Washington–The House and Senate financial services committeesoverwhelmingly approved bills today that extend the Terrorism RiskInsurance Act.

Passage of the measures by both panels came despite statementsfrom U.S. Treasury officials that the White House has concernsabout increasing government insurance industry involvement. Thelegislation in the works would extend TRIA, the federal backstopfor terrorism insurance, beyond its current expiration date of Dec.31.

However, industry lobbyists said because the bills are markedlydifferent, it is likely that Congress will not send a bill toPresident Bush to sign before mid-December.

In a message to members late tonight obtained by The NationalUnderwriter, Ken Crerar, president of the Council of InsuranceAgents and Brokers, said: "Congress is expected to return after theThanksgiving holiday to complete action on a number of legislativeitems, and we believe that this issue is of significantly highprofile to create resolve among Senate and House leaders forresolution."

Industry lobbyists and congressional staff said the leadershipof the Senate Banking Committee was working to have the full Senatetake up the bill by tomorrow afternoon.

The House, with a fuller plate of must-do legislation to digestbefore it departs for a two-week Thanksgiving recess, is seen asunlikely to pass its version of the bill before Saturday.

Charles E. Symington Jr., senior vice president for governmentaffairs and federal relations at the Independent Insurance Agentsand Brokers of America, said because the bills are different,action on a consensus bill is likely to take place the week of Dec.5, when Congress returns from its recess.

It is clear that the White House will push for the Senateversion of the bill. In a statement after the Senate vote, TreasurySecretary John Snow said, "I'm pleased to see that actions today inthe Senate to extend the Terrorism Risk Insurance Act recognize thetemporary nature of the program and place terrorism insurance onthe right path to full private market participation."

He added that, "As Congress proceeds on legislation to extendTRIA, we will continue to work with both the House and Senate toensure the program entails greater participation of the privatemarket and less risk for taxpayers."

Late Tuesday, after the House bill introduced by Rep. RichardBaker, R-La., chairman of the Capital Markets Subcommittee of theFinancial Services panel, became public, Brookly McLaughlin, aTreasury spokesperson, voiced concerns about some provisions of theHouse version, noting that parts of the legislation would expandthe program and increase taxpayers' risk.

"As introduced, the bill increases lines of coverage, increasescomplexity and puts taxpayers at risk in certain cases sooner thanunder the current version," Ms. McLaughlin said. "We've been veryclear that any extension must result in private market participantstaking on a larger role in providing terrorism coverage and therisk to taxpayers being decreased."

In general, both bills call for a two-year extension of theprogram and raise the current $5 million insurer loss "trigger" forfederal payments to $50 million in the first year and $100 millionin the second year.

The Senate mandates that the program end after the two-yearextension; the House bill provides language for the bill tocontinue, albeit with higher threshold levels.

The House bill also adds group life insurance to the listedcoverages; the Senate bill, following the White House policy, doesnot.

The House bill provides different coverages for different linesof business based on the likelihood that insurers can persuadereinsurers in the private sector to accept some of the risk.

The House bill suggests creation of a tax-advantaged poolingmechanism to help reduce the risk smaller insurers have of beingwiped out by a single event. The pool concept has been advanced asa means of transitioning the program to the private market.

The Senate Banking Committee reported out a modest version ofthe current legislation by a unanimous voice this morning. TheHouse Financial Services Committee approved its more expansive andinnovative version of extension legislation later this afternoon bya vote of 64-3.