Legal problems facing Rep. Michael Grimm, R-N.Y., named sponsor of the preferred House version of legislation reauthorizing the Terrorism Risk Insurance Act (TRIA) are likely to have "zero impact" on House action on the legislation, according to several insurance lobbyists.

Grimm's indictment in Brooklyn comes at a sensitive time for TRIA. The Senate Banking Committee is likely to take up its version of reauthorization legislation by mid-May. And key members of the House Financial Services Committee have asked the Government Accountability Office to prepare by May 15 a report outlining options for renewal that would include a study on the costs and benefits of the TRIA, along with the potential impact of scrapping the law.

Rep. Randy Neugebauer, R-Texas, chairman of the Financial Services panel's Housing and Insurance Subcommittee, one of the representatives who asked for the study, as well as Rep. Jeb Hensarling,R-Texas, are demanding that industry "have more skin in the game" in any renewal legislation. They want to put a conservative "stamp" on the program that could include legislation phasing out the program, or, eventually limiting it to events caused by nuclear, biological, chemical and radiation attacks.