Tuesday, November 25th, 2003 — As part of the recently passed Department of Homeland Security appropriation bill, all remaining subrogation claims associated with New Mexicos 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.