Terrorism Insurance Legislation on its Way

WASHINGTON, DC-The US House of Representatives has passed a compromise version of terrorism insurance legislation, signing off on a bill that calls for the government to cover 90% of insured terrorism-related losses beyond $15 billion annually over the next three years. The federal insurance backstop has a cap of $90 billion per year. Now, it is up to Senate members to pass the joint version of the bill before it is sent to the president’s desk.

The news came last night as House members passed the legislation via voice vote during Congress’s lame-duck session. Despite months of frequent and consistent prodding from the real estate, insurance and construction industries, this major step foreword comes well over a year after the Sept. 11 attacks, which left insurers with a $40-billion bill for insurance claims. The House was the first congressional chamber to sign off on a version of the legislation, passing its bill by the end of 2001. The Senate followed with its version earlier this year. But partisan wrangling among conference committee members over punitive damages has held up the formation of a joint package.