NU Online News Service, Oct. 5, 1:38 p.m.EDT

WASHINGTON–Congress quietly extended a terrorism riskinsurance program for the airline industry for another year lastThursday.

The one-year extension was included in a continuing resolutionaimed at funding the government until Dec. 3.

Authorization for the program would have expired Thursdaywithout the extension.

President Obama immediately issued a proclamation authorizingthe Department of Transportation to extend the program, whichprovides insurance or reinsurance to U.S. air carriers against lossor damage arising out of terrorism.

The extension runs until Sept. 30, 2011.

But the DOT secretary cannot authorize such insurance unless he"determines such insurance or reinsurance cannot be obtained onreasonable terms and conditions from any company authorized toconduct an insurance business in a state of the United States."

The program is the Federal Aviation Administration's War RiskInsurance Program. The program has been available to U.S. carriersflying into war zones since the 1950s, according to the Departmentof Transportation, which administers it, but has been extended todomestic carriers since January 2003.

Officials of various brokerages which sell the coverage declinedto comment on the program.

The Obama administration is looking into the possibility ofreducing its terrorism risk insurance coverage liability as abudget-saving measure.

The Treasury Department asked for comments on the issue in Julyand received 49 comment letters on it, predominately from insuranceindustry interests that insisted the current version of theTerrorism Risk Insurance Act is essential to maintaining affordableterrorism risk coverage, especially for commercial properties inhigh-risk areas.