By a 227-193 vote, the House of Representatives passed legislation yesterday that would provide government loans to insurance companies that experience losses due to terrorism.
The vote, which broke largely along party lines, reflects a split between Republicans and Democrats over the issue of liability.
While the legislation approved by the House, H.R. 3210, would bar punitive damages and limit recoveries for non-economic damages, most Democrats supported an alternative measure that contained no limitations.
That alternative, an amendment sponsored by Rep. John LaFalce, D-N.Y, was defeated in a floor vote 197-222.
Specifically, the legislation establishes a government loan program to cover 90% of terrorism losses above an industry-wide retention level of $1 billion.
