Terrorism Insurance Act Set to Expire

Congress failed to extend a bipartisan bill that would provide terrorism risk insurance after the U.S. Senate was unable to reach a final vote Tuesday. Sen. Tom Coburn (R-OK) blocked the vote over provisions that would extend the measure for six years and create a licensing program that enabled insurance agents to sell across state lines. The Terrorism Insurance Act, which was created in the wake of the September 11, 2001 terrorist attacks, provides a government backstop to help insurers and their customers recover losses. The program has been essential to industries such as construction, major sports, and real estate, but the failure to reauthorize the measure means it will have to be reintroduced when the next Congress meets in January.