The lack of private terrorism reinsurance is a drag on the economy and could have serious consequences if America is hit with another terrorist attack, federal officials told Congress yesterday.
The comments came from representatives of the Treasury Department and the U.S. General Accounting Office at a House Financial Services Committee hearing.
"The implication of these insurance market conditions and economic consequences makes it critical for Congress to enact a federal terrorism risk insurance backstop," Deputy Assistant Treasury Secretary Mark J. Warshawsky told the panel.
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