Senate Panel OKs A TRIA Bill

The fact that there are significant differences between the two bills and that the Bush administration, through the Treasury Department, is voicing considerable concerns about the House bill means that there will likely be protracted negotiations while Congress is out of town and when it gets back, lobbyists and congressional staffers said last night.

In a statement, Mr. Winston said that, "NAMIC supports S. 467, the "Terrorism Risk Insurance Extension Act of 2005″ as reported by the Senate Banking Committee this morning and urges its swift passage on the Senate floor."

He added that "NAMIC is grateful to Chairman Richard Shelby, R-Ala., Ranking Democrat Paul Sarbanes, D-Md., and Sens. Richard Dodd, D-Conn., and Robert Bennett, R-Utah, for their considerable efforts to move this critically important legislation in a meaningful way prior to the expiration of the Act at the end of this year."

In a statement Tuesday night, the Treasury Department implied support for the Senate bill, to which it provided input.

Brookly McLaughlin, a Treasury spokesperson, said, "Our understanding of the Senate framework is that it would meet many of the principles the Secretary put forth in June and would allow more room for private sector participation and reduce the risks to taxpayers."

Earlier, Ms. McLaughlin said the Treasury Department was "concerned" with some provisions of the House version, noting that parts of the legislation would expand the program and increase taxpayers' risk.

"As introduced, the bill increases lines of coverage, increases complexity and puts taxpayers at risk in certain cases sooner than under the current version," Ms. McLaughlin said. "We've been very clear that any extension must result in private market participants taking on a larger role in providing terrorism coverage and the risk to taxpayers being decreased."

In a statement last night, Sen. Shelby said the Senate bill represented a collaboration involving himself and Sens. Dodd, Bennett and Sarbanes.

Sen. Shelby said the bill "strikes the appropriate balance between the needs of the industry and efforts to foster greater private market solutions. Further, I believe that this compromise is consistent with recommendations offered by the Treasury Department and shared by consumer groups and other taxpayer interests."

Sen. Dodd said the bill was a "common-sense proposal, adding that, the bill "provides a vital financial backstop that can help inoculate our economy from any potential future terrorist threat and protect jobs and our economy. We only can hope that it is never needed."

The Independent Insurance Agents and Brokers of America was cautious about the Senate proposal, saying, "It is certainly a promising sign that the Senate Banking Committee has reached an agreement."

Charles E. Symington Jr., senior vice president for government affairs and federal relations for the IBAA, added, "We definitely need a federal terrorism backstop in place when TRIA expires at the end of the year, so Chairman Shelby, Sen. Dodd, Sen. Bennett and Sen. Sarbanes deserve credit and appreciation for their hard work. We are hopeful that Congress will be able to agree on a unified bill before TRIA expires."