Forecasts Differ On Backstop Bill's Fate

By Mark Ruquet

NU Online News Service, Sept. 27, 10:50 a.m. EST?Insurance industry heads displayed some cautious optimism toward passage of a terrorism insurance backstop bill, while Washington, D.C. insiders held decidedly pessimistic opinions about its future during two trade association sponsored discussion panels earlier this week.

The subject came up during two wide-ranging discussions about the state of the insurance industry and government affairs during the Alexandria, Va.?based Independent Insurance Agents and Brokers of America InfoXchange held in New Orleans Sept. 22 and Sept. 24.

Ramani Ayer, chairman and chief executive officer of The Hartford, based in Hartford, Conn., said there is limited availability in the marketplace for reinsurance covering a terrorist attack, and there is no coverage available for incidents involving a nuclear, biological or chemical incident.

The Senate and House have both passed differing terrorism insurance measures, which must be resolved by a conference committee.

Despite a provision for tort reform in the House measure, which is tying up efforts to reach a compromise with the Senate, Mr. Ayer said he was optimistic a bill would get passed, but he put the odds at 50-50.

However, two political commentators speaking later that week said they were dubious a bill would be passed.

"The [terror backstop] bill is on life-support," said Mark Shields, commentator, columnist, moderator of CNN's Capital Gang, and contributor to the PBS' News Hour with Jim Lehrer.

Because the Bush administration is focused on war with Iraq, all other issues have been pushed to the side, and without the administration's support, the bill, he indicated, would go nowhere.

Fred Barnes, executive editor of The Weekly Standard and host of FOX network's The Beltway Boys, blamed the lack of progress passing a backstop bill on trial lawyers who, he said, do not want to see passage of a measure with the tort reform provisions that exist in the House bill.

He said the bill would be passed if the trial lawyers "would step aside," suggesting they had "a wholly owned subsidiary called the Democratic Party."

Greg Murphy, CEO of Selective Insurance, based in Branchville, N.J., called this a "nervous time for the insurance industry." He said should a terror bill be passed it could prompt federal officials to seek more involvement in the industry.

"It's an instinct that can't be killed," Mr. Murphy remarked.

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Forecasts Differ On Backstop Bill's Fate

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