October 2, 2002 by Canadian Underwriter
U.S. president George Bush has called on a special conference committee appointed by Congress to investigate and draft legislation enabling a single terrorism insurance bill to act swiftly. Bush is pushing for legislation by October 4, just prior to when Congress goes into recess.
The conference committee was established to work out differences between two pieces of proposed terrorism insurance legislation put forward earlier this year by the House of Representatives and the Senate. The two bills in question vary greatly with regard to the role of the federal government in providing "back stop" coverage for terrorism risks, as well as limits applying to tort action.
In his call for swift action, Bush emphasized a previously voiced concern that about US$15 billion in construction projects has been delayed or cancelled since the terrorist attacks of September 11. The implementation of a government-backed terrorism insurance mechanism is critical to the future growth of the economy, Bush says.