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You would think that renewing federal reinsurance protection for terrorism risks in the short term, and establishing a permanent backup facility of some sort for the long-run, would be a no-brainer, given the potential severity and lack of predictability of the exposure involved. But then again, there is so little brain power, guts or political will in Washington these days that it’s no surprise Uncle Sam is once again considering leaving the insurance industry in the lurch on this horrific risk.

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