Insurance associations, which had sought introduction and passage of the resolution, noted that the vote added New York State lawmakers to the chorus of groups calling for a TRIA extension.

"The New York Senate joins other elected officials such as the U.S. Conference of Mayors and private sector policyholders throughout the country in recognizing this urgent need," said Leigh Ann Pusey, senior vice president of government affairs for the American Insurance Association.

Insurance companies and trade associations, among others, have noted that TRIA has played an important role in stabilizing the economy by enabling companies to provide terrorism coverage at reasonable rates.

If TRIA is allowed to expire as scheduled at the end of the year, many stakeholders have said the lack of availability for terrorism coverage could cause a slowdown in the markets as construction and other vulnerable projects are put on hold.

"We are pleased that New York legislators recognize the importance of TRIA and are urging those on Capitol Hill to secure an extension of the act," said Kristina Baldwin, regional manager and counsel for Property and Casualty Insurers Association of America (PCI). "Without a federal terrorism insurance backstop in place, market disruption is a near certainty."