Senate Eyes Quota-Share Terrorism Coverage
Friday, December 14th, 2001 Catastrophe Legislation & RegulationInsurance industry representatives said today they are encouraged by draft language for a proposed foreign terrorism reinsurance bill that was circulating among U.S. Senate Democrats. But the measure, that would involve a quota-share system and was expected to see action on Tuesday, Dec. 18, still faces a number of hurdles, including sharp differences from the measure approved by the House of Representatives. "I'm encouraged we have a chance to get something done," said Dave Farmer, senior vice president for federal affairs with the Alliance of American Insurers in Downers Grove, Ill. The one-page draft states that the proposed bill would establish a temporary one-year program that the Treasury secretary can extend to a second year. The proposal would limit the measure to property and casualty insurance and exclude life and health insurance.
