Insurers Can Get Backstop, Not Bailout, House Committee Says
Thursday, October 25th, 2001 Legislation & RegulationThe House Financial Service Committee probably will not even consider a terrorism insurance program that does not have a significant amount of participation by private insurers, a top committee staffer said on Tuesday. Robert Gordon, senior counsel to the Committee, said that while there is a real sense among Committee members that something has to be done, the insurance industry has not fully made its case about the extent of potential market disruptions. Speaking at a meeting sponsored by the Kansas City, Mo.-based National Association of Insurance Commissioners, Mr. Gordon said that a lot of insurance crises have occurred before, such as for medical malpractice and asbestos. In each case, he said, some people say "the sky is falling," but eventually the market comes back.
