President Bush signs seven-year TRIA extension.

With five days to go before it was set to expire at the end of 2007, President George Bush signed into law legislation to reauthorize the federal terrorism-insurance backstop.

H.R. 2761, the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), again extends the original Terrorism Risk Insurance Act of 2002 (TRIA) by providing insurers with a federal backstop for damage done as a result of acts of foreign terrorism.

TRIPRA extends the current program for seven years, through the end of 2014.

Although the Senate and the House of Representatives had passed differing versions of TRIA renewal bills in November and October, respectively, lawmakers from both houses went down to the wire to seek a conference committee compromise in December.

Among the provisions of H.R. 2761, it eliminates the distinction between foreign and domestic terrorism, as well as provides coverage for nuclear, biological, chemical or radiological (NBCR) attacks.

The bill also requires the U.S. Government Accountability Office (GAO) to conduct a study to examine the issue of high-risk areas in the United States that are faced with unique insurance capacity constraints. The bill calls for the study to be completed by mid-2008.