Rep. Frank To Give N.Y. Voice On TRIA Extension

That may be difficult. After the Senate voted under expedited procedures, Sen. Jim DeMint, R-S.C., a fiscal hawk, said, "Hopefully, the House, if they want to get it done, will take what we do and pass it."

The existing federal law providing a federal backstop for insurers expires in 33 days.

Sen. DeMint had earlier held the bill for several days because of concerns, he said, that the measure could result in a costly taxpayer bailout if an attack occurred.

"The Senate version is fine," Sen. DeMint said. "I was trying to get some assurances of what we had over here. That seems to be the sentiment–no guarantees–but it needs to go forward."

In his first comments since the Senate passed its version of legislation extending the terrorism risk insurance backstop, Rep. Frank did not reiterate comments he made in October saying he would demand an extension of the current program until April 30 rather than accept the more modest Senate version of the bill.

"I am pleased the Senate passed TRIA," Rep. Frank said. "We have a month now; we will be back for a couple of weeks in December, and I think it is very important that we begin conversations about a compromise."

He added, "I look forward to a formal conference or otherwise with the Senate, and I will consult very closely with the New York members of our committee who will have a major role in this."

His comments came against the background of a statement Friday by Rep. Gary Ackerman, D-N.Y., a senior member of the House Financial Services Committee and principal author of several provisions of the House bill.

In his comments Rep. Ackerman said he applauded the Senate's action. But his statement "insisted" that a final bill "contain the more expansive provisions in the House-passed version."

Rep. Ackerman explained, "Passage of TRIA's [Terrorism Risk Insurance Act] extension by the Senate continues to keep the momentum swinging."

Hopefully, Ackerman added, "this vote will bring us closer to passing of a final bill that provides a 15-year extension [to 2022]; the critical reset mechanism; and vital group life, nuclear, biological, chemical and radiological coverage."

The bill passed by the Senate extends the program through 2014 but contains most of the provisions of the Terrorism Risk Extension Act of 2005 which expires Dec. 31.

The only substantive change between the Senate bill and the current program is that it extends the program to include domestic terrorism.

In comments after the vote, Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee, said he was "very confident" the House and Senate could reach a compromise before Congress adjourns at the end of the year.

Dennis Kelly, a spokesman for the American Insurance Association, said, "We remain hopeful the Senate and the House will reach an agreement. It's critical that Congress continue their work and reauthorize this program by year's end."

David A. Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI), said that, "Extending TRIA for a substantial period of time will help provide market certainty for insurance consumers and ensure that we, not the terrorists, will determine where and what to build."

Mr. Sampson added that, We now urge leaders on this issue in the House and Senate to move forward expeditiously to produce a unified bill that both houses of Congress can pass and that the President will sign into law before the program expires Dec. 31st."