The Bush administration and a bipartisan group in the Senate are reportedly on the verge of an agreement to create a federal backstop for insurance losses caused by terrorism.
Several key issues remain unresolved, but industry representatives believe that a formal bill could be presented within the next two days.
Along with the Bush administration, the agreement is being developed by Senate Banking Committee Chairman Paul Sarbanes, D-Md., Ranking Republican Phil Gramm, R-Texas, and Sen. Chris Dodd, D-Conn.
Under this agreement, the private insurance industry would retain the first $10 billion of losses from a terrorist event. Beyond this retention level, losses would be shared between the Treasury and the industry on a quota basis.
