The 371-49 vote on S. 467 sets up a conference between the House and Senate to reconcile vastly different bills. Congress wants to adjourn for the year by Dec. 17.

In a report to members, Ken Crerar, president of the Council of Insurance Agents and Brokers, said he was "very pleased initial reports from the spokesman for Senate Banking Committee Chairman Richard Shelby have been conciliatory in anticipation of a House-Senate conference, whereas there had been widespread speculation previously that [Sen.] Shelby would not budge from the Senate-passed bill that he negotiated with Sens. Chris Dodd and Robert Bennett, [R-Utah]."

Although Sen. Shelby, the Alabama Republican, is committed to his version of the bill, his representative, Andrew Gray, said he also "has been pretty clear that we need to pass an extension this year." TRIA is set to expire on Dec. 31.

Sen. Dodd, D-Conn., primary sponsor of the Senate bill, said TRIA extension "should be a top priority. Our nation can't afford to ignore the very real threat of future terrorist attacks. Extending TRIA will help provide important protections against the risk of terrorism to our economy and jobs."

Leigh Ann Pusey, the American Insurance Association's senior vice president for government affairs, said "we appreciate that the House acted in a decisive and timely manner. We are confident the same type of leadership will prevail in getting the House and Senate bills reconciled. Our nation's economic security depends on it."

"We are now on the cusp of keeping a much-needed terrorism backstop in place," added Charles E. Symington Jr., senior vice president for government affairs and federal relations for the Independent Insurance Agents and Brokers of America.

As expected, the Bush administration immediately issued a statement saying the White House "strongly opposes" the House bill, and by implication backs the more bare-bones Senate language. "The administration appreciates the House's efforts to craft legislation consistent with the reform objectives," the White House said, "but the House amendment to S. 467 in its current form does not meet these goals."

The vote, with only staunch House conservatives in the negative, constituted a huge victory for Reps. Mike Oxley, R-Ohio, who chairs the Financial Services Committee, and Richard Baker, R-La., chair of the key Capital Markets Subcommittee. In remarks on the House floor, Rep. Oxley said, "This is the only bill that provides for a long-term solution." Without the House provisions, he added, "we'll be back here in 12 months seeking another extension with no improvement."

Rep. Barney Frank, D-Mass., ranking minority member of the committee, added: "Better late than never. I wish we had done this earlier." He said he was "pleased with this bill in general," noting that while there are differences between the House and Senate versions, in his opinion, "none…are of enormous difficulty."

"I do not regard this as a favor to the insurance companies," Rep. Frank said, adding that insurers don't have to provide coverage, or can provide it only at very high cost–especially in major cities. "The losers, if we don't enact this legislation, are the people who want to build in these areas of the country," he said.

Mr. Crerar noted one key difference (for others, see the infographic linked below). The Senate bill would create a "President's Working Group" that would make recommendations for any additional actions. "Because the Treasury Department released its very negative report on TRIA in June, it is highly unlikely that such a working group would encourage any lasting federal role in securing the terrorism marketplace," he said.

Flag: Take Your Pick

Head: What's The Difference?

House and Senate conference committee members will have their work cut out for them trying to reconcile two very different versions of legislation saving the Terrorism Risk Insurance Act from expiration on Dec. 31. Among the key distinctions:

o Longevity: The Senate wants to terminate the TRIA reinsurance program in two years, while the House envisions a longer-term solution.

o Coverage: The House bill expands coverage, including group life, while the Senate looks to cut certain lines.

o Deductibles: The House bill would establish a silo approach, with different retention levels depending on the line, while the Senate sets a single retention level of 17.5 percent for the first year, and 20 percent in the second year.

o Support: The White House backs the Senate's bare-bones renewal and strongly objects to the House's more ambitious approach. It will be interesting to see how this plays out, as the House bill's champion–Rep. Mike Oxley, R-Ohio, chairman of the Financial Services Committee–will chair the conference committee.