House Panel Approves Two-Year Terrorism Insurance Extension
The House Financial Services Committee has cleared a two-year extension of the federal "backstop" coverage for terrorism-related claims. By voice vote on Sept. 29, the panel approved a measure that would continue the 2002 Terrorism Risk Insurance Act through December 2007.
Under that law, the Treasury covers terrorism-related claims above certain annual thresholds. In 2004, for example, the Treasury would be responsible for 90% of such claims after an insurer's exposure exceeds 10% of its commercial premiums.