Washington–Republican staff on the House Financial Services Committee are drafting legislation to extend the Terrorism Risk Insurance Act, with a system basing federal backstop amounts on the insurability of each risk.
The new "silo" concept is totally different than extension guidelines suggested by the Bush administration and draft legislation prepared by the committee some months ago.
Under the plan being developed, losses from terrorist attacks through nuclear, chemical, biological and radiation devices would be mostly covered by the government because it is an uninsurable risk. Other coverages, such as workers' compensation, would get some level of federal reinsurance, while some lines might receive no government coverage.
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