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In November 2002, the federal government enacted the Terrorism Risk Insurance Act creating a temporary federal reinsurance program to limit insurance companies’ risks of financial loss from terrorist attacks and to increase the availability of terrorism coverage for property owners. TRIA is scheduled to expire on Dec. 30, 2005, and Congress has been considering proposals to extend the program. To that end, the Congressional Budget Office has prepared a paper analyzing TRIA and assessing changes in insurance markets since the law’s enactment.

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