Financial Industry leaders are pushing for an immediate House-Senate conference agreement on legislation that would extend the 2002 Terrorism Risk Insurance Act (TRIA), while other groups expressed concern about extending it.

House and Senate aides have begun negotiations behind the scenes after the December 7 passage of the House version of the TRIA extension bill, according to one aide familiar with conference plans. Lawmakers have a little more than a week to reach middle ground on the legislation before the Dec. 31 expiration of the act, which provides a federal backstop for private insurance coverage in the event of a terrorist attack.

The conferees must resolve differences over the number of years to extend TRIA and whether to expand coverage. A spokesman for Senate Banking Chairman Shelby said the chairman "is hopeful to be able to pass a targeted, temporary TRIA bill this year."

The American Council of Life Insurers issued a statement Wednesday saying its support of a final bill hinges on a conference agreement without a House provision that would restrict life insurers' ability to underwrite coverage on the basis of future travel to foreign countries. "The life insurance industry is prepared to support the TRIA reauthorization bill if it does not include this attack on fundamental concepts of risk assessment," said the group, arguing that the provision would jeopardize the industry's ability to classify risk "in a financially prudent manner." ACLI said it was hopeful House Financial Services Chairman Michael Oxley would keep his word during Wednesday's debate to revise the language in conference.

Opposition to the TRIA extension came from the Consumer Federation of America, which said Wednesday that a TRIA extension would "expand the already sizable federal subsidies granted to the insurance and real estate industries under the Terrorism Risk Insurance Act" and would cost taxpayers $3.3 billion. House Financial Services Capital Markets Subcommittee Chairman Richard Baker (R-LA) refuted that argument during floor debate, saying the legislation would not cost the government money "until and unless there is a terrorist attack." But, he said, it then would require the private sector to repay the loans after the crisis.

The American Insurance Association called the program "vital" and said the country's economic security depends on a House-Senate conference agreement to extend the program. "Time is short, but we are encouraged that the legislative process can be concluded successfully," said Leigh Ann Pusey, AIA senior vice president for government affairs.

The U.S. Chamber of Commerce and the Independent Insurance Agents and Brokers of America echoed the sentiment. "This legislation is crucial for the business customers of independent agents and brokers, for continued economic growth in America, and for our nation's economic security," said Robert Rusbuldt, IIABA chief executive officer. – Greta Wodele, National Journal