RAND study makes case for TRIA extension: insurance companies paid half of the $38 billion in 9/11 victim compensation.(Terrorism)

National Underwriter Property & Casualty-Risk & Benefits Management, November, 2004 by Postal, Arthur D.

A STUDY BY AN INDEPENDENT think tank that reports insurers paid 51 percent of the $38.1 billion in compensation to victims of the Sept. 11, 2001 terrorist attack points up the urgent need for the Terrorism Risk Insurance Act to be renewed, an insurer group contends. Private-sector insurers paid $19.6 billion of the total compensation given to victims of the attack, the RAND Institute for Civil Justice report found.

Government programs provided $15.8 billion, with the remaining $2.7 billion coming from charitable organizations, RAND noted. As a consequence, the RAND study's authors warn there may be less insurance available for victims of future catastrophic terrorist attacks on U.S. soil. TRIA requires primary insurers to make terrorism coverage available to...

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