Terrorism Package On Capitol Sidetrack

At this writing, House and Senate leaders still had not appointed the members of the conference committee that will hammer out the substantial differences between the House and Senate versions of terrorism insurance legislation.

Industry representatives told National Underwriter that they were hoping the conferees would be appointed early this week, but it has not happened yet.

The problem, they said, is that the members of Congress and staffers who will most likely take the lead in resolving the issue are currently involved deeply in the corporate governance controversy.

It appears unlikely that the issue can be resolved before the House adjourns for its August recess, which is scheduled to begin on July 29, but representatives say the recess may be delayed if a deal on terrorism insurance appears imminent.

Meanwhile, President Bush urged Congress during a speech on Monday to get him a terrorism bill that shows "good judgment" in order to help the economic recovery.

"It is important that we pass this so that major construction projects which cannot get insurance can go forward," he said.

"And when those construction projects go forward all across the country, it means somebody is going to be able to find work," the president added.

But the president also touched on one of the most controversial issues surrounding terrorism insurance legislation, tort reform.

The legislation, President Bush said in his speech, must not open up the government and/or employers to unnecessary, frivolous junk lawsuits.

While the House version of terrorism insurance legislation contains strong tort reform measures, including a ban on punitive damages and a cap on fees paid to lawyers, the Senate bill contains only mild reforms.

The controversy over tort reform caused the Senate to delay action on terrorism insurance for several months.