[Congressional Record (Bound Edition), Volume 153 (2007), Part 23]
[Senate]
[Pages 31857-31860]
[From the U.S. Government Publishing Office, www.gpo.gov]




      TERRORISM RISK INSURANCE PROGRAM REAUTHORIZATION ACT OF 2007

  Mr. REID. Mr. President, I ask unanimous consent that the Banking 
Committee be discharged from further consideration of H.R. 2761, and 
the Senate proceed to its immediate consideration.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (H.R. 2761) to extend the Terrorism Insurance 
     Program of the Department of the Treasury, and for other 
     purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. REID. Mr. President, I ask unanimous consent that a Dodd 
substitute amendment at the desk be agreed to; the bill, as amended, be 
read a third time and passed; the motions to reconsider be laid upon 
the table with no intervening action or debate; and any statements 
relating to the bill be printed in the Record.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The amendment (No. 3800) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The amendment was ordered to be engrossed, and the bill to be read a 
third time.
  The bill (H.R. 2761), as amended, was read the third time and passed.
  Mr. REID. Mr. President, with all the ``he said, she said'' that has 
been going on in this body this week, everyone should all agree with 
one voice we passed extremely important legislation, terrorism 
insurance, which gives breathing room to the American free enterprise 
system, which allows various companies to go forward with what needs to 
be done, dealing with making sure that when they have a building they 
are going to construct, that there is some ability for the purchase of 
insurance, so if something untoward comes from these evil people around 
the world, they are covered.
  This is good legislation. I appreciate the cooperation of the 
Republicans.
  Mr. DODD. Mr. President, I am extremely pleased that the Senate has 
unanimously passed the Terrorism Risk Insurance Program Reauthorization 
Act of 2007. It is critically important for our Nation's workers and 
businesses that we enact this backstop legislation. The legislation 
passed today provides for an extension of the Terrorism Risk Insurance 
Act, known as ``TRIA,'' which expires on December 31 of this year. TRIA 
was originally passed in the aftermath of the 9/11 attacks, and was 
extended for 2 years in 2005. The bill passed by the Senate today 
extends TRIA for an additional 7 years.
  In anticipation of TRIA's expiration, the Banking Committee held a 
hearing earlier this year in which the committee heard from a variety 
of experts about the critical need to extend this program, which is 
vital to the economic security and prosperity of our Nation. As my 
colleagues will recall, after the attacks of September 11, 2001, the 
market for terrorism insurance in this country virtually disappeared. 
Businesses could not obtain credit, borrowers could not obtain loans, 
jobs were at risk, and the economy faced serious instability and 
dislocation. We repeatedly heard from businesses, both large and small, 
from labor unions, from universities and hospitals, from manufacturers, 
builders, and lenders, and from insurers about the need for the Federal 
Government to help stabilize the market and ensure the availability of 
affordable insurance against the risk of future terrorist attacks. 
Congress responded by creating TRIA, a public-private partnership in 
which the Federal Government would share the risk of future terrorist 
attacks with insurers by becoming the backstop against truly 
catastrophic losses.
  And the overwhelming evidence shows that TRIA has worked, very very 
well. According to several recent studies, terrorism insurance is more 
widely available and more affordable today than in the aftermath of 9/
11, providing certainty and stability to the sectors of our economy 
that we depend on for our national well-being. And it is important to 
note, TRIA has cost taxpayers virtually nothing. When terrorism 
insurance is available at reasonable rates, and when business owners 
and property owners can insure themselves against terrorism, there is a 
private-sector mechanism in place to cover a significant amount of the 
losses stemming from any future terrorist attack. In fact, a recent 
study by the RAND Corporation found that in the case of a terrorist 
attack, TRIA would actually save taxpayers money, as property owners 
could rebuild using the payments from their insurance policies instead 
of federal disaster assistance. Let me quote from RAND's findings: 
``Taxpayer cost is lower with TRIA than without TRIA across a broad 
range of scenarios when post-attack assistance is factored in as 
well.''
  The need to extend this program is clear. The private insurance 
industry has not reemerged with respect to the provision of terrorism 
insurance. Nearly all of the data and the experts say that there is no 
reason to think that the private insurance industry alone can insure 
against this unique risk. As long as the threat of terrorism remains, 
we must act to ensure that terrorism insurance remains available and 
affordable.
  I want to note that this bill contains two important studies to 
address serious issues that were raised in the context of the TRIA 
extension debate. First, there is a mandate for the GAO to study the 
question of insurance for nuclear, biological, chemical, and 
radiological terrorist events. Insurance coverage in this area is very 
limited and in this legislation we require the GAO to make 
recommendations for expanding such coverage. Second, the GAO is 
required to study and to report back to the committee within 6 months 
on whether there are areas of this country, such as Lower Manhattan, 
that may have unique capacity constraints when it comes to terrorism 
insurance, and to make recommendations for addressing those capacity 
constraints.
  This legislation is supported by the insurance industry and 
policyholders, and I ask unanimous consent to have printed in the 
Record letters of support for the legislation. I also want to 
particularly thank Senator Shelby for his work on this program, as well 
as Majority Leader Reid, Minority Leader McConnell, and Senators Reed, 
Bennett, and Schumer, for their work both on this bill and on the 
original TRIA bill and its extension in 2005. By extending the TRIA 
program for an additional 7 years, this bill will address the long-term 
security needs of our people and our economy, and I thank all the 
Members of the Senate for their unanimous support for this legislation.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                      International Brotherhood of


                                                    Teamsters,

                                 Washington, DC, October 16, 2007.
     Hon. Christopher Dodd,
     Chairman, Committee on Banking, Housing and Urban Affairs, 
         Dirksen Senate Office Building, Washington, DC.
       Dear Mr. Chairman: I am writing to encourage prompt action 
     on the matter of terrorism risk insurance. For us and our 
     families, it is an issue of jobs and our national economic 
     security, as well as one of protecting the investments of 
     pensioners to shareholders to individuals.
       With the devastation of the September 11th attacks, and the 
     recognition that terrorism risk will be with us for the 
     foreseeable future, insurers have excluded this risk from 
     coverage, and reinsurance remains largely unavailable, 
     exposing our economic security to serious peril.
       The essential facts that led Congress to enact the 
     Terrorism Risk Insurance Act of 2002 have not changed. We 
     continue to face an unpredictable threat with the potential 
     of mammoth losses to our economy. We continue to need 
     terrorism insurance for our

[[Page 31858]]

     economy to function in the face of the terrorist threat. We 
     continue to need the framework the program provides to enable 
     the United States to recover quickly and efficiently should 
     there be some future terrorist attack.
       As Chairman of the Senate Banking Committee, I encourage 
     you to act on an effective long-term federal program as soon 
     as possible.
       Thank you for your consideration of these views.
           Sincerely.

                                        Frederick P. McLuckie,

                                             Legislative Director,
     Government Affairs Department.
                                  ____

                                               Coalition to Insure


                                            Against Terrorism,

                                 Washington, DC, October 16, 2007.
     Hon. Christopher J. Dodd, Chairman,
     Hon. Richard C. Shelby, Ranking Member,
     Senate Committee on Banking, Housing and Urban Affairs, 
         Dirksen Senate Office Building, Washington, DC.
       Dear Chairman Dodd and Ranking Member Shelby: The Coalition 
     to Insure Against Terrorism (CIAT), a broad-based coalition 
     of business insurance policyholders, representing a 
     significant segment of the nation's GDP, strongly endorses 
     your efforts to extend and improve the Terrorism Risk 
     insurance Act (TRIA) with the introduction of the Terrorism 
     Risk Insurance Program Reauthorization Act of 2007 (TRIPRA).
       CIAT is very pleased that the Senate Committee on Banking, 
     Housing and Urban Affairs is proposing bi-partisan 
     legislation to extend TRIA. As the principal consumers of 
     this vital insurance coverage, CIAT thanks you for your long-
     standing support and leadership on the issue of terrorism 
     risk insurance.
       The current federal terrorism risk insurance program has 
     been a tremendous success. TRIA has helped keep the economy 
     going in the face of continued terrorist threats by allowing 
     businesses across America to secure this commercially 
     necessary product, saving countless jobs in the process. 
     Moreover, it serves as an important tool to minimize the 
     severe economic disruption that almost certainly will occur 
     from a future terrorist attack.
       With TRIEA's expiration looming at the end of 2007, CIAT is 
     extremely pleased that the extension enjoys bi-partisan 
     support in the Committee, and we look forward to the 
     Committee's consideration of it.
       CIAT thanks you for taking a significant step towards 
     securing the economy against terrorism risk by scheduling 
     this mark-up.
                                  ____

                                                 October 16, 2007.
     Hon. Christopher J. Dodd,
     Chairman, Senate Committee on Banking, Housing, and Urban 
         Affairs, Dirksen Senate Office Building, Washington, DC.
     Hon. Richard Shelby,
     Ranking Member, Senate Committee on Banking, Housing, and 
         Urban Affairs, Dirksen Senate Office Building, 
         Washington, DC.
       Dear Chairman Dodd and Ranking Member Shelby: We, the 
     undersigned sports leagues, write to express our strong 
     support for your Committee's efforts to extend the Terrorism 
     Risk Insurance Extension Act (TRIEA) before it expires at the 
     end of this year.
       Sports venues are more than just buildings where 
     professional and amateur athletic teams compete. These iconic 
     buildings are a source of public pride for millions of sports 
     fans, and, with capacities that can sometimes exceed 100,000, 
     are the sites of huge public gatherings year-round. In most 
     cases, sports venues are the result of public-private 
     partnerships that involve significant financial commitments 
     from taxpayers. And very often, they serve as anchors for 
     private investment in communities across the country.
       In the current environment, it is critical that arenas and 
     stadia continue to be insured against a terrorist act. The 
     federal backstop established by Congress in 2002 has been a 
     tremendous success, and is the only reason that such 
     insurance remains available to policyholders. We are 
     therefore pleased that the Committee will be taking up 
     extension legislation this week, and we urge its prompt 
     passage.
       In addition, because many of our venues are located in 
     densely populated areas, we further hope you will include 
     language similar to that in the House-passed bill (HR 2761). 
     providing private insurers with an incentive to make coverage 
     available in those areas where they would otherwise impose 
     coverage limits due to the perceived risk of terrorism.
       Ensuring minimum economic disruption from a terrorist 
     attack is an important national objective, and guaranteeing 
     the continued availability of terrorism insurance is a key 
     component of that goal. Once again, we are grateful to the 
     Committee for its history of supporting TRIEA and strongly 
     support its extension.
                                  ____

                                           National Association of


                                   Mutual Insurance Companies,

                                                 October 16, 2007.
     Hon. Christopher J. Dodd,
     Chairman, Committee on Banking, Housing and Urban Affairs, 
         U.S. Senate, Washington, DC.
     Hon. Richard Shelby,
     Ranking Member, Committee on Banking, Housing and Urban 
         Affairs, U.S. Senate, Washington, DC.
       Dear Chairman Dodd and Senator Shelby: On behalf of the 
     National Association of Mutual Insurance Companies (NAMIC) 
     and our over 1400 member companies we want to express our 
     support for the Committees' ``Terrorism Risk Insurance 
     Program Reauthorization Act of 2007.''
       With the Terrorism Risk Insurance Extension Act (TRIEA) set 
     to expire on December 31st, this legislation is vital in 
     continuing this much needed program. Following the terrorist 
     attacks on September 11, 2001, it became clear that some form 
     of federal involvement was needed to help stabilize the 
     marketplace. Despite some improvements in the marketplace, 
     NAMIC believes that the current TRIA program must be 
     reauthorized to assure an orderly economic recovery after the 
     next terrorist attack.
       By eliminating the distinction between foreign and domestic 
     terrorism, maintaining insurers' copayments and deductibles 
     at existing levels and extending the program for seven years, 
     we feel strongly that this bill assures that terrorism 
     coverage will continue to be available to policyholders. 
     While we strongly support the base bill, we would like to 
     continue to work with the Committee to try to lower the 
     current event trigger level to $50 million to assure that 
     small and medium-sized property and casualty companies are 
     not squeezed out of the marketplace.
       We look forward to continuing to work with you as this 
     important bill moves through the legislative process.
           Sincerely,
                                              Charles M. Chamness,
     President and CEO.
                                  ____



                                 Mortgage Bankers Association,

                                 Washington, DC, October 16, 2007.
     Hon. Christopher J. Dodd,
     Chairman, Senate Committee on Banking, Housing, and Urban 
         Affairs, Dirksen Senate Office Building, Washington, DC.
     Hon. Richard C. Shelby,
     Ranking Member, Senate Committee on Banking, Housing, and 
         Urban Affairs, Dirksen Senate Office Building, 
         Washington, DC.
       Dear Chairman Dodd and Ranking Member Shelby: As you 
     prepare to mark up the ``Terrorism Risk Insurance Program 
     Reauthorization Act of 2007'' (TRIPRA), the Mortgage Bankers 
     Association (MBA) believes the seven-year extension in the 
     Chairman's Mark signals to the real estate finance industry 
     and the nation as a whole that terrorism risk insurance will 
     remain available and affordable over an extended period of 
     time. This certainty bolsters the capital market's confidence 
     in the commercial and residential real estate finance 
     industries and fosters market stability.
       In addition, recently uncovered domestic and international 
     terrorist plots indicate that the distinction between foreign 
     and domestic source terrorism has blurred to the point where 
     such distinctions are meaningless. Accordingly, we strongly 
     support the clarifying language contained in TRIPRA that 
     eliminates this distinction and allows domestic source 
     terrorism to be included in TRIPRA.
       MBA remains concerned about nuclear, biological, chemical 
     and radiological (NBCR) risks We stand ready to participate 
     in an effort that would bring together the federal 
     government, policy holders, the insurance industry, and 
     insurance regulators to perform a comprehensive evaluation of 
     the challenges facing the development of the NBCR insurance 
     market and provide recommendations for overcoming these 
     challenges.
       Once again, MBA commends you for working together to extend 
     TRIEA. A long-term extension helps provide the clarity and 
     certainty of the federal government's response to a terrorist 
     attack will serve as an important deterrent to future 
     attacks. MBA salutes you for this effort and offers its full 
     support of TRIPRA.
           Very truly yours,
                                                  Kieran P. Quinn,
     Chairman.
                                  ____

                                         Building and Construction


                                            Trades Department,

                                  Washington, DC, October 1, 2007.
     Hon. Christopher Dodd,
     Chairman, Committee on Banking, Housing and Urban Affairs, 
         Washington, DC.
       Dear Chairman Dodd: I am writing to you to encourage prompt 
     action on the issue of terrorism risk insurance. This issue 
     is of critical importance to my members and their families 
     all across the United States. For those of us whose jobs 
     depend on this important coverage to do business, this is not 
     just an issue of protecting the investments of pensioners, 
     shareholders, bondholders and individuals from across the 
     nation. It is an issue of jobs and our national economic 
     security.
       Since 9/11, the threat of terrorism remains a clear and 
     present danger as are the economic risks associated with this 
     peril. The Terrorism Risk Insurance Act (TRIA) and its 
     extension have been essential to those of us who depend on 
     this coverage. But the current law, TRIA, is, as you know, 
     set to expire in just over 3 months, and people now in the 
     market for terror coverage that extends into next year are 
     being told that their coverage will end if Congress fails to 
     act.

[[Page 31859]]

       The essential facts that motivated Congress to enact TRIA 
     in 2002 have not changed. Terrorism continues to be an 
     unpredictable threat with potentially mammoth losses. 
     Insurers continue to say terrorism risk is uninsurable. Our 
     economy continues to need terrorism insurance in order to 
     function in the face of the terrorist threat.
       Most importantly, our economy needs the framework the 
     program provides to enable us to recover quickly and 
     efficiently after some future terrorist attack. If not 
     extended, the real victims will be the millions of good men 
     and women who depend on the construction industry for their 
     livelihood.
       We encourage you as Chairman of the Senate Banking 
     Committee to enact an effective long-term federal program as 
     soon as possible.
       Thank you for the opportunity to comment on this important 
     national issue.
           Sincerely,
                                                    Mark H. Ayers,
     President.
                                  ____



                                     American Bar Association,

                                 Washington, DC, October 16, 2007.

     Hon. Christopher J. Dodd,
     Chairman, Committee on Banking, Housing and Urban Affairs, 
         U.S. Senate, Washington, DC.
       Dear Mr. Chairman: We understand that tomorrow your 
     Committee will markup legislation to reauthorize the 
     Terrorism Risk Insurance Act (TRIA). We urge your Committee 
     to approve legislation that is permanent or that extends TRIA 
     for a term of years that is as long as possible.
       The ABA believes it is very important to pass a long-term 
     or permanent reauthorization of TRIA, which was enacted after 
     September 11, 2001, in order to create a program that helps 
     stabilize the commercial property and casualty insurance 
     markets and ensures the continued availability of terrorism 
     insurance for U.S. businesses. Terrorism insurance is 
     required by banks and financing 
     institutions prior to approving loans on commercial real 
     estate projects and development. Insurance companies are 
     reluctant to offer terrorism insurance without TRIA, which is 
     set to expire at the end of December 2007. In order to 
     prevent market disruption, it is critical for Congress to act 
     promptly so that new policies for 2008 can be written by 
     insurers and purchased by policyholders prior to TRIA's 
     expiration.
       TRIA has helped stabilize the price of terrorism insurance 
     by reducing the amount of risk borne by insurers. Without 
     this federal backstop, many insurers would not provide 
     terrorism coverage. The unpredictability of terrorism 
     diminishes the ability of the private market to underwrite 
     this risk, which is significantly more difficult to predict 
     and model than other kinds of risks. The risk is so variable 
     and difficult to predict that insurers and reinsurers will 
     only put limited amounts of capital at risk. The government 
     backstop helps to consolidate the risk of catastrophic events 
     so that the consequences of modeling mistakes are shared by 
     the federal government and the private insurance industry, 
     rather than by individual insurers alone.
       A government backstop is especially needed in the area of 
     insurance coverage for nuclear, chemical, biological, and 
     radiological attacks. At the present time, there is little 
     insurance available for such attacks apart from coverage 
     mandated by state law, such as workers compensation.
       The government-industry partnership benefits policyholders 
     and the economy. Some critics of TRIA improperly characterize 
     it as an ``industry bailout'' bill. Such rhetoric is both 
     overblown and misplaced. After September 11, and prior to 
     TRIA's enactment, exclusions from terrorism risk were 
     approved in 45 states and the District of Columbia. It is 
     therefore reasonable to assume that without sufficient 
     reinsurance, or another financial loss-sharing mechanism like 
     the federal backstop, most insurers could simply exclude 
     terrorism risk from their coverage.
       The federal government, because of its massive national 
     security apparatus and its superior access to information, is 
     in the best position to partner with the insurance industry 
     to provide terrorism insurance. Moreover, experience has 
     shown that the government will likely provide assistance to 
     victims of a major terrorist attack; it behooves the federal 
     government to be involved prior to the attack in order to 
     receive the benefits of advance planning, risk management, 
     capital accumulation, and the opportunity to use the 
     underwriting and claims expertise of the insurance industry.
       We urge your Committee to approve legislation that would 
     provide for the permanent or long-term reauthorization of 
     TRIA.
           Sincerely,
                                                Denise A. Cardman,
     Acting Director.
                                  ____



                                   America's Comunity Bankers,

                                 Washington, DC, October 16, 2007.
     Hon. Christopher J. Dodd,
     Chairman, Committee on Banking, Housing and Urban Affairs, 
         U.S. Senate, Washington, DC.
     Hon. Richard Shelby,
     Ranking Member, Committee on Banking, Housing and Urban 
         Affairs, U.S. Senate, Washington, DC.
       Dear Chairman Dodd and Ranking Member Shelby: On behalf of 
     America's Community Bankers (ACB) and its member banks 
     representing over $1.7 trillion in assets across the nation, 
     I am writing to express our strong support for the Terrorism 
     Risk Insurance Program Reauthorization Act of 2007 and the 
     Flood Insurance Reform and Modernization Act of 2007. These 
     two pieces of legislation, scheduled for consideration during 
     the Committees Executive Session on Wednesday, October 17, 
     2007 will provide much needed certainty to both the 
     commercial and residential lending market by ensuring that 
     adequate terrorism and flood insurance safeguards remain both 
     affordable and available They will also provide certainty to 
     our nation's lenders who require these types of coverage for 
     the commercial and residential loans they originate
       ACB particularly appreciates the inclusion of a provision 
     that extends the terrorism risk insurance program beyond what 
     has become a standard two years. This will allow time for the 
     private market to innovate and develop private-based 
     solutions for permanently covering this level of risk.
       We commend you both for crafting balanced legislation that 
     will ensure adequate continuity in our nation's lending and 
     insurance markets, and we look forward to working with you in 
     passing these very important bills.
           Sincerely,

                                              Robert R. Davis,

                                      Executive Vice President and
     Managing Director, Govt. Relations.
                                  ____

                                              National Association


                                                  of Realtors,

                                 Washington, DC, October 16, 2007.
     U.S. Senate,
     Committee on Ranking, Housing & Urban Affairs, Washington, 
         DC.
       Dear Senator: On behalf of more than 1.3 million members of 
     the National Association of REALTORS (NAR), I 
     commend the Senate Committee on Banking, Housing and Urban 
     Affairs for developing a bipartisan bill extending the 
     terrorism Risk Insurance Program. NAR, supports the Terrorism 
     Risk Insurance Program Reauthorization Act (TRIPRA) being 
     considered on Wednesday, October 17.
       The availability of terrorism insurance is vital to the 
     continued strength of the commercial real estate markets. 
     Without a reauthorization of the Terrorism Risk Insurance 
     Program by the end of the year, terrorism coverage will 
     likely become unaffordable and widely unavailable. As we 
     continue to fight the WAR on terror, our enemies may look 
     beyond the iconic real estate of our major urban centers and 
     consider soft targets such as shopping centers and suburban 
     offices. NAR supports a comprehensive extension of the 
     Terrorism Risk Insurance Program which provides a long-term 
     duration, eliminates the distinction between foreign and 
     domestic acts of terrorism, and evaluates whether the federal 
     backstop program should be strengthened to enable insurance 
     providers to make nuclear, biological, chemical, and 
     radiological event coverage available at an affordable rate.
       Again, I thank the Senate Committee on Banking, Housing and 
     Urban Affairs for addressing the need to extend the Terrorism 
     Risk Insurance Program in a timely and comprehensive manner. 
     NAR urges you to support TRIPRA.
           Sincerely,

                                                 Pat V. Combs,

                                                   2007 President,
     National Association of Realtors.
                                  ____

                                        Property Casualty Insurers


                                       Association of America,

                                 Washington, DC, October 16, 2007.
     Hon. Chris Dodd,
     Chairman, Committee on Banking, Housing and Urban Affairs, 
         U.S. Senate, Washington, DC.
     Hon. Richard Shelby,
     Ranking Member, Committee on Banking, Housing and Urban 
         Affairs, U.S. Senate Washington, DC.
       Dear Chairman Dodd and Senator Shelby: The Property 
     Casualty Insurers Association of America (PCI) supports the 
     bill you have drafted to extend the Terrorism Risk Insurance 
     Act (TRIA), without amendments. We represent more than 1,000 
     members who insure America's large and small businesses in 
     every sector of the economy.
       TRIA works. This program has successfully protected 
     millions of individuals, businesses and the U.S. economy 
     since January 2003 and has made it possible for insurers to 
     cover an otherwise uninsurable risk. We greatly appreciate 
     the leadership both of you have shown in crafting legislation 
     to renew this vital program that has been a foundation on 
     which America's economic strength is built. We are 
     particularly appreciative of the exclusion of a mandatory 
     ``make available'' requirement for nuclear, chemical, 
     biological and radiological (NBCR) attacks, and also of the 
     inclusion of a seven-year term, which will allow time for a 
     fair analysis of the potential for private sector growth in 
     this market.

[[Page 31860]]

       We look forward to our continued work with you as this 
     much-needed bill moves through the Senate.
           Sincerely,
                                                   Benjamin McKay,
     Senior Vice President.
                                  ____

         National Multi Housing Council and National Apartment 
           Association,
                                 Washington, DC, October 16, 2007.
     Hon. Christopher Dodd,
     U.S. Senate,
     Washington, DC.
       Dear Chairman Dodd: On behalf of the National Multi Housing 
     Council (NMHC) and the National Apartment Association (NAA), 
     we would like to express our strong support for the 
     ``Terrorism Risk Insurance Program Reauthorization Act of 
     2007'' (TRIPRA).
       The NMHC and the NAA represent the nation's leading firms 
     participating in the multifamily rental housing industry. Our 
     combined memberships are engaged in all aspects of the 
     apartment industry, including ownership, development, 
     management, and finance. The NMHC represents the principal 
     officers of the apartment industry's largest and most 
     prominent firms. The NAA is the largest national federation 
     of state and local apartment associations. NAA is comprised 
     of 190 affiliates and represents nearly 50,000 professionals 
     who own and manage more than 6 million apartments. NMHC and 
     NAA jointly operate a federal legislative program and provide 
     a unified voice for the private apartment industry.
       We are extremely pleased with the proposed 7-year 
     extension. This recognizes the long-term need for the program 
     and will bring certainty to the market relative to pricing 
     and capacity. With the December 31, 2007 expiration date of 
     the program quickly approaching, we are reminded of the 
     interruptions that result with looming expiration dates that 
     are harmful to the overall health of the market for terrorism 
     insurance. Certainty in costs and coverage limits are 
     critical components in a multifamily property owner's 
     continued ability to offer safe and affordable housing. We 
     are also pleased to see the elimination of the distinction 
     between foreign and domestic acts of terrorism.
       The Terrorism Risk Insurance Act of 2002 (TRIA) and the 
     Terrorism Risk Extension Act of 2005 (TRIEA) have been the 
     mechanism that provides ready access to affordable terrorism 
     insurance coverage for commercial property owners and 
     developers, as well as countless small and large companies 
     throughout the United States. The real estate industry 
     represents one of the highest take up rates among all 
     policyholders for terrorism coverage. According to results of 
     the NMHC 2007 Risk Survey, 87.1 percent of apartment firms 
     surveyed purchased terrorism coverage as part of their 
     property program.
       NMHC/NAA remain optimistic that over time private market 
     solutions will reduce or eliminate the need for federal 
     support. However, we are not there yet. Until such time we 
     support the federal government's continued role to ensure 
     that terrorism risk insurance is available and affordable for 
     all American businesses. We encourage your support for the 
     ``Terrorism Risk Insurance Program Reauthorization Act of 
     2007'' (TRIPRA).
       Thank you for your support of this critical program.
           Sincerely,

                                                   Jim Arbury,

                                            Senior Vice President,
                                               Government Affairs.

  Mr. COBURN. Mr. President, I ask unanimous consent to speak as in 
morning business.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mr. REID. May I ask the Senator to withhold for a couple minutes?
  Mr. COBURN. Absolutely.

                          ____________________