The House was nearing a vote at press time on a seven-year extension of the federal terrorism insurance program. The seven-year term is a big change from the 15-year extension the House approved in September. That measure drew a White House veto warning.
The five-year-old “backstop” program is set to expire Dec. 31. The new House bill’s seven-year term is the same as the one in the terrorism insurance bill the Senate passed on Nov. 16. The House’s new measure retains key parts of its earlier bill, such as adding group life to the insurance lines included in the federal program. It also keeps a September bill provision to reset an insurance company’s 20% deductible, initially to 5%, after the insurer sustains $1 billion in insured losses from a terrorist act.