(Bloomberg) — House leaders released a proposed six-yearextension of a federal program to insure property against the riskof terrorism, including a Republican proposal to revise a bankregulatory law.

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The measure will be brought to the the House floor today,according to a House Republican leadership aide, who soughtanonymity.

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The Senate hasn't accepted the House proposal. Majority LeaderHarry Reid, a Nevada Democrat, told reporters today he didn'texpect the insurance plan extension to be part of a must- passfederal spending measure being negotiated this week.

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House Financial Services Committee Chairman Jeb Hensarling andDemocratic Senator Charles Schumer of New York agreed to increase athreshold so government reimbursement wouldn't begin until aproperty owner's losses reach $200 million, up from $100 millionunder the current program. The Terrorism Risk Insurance Act is setto expire Dec. 31.

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Hensarling, a Texas Republican, added to the measure a provisionto change the 2010 Dodd-Frank financial-services law. It would freeagricultural and energy companies from having to post collateralfor swaps that are traded directly with banks and not guaranteed ata third-party clearinghouse.

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Banking regulators have moved this year to free so-calledend-users from the requirement.

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Terrorism Attacks

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TRIA was created by Congress in 2002 because insurers beganexcluding terrorist acts from policies after the previous year'sSept. 11 attacks, and prices for terrorism-only insurancesoared.

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Insurers including ACE Ltd. and the Hartford Financial ServicesGroup Inc. have called on lawmakers to extend the program, as haveuniversities, the National Football League and lobbying groups suchas the American Insurance Association.

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Hensarling had previously said he wanted to abolish theterrorism insurance program and replace it with private coverage.Later he agreed it should be extended in some form.

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He proposed limiting government reimbursement by raising thepayout threshold to $500 million for attacks waged withconventional weapons.

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–With assistance from James Rowley in Washington.

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