Terror Bill Is Dead, Says Senate Whip

By Steven Brostoff, Washington Editor

NU Online News Service, July 24, 4:14 p.m. EST, Washington?Senate Majority Whip Harry Reid, D-Nev., said that as far as he is concerned, terrorism insurance legislation is dead, but the insurance industry has not given up hope.

Sen. Reid spoke out on the floor of the Senate yesterday after efforts to move a unanimous consent request?which is needed to appoint the members of the House-Senate Conference Committee that will put together a consensus bill?failed.

Sen. Reid blasted both the Republican Party and the insurance industry for the inability to reach an agreement on the conferees.

He said that initially, Senate Majority Leader Tom Daschle decided that there would be three Democrats and two Republicans from the Senate on the Conference Committee.

However, Sen. Reid said, the Republicans objected, asking for a four-to-three ratio. Sen. Daschle, Sen. Reid said, agreed to that, but still the Republicans could not work out which of their members would be on the Conference Committee.

Moreover, he charged, the insurance industry apparently does not care enough to put pressure on the Republicans to go to conference.

"If the role were reversed, and we, the Democrats, were holding up the appointing of conferees on a terrorism insurance bill, our phones would be ringing," Sen. Reid said.

"We would have petitions, we would have demonstrations," he said. "But because it is the insurance industry, which is a little closer to the minority than we are, nothing happens."

"So as far as I am concerned, this bill is dead," Sen. Reid said. "I'm not putting the unanimous consent request in my desk anymore. I am putting it in the garbage can. And we will wait and see what happens."

But David Farmer, senior vice president of federal affairs for the Downers Grove, Ill.-based Alliance of American Insurers, said he remains optimistic and actually thinks the legislation is making progress.

Mr. Farmer said that it now appears that the major issue is the number of conferees, rather than the substance of the legislation.

He said he still believes that within the next two days, the conferees will be appointed. Moreover, Mr. Farmer said, with Congress wrapping up its work on corporate governance, the staffers responsible for terrorism insurance will be able to devote their attention to that issue.

Mr. Farmer said he remains optimistic that a bill can be enacted by mid-September.

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Terror Bill Is Dead, Says Senate Whip

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