11-10-2001

INSURANCE: Committees Move on Terrorism Insurance

The House Financial Services Committee on November 7 approved bipartisan
legislation providing a federal guarantee to underwrite a portion of
commercial and casualty insurance claims resulting from future terrorist
acts. But the committee was unable to agree on critical sections of the
bill-such as the "trigger" for federal aid to kick in, and the
size of the deductible that the insurance industry would have to meet to
qualify for aid. Rep. Paul E. Kanjorski, D-Pa., indicated that the panel
was leaning toward a threshold of $5 billion in the first year and $10
billion in the second, with some sort of flexible repayment mechanism.
Members pledged to work on that issue as the bill quickly moves to the
House floor. Meanwhile, the Senate Banking, Housing, and Urban Affairs
Committee has been working informally on a terrorism insurance proposal
since last month, but has yet to actually introduce legislation. The
Senate proposal has won kudos from the White House. But because of the
inclusion of tort reform language considered anathema by the trial bar and
by Senate Democratic leaders, so far the measure is being viewed as dead
on arrival on the Senate floor.


Pamela Barnett/CongressDaily

National Journal