RIMS Lobbying Hard On Terror Bill

NU Online News Service, July 30, 1:45 p.m. EST?The Risk and Insurance Management Society Inc. said the U.S. Senate and House of Representatives had taken "a critical step" in appointing conference committee members to iron out differences over terrorism insurance legislation.

RIMs said it had lobbied legislators to keep several key points it supports in the final conference measure.

Senate bill S. 2600?which establishes a quota share program?was passed last month. The House version, H.R. 3210?which establishes a loan program?was approved in November of last year.

"Appointing the conference committee on the terrorism insurance bill is a critical step in getting the government backstop that commercial policyholders need," said RIMS President Christopher Mandel. "It is imperative that legislation is in place before this country faces another devastating terrorist attack."

At the time of the committee appointments, leaders of the New York-based RIMS' External Affairs Team were meeting with key legislative staff on Capitol Hill. During the meetings, RIMS urged that the following proposals remain or be included in the final legislation:

? Shared responsibility of costs between the federal government and the insurance industry.

? Individual company retention levels to trigger activation of the program.

? A federal program consistent with the policy-year concept used in an insurance contract.

? A broad, inclusive definition of terrorism, and some discretion to the Secretary of the Treasury to determine specific terrorism incidents covered by the legislation.

? Inclusion of workers' compensation, business interruption and fire-following as incorporated insurance coverages under the legislation.

Special Reports /

RIMS Lobbying Hard On Terror Bill

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