# Senate Eyes Quota-Share Terrorism Coverage 

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Insurance industry representatives said today they are encouraged by draft language for a proposed foreign terrorism reinsurance bill that was circulating among U.S. Senate Democrats.

But the measure, that would involve a quota-share system and was expected to see action on Tuesday, Dec. 18, still faces a number of hurdles, including sharp differences from the measure approved by the House of Representatives.

"I'm encouraged we have a chance to get something done," said Dave Farmer, senior vice president for federal affairs with the Alliance of American Insurers in Downers Grove, Ill.

The one-page draft states that the proposed bill would establish a temporary one-year program that the Treasury secretary can extend to a second year.

The proposal would limit the measure to property and casualty insurance and exclude life and health insurance.

Sources:
- National Underwriter (http://www.nationalunderwriter.com/pandc/hotnews/ArcPC.asp?article=12_14_01_15_3581.xml)