The White House has threatened a veto over a bill heading to the House floor that would extend for 15 years the federal “backstop” coverage for terrorism-related insurance claims. The Office of Management and Budget said Sept. 17 that an extension of the federal terrorism insurance program should be “temporary and short-term,” and contended the 15-year House bill “effectively makes [the program] permanent....”
OMB also objected to the House bill for adding group life to the insurance lines eligible for the federal program and adding coverage for acts of domestic terrorism. The program, established by the 2002Terrorism Risk Insurance Act, was extended in 2005 and is due to expire Dec. 31. There has been no Senate action yet.