While the House passed a terrorism insurance bill last November, the issue has been tied up in the Senate due to a dispute over reform of lawsuit procedures.

In a speech before the annual legislative conference of the Independent Insurance Agents of America, Alexandria, Va., Sen. Dodd said that the issue of insurance is extremely complicated. It became more so, he said, when it also became a trial lawyer issue.

Sen. Dodd noted that he has supported tort reform measures in the past. However, he said, he does not believe that the terrorism insurance bill should become a vehicle for tort reform, especially if it means that terrorism insurance legislation cannot get done.

While there are legitimate issues regarding the tort system, Sen. Dodd said, trying to resolve them in the context of terrorism insurance is too much to ask.

He noted that many of his colleagues are wary of the issue in the aftermath of legislation that was seen as a "bailout" of the airline industry. They are concerned, Sen. Dodd said, about being seen as bailing out another major industry.

However, he said, it is important to communicate the message that this bill is not about the insurance industry but the insurance consumer.

Sen. Dodd said that estimates are that if another terrorist event occurs, only 20 percent of claims will be paid unless there is a federal role shoring up the market.

On the issue of optional federal chartering, Sen. Dodd said briefly that while he cannot promise it will never happen, it certainly will not happen either in this Congress of the next one.

Congress, he said, will proceed very slowly and cautiously on optional federal chartering.