http://www.nytimes.com/2014/12/17/business/terrorism-insurance-is-rejected-in-the-senate.html 2014-12-17 05:19:32 Terrorism Insurance Is Rejected in the Senate A retiring senator refused to drop his opposition to an extraneous measure that had been added at the last minute by House Republicans. === WASHINGTON — Federal terrorism insurance, the government backstop that was first passed in the wake of the Sept. 11, 2001, terrorist attacks, died in the Senate on Tuesday night after a retiring senator refused to drop his opposition to an extraneous measure that had been added at the last minute by House Republicans. The rejection of the Terrorism Risk Insurance Act, which was renewed in the Senate in July by a 93 to 4 vote, was a surprise blow to the redevelopment of Lower Manhattan and other areas considered potential terrorism targets. Difficult negotiations earlier this month between Senator Mr. Schumer, backed by dozens of House and Senate Republicans, wanted that deal tucked into the $1.1 trillion spending bill that passed on Saturday to keep the government funded. Instead, Mr. Hensarling pressed to move the terrorism bill separately, and two more provisions were added — one that would make some dealers in financial instruments like derivatives exempt from regulations under the Dodd-Frank law of 2010, and another that would create a new federal board to streamline the licensing of insurance producers. It was the insurance provision that Senator Tom Coburn, Republican of Oklahoma, who is known by his colleagues as Dr. No, would not accept. His objection to considering the package Tuesday night doomed it, possibly for the year. “Several weeks ago I warned Speaker Boehner that if he followed Jeb Hensarling’s dangerous gambit, he risked killing terrorism insurance. Tonight, Senator Coburn struck the final blow,” Mr. Schumer said in a statement, raising the possibility that the terrorism backstop could be resurrected in 2015.