The cost of terrorism insurance coverage is expected to become volatile if the federal terrorism insurance backstop is not extended, and uncertainty about what Washington will do is already causing ripples in the marketplace, Marsh says in a new report.

An insurance law firm is warning its clients that if they are not licensed to transact business in New York State, they should review their agents activities to ensure they are not engaging in prohibited insurance transactions in the state.

The private market does not have the capacity to provide reinsurance for terrorism risk to the extent currently provided by the Terrorism Risk Insurance Act, according to a special presidential report issued today.

The Treasury Department, through the Federal Insurance Office, is looking into the affordability and availability of auto insurance, driven in part by the conflicting statements from industry and consumer groups about the issue.

Federal Reserve Board officials are making clear that they have a wait-and-see attitude about support for international initiatives aimed at establishing uniform capital standards for insurance companies.

Insurance associations are welcoming the Senates introduction of a TRIA extension, but some industry officials are concerned about language in the bill.

Legislation was introduced in the Senate that would extend the Terrorism Risk Insurance Act for seven yearsas the insurance industry wants.

Congress plans to tackle reauthorization of the Terrorism Risk Insurance Act starting in early May with Senate Banking Committee action. Sources say the committee is looking at a 7-year extension with slightly higher deductibles.