Bush Due To Urge Backstop Today
By Steven Brostoff, Washington Editor
NU Online New Service, April 8, 1:57 p.m. EST, Washington?President George W. Bush is expected to publicly prod the Senate later today to pass legislation creating a federal backstop for insurance losses caused by acts of terrorism.
At a meeting with insurance, business, labor and other representatives, the President is expected to say that the failure of the Senate to pass legislation is harming the economy.
The president is expected to warn that lack of terrorism insurance is forcing businesses to cancel activities that would help the economy move forward as it emerges from the recession.
The House last year approved H.R. 3210, which would establish a federal government loan program for terrorism-related losses above a mandatory industry retention level.
The Senate has been considering a quota-share proposal under which the federal government would pay up to 90 percent of terrorism-related losses, which the insurance industry would not have to repay. However, the proposal has been tied up since last year over the issue of tort reform.
A large number of insurance and business representatives are expected to stand with President Bush at the public event, which is tentatively scheduled for 4:30 p.m. Eastern time today. Check the NU Online News Service tomorrow morning for full coverage of the president's remarks and industry reaction.
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