"Enacted in response to the events of September 11, 2001, the Terrorism Risk Insurance Act (TRIA) created a temporary federal reinsurance program for terrorism insurance. The program had two main aims: to limit insurance companies' risks of financial loss from terrorist attacks and to increase the availability of terrorism coverage for property owners. TRIA is scheduled to expire on December 30, 2005, and the Congress has been considering proposals to extend the terrorism reinsurance program. This Congressional Budget Office (CBO) paper--prepared at the request of the Senate Budget Committee - analyzes the TRIA program and assesses changes in insurance markets since the law's enactment in November 2002. The paper builds on two previous CBO reports: 'Federal Reinsurance for Disasters' (September 2002) and 'Federal Reinsurance for Terrorism Risks' (October 2001). In keeping with CBO's mandate to provide objective, impartial analysis, this paper makes no recommendations."
Congressional Budget Office: http://www.cbo.gov