Legislation creating a federal role in financing insurance losses caused by terrorism was introduced last night in the House and the Senate, but the bills take very different approaches.
In the House, Financial Services Committee Chairman Mike Oxley, R-Ohio, and Rep. Richard Baker, R-La., introduced the Terrorism Risk Protection Act that would base federal involvement on a loan program.
In the Senate, Sens. Chris Dodd, D-Conn., and Phil Gramm, R-Texas, are backing a bill that would establish a quota-share program subject to a $10 billion industrywide retention level. The Dodd-Gramm bill is supported by the Treasury Department.
