House Democrats Under Pressure to Approve Senate Terror Bill

The additions to the Senate bill scheduled to be voted on include provisions contained in legislation passed by the House in late September but deleted in the Senate.

The Senate bill effectively extends the current legislation by 7 years and adds claims from acts of domestic terrorism to the program.

The House bill restores provisions from the House bill deleted from the Senate bill. These include language adding group life to the lines of insurance that currently have government support in the event of a catastrophic loss from a terror attack.

It also adds a provision aimed at reducing the cost of terrorism risk insurance for properties in urban areas most likely to be targeted by terrorists.

In addition, it would reduce the trigger from the current $100 million to $50 million. It was introduced by Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, with the support of Rep. Gary Ackerman, D-N.Y.

In a statement of administration policy issued this morning, the Office of Management and Budget said the administration "strongly opposes" any amendments to the Senate version of the bill and recommends a veto to the president if any changes were made.

It followed a letter sent to Republican members of the House Financial Services Committee late Monday by Rep. Spencer Bachus, R-Ala., ranking minority member of the committee.

Action on a terror backstop measure comes as Congress is struggling to manage an early adjournment in the face of a multitude of budget and other issues. The current version of the legislation, the Terrorism Risk Extension Act of 2005, sunsets Dec. 31.

In his letter, Rep. Bachus said he would oppose the additions to the bill proposed by House Democrats when the bill comes to the House floor.

He also said, "Based on the feedback we have received from [other Republican members of the House Financial Services Committee], a majority of Republicans will be voting against this bill."

Rep. Bachus said in his letter, obtained by National Underwriter, "While I encourage all members to vote their conscience, I will be voting against Chairman Frank's bill in order to avoid further delay in renewing the Terrorism Risk Insurance Act before the program expires Dec. 31.

"Consistent with our previous position, the Senate compromise is closer to the legislation we Republicans advocated in the House," Rep. Bachus added.

In a statement issued this morning, an official of the American Insurance Association said it is "critical that Congress act by the end of the year" to extend the program.

"Historically, this bill has enjoyed overwhelming bipartisan support in both the House and Senate," said AIA spokesman Dennis Kelly.

"A considerable amount of time and energy have gone into crafting legislation that balances the concerns of all stakeholders in both the House and the Senate," Mr. Kelly said. "We still have hope those bodies will work out their differences."