The senators offered a tort reform concept based on the teacher liability provisions of H.R. 1, which is called the No Child Left Behind Act.

Under H.R. 1, punitive damages could not be awarded against a teacher in an action brought for harm if the teacher acts within the scope of his or her responsibilities unless the plaintiff establishes by "clear and convincing evidence" that any harm was proximately caused by the actions of a teacher.

Moreover, the evidence would have to show that the teacher's actions constitute "willful or criminal" misconduct or "a conscious, flagrant indifference to the rights and safety of the individual harmed."

Sens. Dodd and Schumer sent this language to the White House and asked President Bush to agree that it serve as the basis for any tort reform provisions in the terrorism insurance bill.

As of this writing, the White House had not yet responded.

However, two leading Republicans, Reps. F. James Sensenbrenner Jr., R-Wis., who chairs the House Judiciary Committee, and Sen. Phil Gramm, R-Texas, say that the offer by Sens. Dodd and Schumer does not go far enough.

They note that also under H.R. 1, the doctrine of joint and several liability is eliminated for non-economic damages. This means that defendants are responsible only for their own share of any losses.

Rep. Sensenbrenner and Sen. Gramm say that elimination of joint and several liability was not included in the Dodd/Schumer offer to the White House.

They said they hope that everyone can agree that it is "outrageous, unwise and unfair" to hold American businesses responsible for damages caused by terrorists.

In addition, Rep. Sensenbrenner and Sen. Gramm said, Sens. Schumer and Dodd do not address other tort issues, including a reasonable limit on attorneys' fees drawn from the Treasury and requiring any awards to be reduced by payments from other sources, such as life insurance.

As for the insurance provisions of the legislation, sources told National Underwriter that negotiators were still working on the amount of any payback provision in the legislation.