Tort Battle Threatens Terrorism Bill
Washington
Congressional negotiators are trying to hammer out a compromise over terrorism insurance legislation, but some industry lobbyists fear that the effort could still become stalemated over the thorny issue of tort reform.
Several lobbyists told National Underwriter that Senate Judiciary Committee Chairman Patrick Leahy, D-Vt., will lead the Senate negotiating team on the issue of tort liability. This means, these lobbyists said, that the House leadership will probably appoint Sen. Leahys House counterpart, House Judiciary Committee Chairman F. James Sensenbrenner, R-Wis., to lead the House negotiating team.
And therein, they say, lies the problems. Both Sen. Leahy and Rep. Sensenbrenner are viewed as ideologues who are less likely to reach a compromise on the tort reform than are other members of the House-Senate Conference Committee.
The differences between the House and Senate version of terrorism insurance legislation on the issue of tort liability are striking. The House bill, H.R. 3210, calls for significant limitations on tort liability regarding lawsuits filed against American businesses, including a prohibition on punitive damages and a cap on fees paid to plaintiffs attorneys.
By contrast, the Senate bill, S. 2600, calls only for procedural reforms.
Nonetheless, lobbyists say, some Republicans might insist on a specific limitation on punitive damage awards, which could create an impasse with Democrats.
Another issue is group life insurance. Some group life insurers are seeking to have group life included in the legislation as a coverage qualifying for federal assistance. Lobbyists say this is causing problems among some Senate staffers, who have accused the industry of "piling on"–that is, trying to expand a bill that should be as narrow as possible.
One lobbyist said it is unclear whether the effort to include group life would help the cause by bringing in another big constituency to support it, or hurt it by creating the impression that the industry wants too much.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, September 23, 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.
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