Legislation that would extend the federal insurance "backstop" for terrorism-related claims for 10 years is moving in the House. A Financial Services subcommittee on July 24 approved a 10-year extension of the program. The full Financial Services Committee will take it up during the week of July 30, says committee Chairman Barney Frank (D-Mass.).
The federal program was es-tablished in 2002 and renewed in 2005. It is scheduled to expire on Dec. 31 unless Congress acts to continue it.
House subcommittee Republicans offered amendments to make the extension shorter than 10 years. But Democrats, who claimed that a long-term extension was necessary for multiyear construction projects, defeated those proposals.
The bill that the subcommittee cleared also would add group life to the types of insurance in the federal backstop program. In addition, the measure would require insurers to offer coverage for claims resulting from terrorist attacks using nuclear, biological, chemical or radiological weapons.