Congress puts us all at risk. (Editorial Comment).(federal terrorism reinsurance gridlock)(Brief Article)(Editorial)

National Underwriter Property & Casualty-Risk & Benefits Management, June, 2002

Will it really take another terrorist attack to break the political gridlock in Congress and get a federal terrorism reinsurance backstop in place? Unless the political dynamics change in a hurry, that could very well be the case. The logjam is in the Senate, where tort reform disputes have tied up a bill to provide quota-share reinsurance.

The Senate proposal is very different from the one passed by the House late last year, which establishes a loan program. Since insurers need reinsurance, not loan guarantees, to start writing terrorism coverage again, the House bill won't do the trick, but at least they are poised to negotiate a compromise on a final measure everyone can live with. The Senate "isn"t missing the forest for the trees, they're missing the...

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