"We respectfully suggest that such a move would be harmful to commercial insurance consumers, as well as the general public, for a variety of reasons," Mr. Csiszar said.

"Along with property and workers' compensation, general liability and commercial automobile coverages are often written as part of a discounted 'package' or 'program' for a variety of large, midsized and small businesses," Mr. Csiszar said. "Eliminating general liability and commercial auto from the program will make it harder for the most vulnerable employers to obtain affordable coverage tailored to their needs."

As an example, Mr. Csiszar said, many of the nation's hospitals will be on the front line in the aftermath of the next terrorist event. "Our medical and pharmaceutical research facilities serve a key role as well, particularly in the case of a biological or chemical event," he said. "These facilities need a broader array of affordable commercial coverages to remain open and viable."

A decision to include group life would reflect the impressive job the Group Life Coalition has done in pleading the life industry's cases to members of the committee, several lobbyists said.

The proposals for extending TRIA coming out of the House Financial Services Committee are being dubbed "TRIA lite" because they will likely call for a far more modest federal backstop than currently available through TRIA, which expires Dec. 31.

Joel Wood, senior vice president and director of government relations for the Council of Insurance Agents and Brokers, was among three lobbyists contacted by National Underwriter who said that it is their "understanding" that group life is likely to be included in the draft plan the committee staff could unveil as early as this week.

The legislation being drafted calls for reducing the federal backstop for terrorism risk through two alternatives. One is a scaled-back extension of TRIA that would end in two years. The second proposal being drafted would create a pooling mechanism through which the government would gradually end its support as the funds contributed by private industry to various pools grow.

The alternatives are being drafted because the Bush administration and Rep. Tom DeLay, R-Texas, have made clear they won't support a permanent federal backstop for terrorism risk insurance.

But Democrats are unlikely to support the proposal. Democrats in the House want TRIA simply extended for two years while a bipartisan plan calling for an ongoing federal backstop, albeit reduced, is devised.

"The Group Life Coalition has done an outstanding political job of conveying to members of Congress that if the government decides to provide a backstop for buildings, it should provide a backstop to people as well," Mr. Wood said. The other lobbyists, who asked that their names not be used, agreed.

However, in confirming the plan, another lobbyist–who works for a commercial property-casualty insurance company and who asked not to be named out of concern his remarks would anger the White House and congressional staff–said, "It is an absurdity that group life would be included, but that they would scale back the scope of commercial coverage."

The lobbyist added that "there is no affordability or availability issue with group life–but there is with general liability."

Of equal concern, he said, is that what he called the "political decision" to add group life and delete some p-c coverages, such as commercial auto and general liability, means the basic principle behind the initial TRIA law has "become a victim of political expediency."

"The whole idea was providing seamless coverage on all policies," he explained. "Now, these policies will have to be broken apart."