Insurers Retain Optimism On Backstop Bill

Insurers Retain Optimism On Backstop Bill

By Steven Brostoff, Washington Editor

NU Online News Service, Oct. 14, 9:59 a.m. EST, Washington?The insurance industry remained hopeful today that Congress would get together to approve a terrorism insurance bill despite a seeming impasse over tort reform and a tight schedule.

Gary Karr, a representative of the Washington-based American Insurance Association, noted that a similar scenario played out during the Senate's consideration of its version of terrorism insurance legislation, S. 2600.

At that time, Mr. Karr noted, there was a dispute over tort reform and many observers believed the legislation was dead. However, the Senate eventually did pass a bill, he said.

The dispute over tort reform involves the extent to which American businesses that are hit by a terrorist attack should be liable for punitive damages in lawsuits filed against them by victims.

One of the Republican leaders on terrorism insurance, House Financial Services Committee Chairman Mike Oxley, R-Ohio, accused Senate Democrats of being more interested in "trial lawyer protection than taxpayer protection."

Congress is not in session today because of the Columbus Day holiday. The Senate will convene tomorrow, and the House on Wednesday, in what will be the last week before breaking for the Nov. 5 election.

Congress may reconvene after the election for a "lame duck" session.