Terrorism Insurance Loan Program Clears Committee
Friday, November 9th, 2001 CatastropheThe U.S. House Financial Services Committee approved a terrorism insurance assistance plan last last night based on federal loans that private insurers would have to repay. The legislation, H.R. 3210, which was approved by voice vote, has received somewhat tepid support from the insurance industry, which argues that it might not be enough to bring capacity to the market. But Committee Chairman Mike Oxley, R-Ohio, called the legislation a "pro-taxpayer, pro-consumer proposal." "We have passed a backstop, not a bailout," Rep. Oxley said. "By demanding that every dollar of American taxpayer assistance be repaid, we are providing a helping hand, not a handout." Rep. Richard Baker, R-La., the primary co-sponsor of H.R. 3210, said that the committee does not want to subsidize commercial insurance
