Latest Senate Move May Speed Backstop Bill

By Steven Brostoff, Washington Editor

NU Online News Service, June 18, 11:12 a.m. EST, Washington?The United States Senate today voted 65-31 to limit debate on legislation creating a federal backstop for losses caused by acts of terrorism, a move which could speed passage of the bill.

The vote allows expedited consideration of S. 2600, which would establish a quota share program under which the federal government would pay up to 90 percent of losses caused by acts of terrorism.

Under the limitation, called cloture, debate on S. 2600 will be held to no more than 30 hours and all amendments must be germane to the underlying bill.

Previously, in a largely party line vote, the Senate beat back an attempt by Republican leaders to attach language to S. 2600 barring punitive damages in tort lawsuits filed against American businesses that are targets of terrorist attacks.

The tort reform issue has held up consideration of terrorism insurance legislation in the Senate for much of the year.

Industry representatives expect another controversial amendment to be considered during Senate's consideration of the bill. The amendment would eliminate the individual company retention level contained in S. 2600.

Industry representatives say it is possible the Senate will now be able to complete consideration of S. 2600 this week. If the bill is approved, it will go to a House-Senate Conference Committee, which will work out differences between S. 2600 and a different version of the bill approved last November by the House.

The House bill calls for a federal loan program to insurers that suffer terrorism-related losses. In addition, the House bill contains sweeping tort reform measures, including a bar on punitive damages and limits on fees earned by plaintiff's lawyers.

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Latest Senate Move May Speed Backstop Bill

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