Capitol Beat
Tuesday, November 25th, 2003 Legislation & Regulation Liability Property SubrogationAs part of the recently passed Department of Homeland Security appropriation bill, all remaining subrogation claims associated with New Mexico’s Cerro Grande fire have been settled. The fire began as a controlled burn by the National Park Service in the Bandelier National Monument in May 2000. When it got out of control, it caused approximately $200 million in insured damages, resulting in 16,000 claims. The federal government assumed full responsibility. The appropriation bill provides $38,062,000 to cover subrogation claims, with administrative costs not to exceed 5 percent. “We hope this bill will be a complete solution,” said Carl Parks, senior vice president of government relations, for the National Association of Independent Insurers.
