Canadian Underwriter

Appointments signal progress for U.S. terrorism insurance bill

July 29, 2002   by Canadian Underwriter

Print this page Share

Despite speculation that legislation to create a government backstop for terrorism reinsurance was stalled, progress seems to be in the offing with the formation of a committee to write a consensus bill. Seven Senators have been appointed to find middle ground between a Congressional bill created late last year and the more recent Senate solution, Bill S. 2006.
Three Republican and four Democratic senators make up the committee, and will be joined by members of the House of Representatives to hammer out a compromise. The Senate plan calls for the government to act as an excess reinsurer, while the House proposal includes loans to be paid back by insurers in the event of a terrorist attack loss. The plans also differ in terms of tort access, a stumbling block throughout the process.
The Risk and Insurance Management Society (RIMS) praised the committee’s formation, with society president Chris Mandel noting, “Appointing the conference committee on the terrorism insurance bill is a critical step in getting the government backstop that commercial policyholders need.”
At the time the appointments were made, RIMS delegates were meeting with legislative staff on Capitol Hill to advance the society’s hopes for a compromise bill. Among the provisions RIMS calls for is risk-sharing between insurers and the government, retention levels set at individual company levels, and a broad definition of terrorism. Inclusion of workers’ comp, business interruption and fire-following coverage are also desired.

Print this page Share

Have your say:

Your email address will not be published. Required fields are marked *