Terrorism Insurance Extension Act of 2004 - Amends the Terrorism Risk Insurance Act of 2002 (TRIA) to extend the terrorism risk insurance program from 2005 through 2007.
Repeals the condition on the authority of the Secretary of the Treasury to pay or adjust compensation for insured losses after termination of the program that limits such losses to those arising from an act of terrorism occurring only during the period in which the program was in effect.
Defines "Program Year 4" as calendar 2006 and "Program Year 5" as calendar 2007.
Increases the insurance marketplace aggregate retention amount for Program Years 4 and 5.
Directs the Secretary to apply TRIA to providers of group life insurance.
Instructs the Presidential Working Group on Financial Markets to report to Congress its recommendations for legislation to address the long-term availability and affordability of insurance for terrorism risk.