Friday was the deadline given by US President George Bush to the lawmakers responsible for finalising the terror insurance bill. However with America now edging closer to war with Iraq, it seems things have been put on hold.

Once completed, the legislation would make the US Government the insurer of last resort in the event of another devastating terrorism attack. Insurers have continued to be open with the Government advising it that they can deal with the claims resulting from September 11, but that a disaster of similar size and nature would cripple the industry.

As a result there is hope of the US Government committing to a threshold at which it would take responsibility for paying part of claims. Discussions are still under way with legislators in the House proposing a $1.8 billion threshold and the Senate looking at $18.3 billion.