Just a few months ago, the Terrorism Risk Insurance Act (TRIA),an Act that limits the amount of losses insurers would beresponsible for in the event of a terrorist attack, seemed like asure bet to be extended for a third time. Though both the House andthe Senate had significant disagreements, for the most part, bothbelieved that the program should be extended further into thefuture than it had been in the past, when it was given just atwo-year re-up. But with the Dec. 31, 07 expiration date loomingand new promises of a presidential veto, the fate of TRIA issuddenly looking grim.

There are several important differences between the House andthe Senate bills. While the House asks for a 15-year extension ofTRIA, the Senate requests just seven. Furthermore, the House billmandates that coverage be made available by insurers to covernuclear, biological, chemical, or radiological attacks, a point theSenate has yet to adopt in its version. Both bills, however,propose eliminating the domestic terrorism exclusion, therebyclassifying all attacks -- domestic or international -- under theterrorism banner.

A similar pattern occurred in Dec. 2005, the last time TRIA wasextended. A year-long debate ended with last-minute negotiating,and the resulting stripped-down bill was given approval for anothertwo years shortly before the Dec. 31, 2005 deadline.

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