Senate Passes Bill to Provide Federal Coverage for Terrorism Claims
The Senate approved legislation that provides federal dollars to insurance companies to help pay claims resulting from future terrorist attacks. The vote on June 18 was 84-14. The measure next must be reconciled with a different version the House passed in November. Sources expect a House-Senate conference on the legislation to begin before the start of the congressional July 4 recess.
Since Sept. 11, insurance for risks associated with terrorism has been unavailable or not affordable. Property owners and lenders have become increasingly exposed to catastrophic loss in the event of the next terror attack, claims the Financial Services Roundtable. Many large lenders have refused to issue loans over $25 million without terrorism coverage, the Roundtable notes. "Passage of this critical bill represents a great leap forward for a return to normalcy in the insurance market and alleviate the downward pressure on economic activity that the insurance crisis has created," says Steve Bartlett, Roundtable president.