a severe adverse effect on our country'seconomy as financiers would be reluctant to lend, businesses wouldbe reluctant to invest, and consumers would be unable to affordinsurance."

Insurance associations, which had sought introduction andpassage of the resolution, noted that the vote added New York Statelawmakers to the chorus of groups calling for a TRIA extension.

"The New York Senate joins other elected officials such as theU.S. Conference of Mayors and private sector policyholdersthroughout the country in recognizing this urgent need," said LeighAnn Pusey, senior vice president of government affairs for theAmerican Insurance Association.

Insurance companies and trade associations, among others, havenoted that TRIA has played an important role in stabilizing theeconomy by enabling companies to provide terrorism coverage atreasonable rates.

If TRIA is allowed to expire as scheduled at the end of theyear, many stakeholders have said the lack of availability forterrorism coverage could cause a slowdown in the markets asconstruction and other vulnerable projects are put on hold.

"We are pleased that New York legislators recognize theimportance of TRIA and are urging those on Capitol Hill to securean extension of the act," said Kristina Baldwin, regional managerand counsel for Property and Casualty Insurers Association ofAmerica (PCI). "Without a federal terrorism insurance backstop inplace, market disruption is a near certainty."