The memo noted that the House has already moved to appoint conferees to try to reach a compromise with Senate leaders.

But, another industry lobbyist was decidedly pessimistic that the White House and Senate Republican leadership are in any mood for compromise on what they consider a core Red-vs.-Blue-state issue.

The lobbyist, who would not be quoted by name, said, "The House is delusional in thinking that the White House and the Senate Republican leadership would agree to expand the program by adding group life and domestic terrorism [coverage]."

Specifically, in comments late yesterday, a spokesman for Sen. Richard Shelby, R-Ala., chairman of the Senate Banking Committee, said that given that there isn't enough time left this year for a formal conference on vastly different House and Senate bills extending TRIA, the House should just take the Senate's austere version of extension legislation and leave it at that.

One of the reasons for Sen. Shelby's approach–which was immediately embraced by Senate Majority Leader William Frist, R-Tenn.–is that if there is a formal conference, Rep. Mike Oxley, R-Ohio, would chair such a conference.

That would give the House some leverage in insisting that at least some of the provisions of the House bill, far more favorable to the insurance industry, be adopted.

The comments by Sens. Shelby and Frist, supported by the White House, were made despite the approaching deadline and despite the fact that an overwhelming majority of the members of Congress in both Houses support a renewal of TRIA.

Congress wants to finish its business by Dec. 17 for this year at the latest, and TRIA expires Dec. 31.

"Given the substantial differences in the two bills, we don't believe there is time to finish a conference this year," said Sen. Shelby's spokesman, adding that the chairman hopes to pass a temporary extension of TRIA, but that he and the White House prefer the Senate's version.

The Senate version reduces the lines of business covered by an extension of TRIA and insists the program cease to exist when it sunsets Dec. 31, 2007.

The House version, by contrast, adds group life insurance to the lines covered, provides a road map for a smoother transition to an entirely private market, and provides government support based on the likelihood that an insurer can get reinsurance for a particular line of coverage.

Sen. Shelby's office spokesman called the Senate bill the "right approach."

But Kimberly Olson Dorgan, senior vice president for federal relations at the ACLI, said, "Mr. Shelby has been working closely with the White House to develop a bill that closely mirrors the White House's position.

"I'm not sure why [Mr. Shelby] has avoided a conference, but certainly it's clear where he wants it to end up," Ms. Dorgan added. "Unfortunately, we fear it's a tactic to keep the group life insurance provisions from the final bill."

Julie Rochman, senior vice president for public affairs at the American Insurance Association, said her group hopes "members can get together and develop a single product that can be enacted. There is broad bipartisan support in both houses for action."

In his memo to members, Ken Crerar, president of the CIAB, said: "Sen. Shelby and the White House support a more Spartan program and it is expected that Senate leaders would support their committee's bill for adoption.

"However, most observers agree that it is highly unlikely the House will take the Senate bill as is or that the program will be allowed to expire," Mr. Crerar said. "Most likely a dialogue will begin in earnest over the weekend and early next week to reconcile the bills."