Political Feuds Delay Terror Bill

Industry groups expressed optimism despite comments made last week by Senate Majority Whip Harry Reid, D-Nev., who said that as far as he is concerned, terrorism insurance legislation is dead.

Sen. Reid spoke out on the floor of the Senate after efforts to move a unanimous consent requestwhich is needed to appoint the members of the House-Senate Conference Committeefailed.

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 agreed to that, but still the Republicans could not work out which of their members would be on the Conference Committee, Sen. Reid said.

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. "Im 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 following Sen. Reids remarks that he 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.

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.

Gary Karr, a representative of the Washington-based American Insurance Association, said that Sen. Reids comments reflect a passion over the issue, which the insurance industry shares, and a frustration over the slow pace of progress, which the industry also shares.

The issue, Mr. Karr said, will take a lot of twists and turns, but the industry will continue to work hard for enactment of the legislation.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, July 29, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.