TRIA provides a federal financial backstop to the insurance industry for losses resulting from acts of terrorism. After one extension in 2005, the Act is set to expire on December 31, 2007 if no further action is taken.
On December 12, 2007, the U.S. House of Representatives passed a bill extending TRIA for an additional seven year period. The U.S. Senate passed a less generous bill last month in November 2007. The White House has threatened to veto any bill that expands the benefits beyond those provided in the original Act. While many commentators predict the eventual passage of a compromise bill, time is running out.