Punitive Damage Provision Could Derail Terrorism Bill

Wednesday, November 21st, 2001 Catastrophe

Creating a federal role in the market for terrorism insurance remains a top priority for Congress this year, but the Senate remains at loggerheads over the issue of punitive damages, an industry representative says. "I think [terrorism insurance] is on the ‘must do' list," said Carl Parks, senior vice president of federal affairs for the Des Plaines, Ill.-based National Association of Independent Insurers. "There is bipartisan support for getting something done, not for the insurance industry but for business and the economy in general." Mr. Parks noted that in the House, the Financial Services Committee has already approved H.R. 3210, which would provide government loans to insurers to help pay for losses arising from a terrorist event.

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http://www.nationalunderwriter.com/archives/Pc_archive/2001/P11-26/P200148punitive.asp

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