Terrorism Bill Faces Roadblock
Washington
Legislation creating a federal backstop in the terrorism insurance market remains bottled up in the Senate amid concerns that it could face yet another roadblock.
Sources told National Underwriter that Sen. Phil Gramm, R-Texas, one of the original sponsors of the Senate bill, is suggesting that the industrys retention level of $10 billion is too low, and should be $10 billion only in the first year, then increased to $20 billion in the second.
Above the retention level, the legislation would establish a quota-share program with the federal government paying up to 90 percent of insured losses arising from a terrorist attack.
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