The US Terrorist Risk Insurance Act (TRIA) extension has been approved by the House Financial Services Committee and will now go before the House of Representatives.

The legislation could reach the house as early as this week. If approved it will extend the act to the end of 2007.

The committee also approved an amendment to the Terrorism Insurance Backstop Extension Act – adding life insurance to the insurance lines covered by the law.

However, if the legislation is not approved before the Presidential election in November, it is hoped that Congress will renew the TRIA when it reconvenes before the end of the year to look over important legislation.

Lobby groups are maintaining their pressure on Congress after most insurers indicated to clients that they will not offer terrorism coverage without a federal backstop.