It is incredible that after whooping it up on Election Day to celebrate gaining control of not one, but both houses of Congress, the Democrats are now bracing for bitter disappointment if South Dakota Senator Tim Johnson is unable to fill out his term after falling ill earlier today. It just goes to show you how tightly split the country is politically, and even culturally, when a life-threatening illness hitting one U.S. Senator could upset the country's balance of power and turn the Congressional agenda on its head. Meanwhile, the development could have a substantial impact on the insurance industry's legislative wish list.

Having the Republicans maintain control over the Senate after all could mean the industry will have a lot more trouble accomplishing its most important federal goal in 2007–extending the reinsurance backstop under the Terrorism Risk Insurance Act.

Leading Democrats–such as Sen. Chris Dodd, from the insurance stronghold of Connecticut–has been saying he not only wants quick action on TRIA (set to expire around this time next year), but would rather implement a longer-term, perhaps even permanent solution.