When the Terrorism Risk Insurance Act was first signed into law by President George W. Bush in 2002, there was a gala ceremony, a picture of which graced our cover as the story of the year–quite a contrast to last month, when the president only grudgingly signed an extension on his way out the door to Camp David.

The White House was disappointed no private market solution emerged to take TRIA's place before its Dec. 31, 2005 expiration. While that expectation was unrealistic, given the potential magnitude and unpredictability of another terrorist strike, skeptics in the administration and Congress continue to see TRIA as a temporary bridge to a more permanent, privately-financed alternative.

TRIA's opponents believe the program not only isn't the solution for the long haul, but in fact is a big part of the problem in finding that solution. This crowd blames the existence of a federal backstop for discouraging the private market from coming up with an alternative. If necessity is the mother of invention, their reasoning goes, TRIA eliminated the need for insurer creativity in covering terrorism–therefore, no private market option was invented.