The U.S. House of Representatives yesterday approved a bill 227-193 to provide billions of dollars to insurance companies to help pay claims from future terrorist attacks (see GSN, Nov. 8).  Under the bill, insurance companies would pay the first $1 billion in losses from a terrorist attack, and the federal government would pay 90 percent of further claims.  The bill would require insurers and policyholders to repay the money.

Congress would have to reconcile the House bill with competing Senate legislation before implementing the measures, and it remains unclear whether legislators could reach an agreement by the end of the year when most insurance policies expire, according to the Washington Post.

Senator John McCain (R-Ariz.) introduced a bill in the Senate yesterday that would provide government payment for 80 percent of claims over $10 million for an individual company or 5 percent of gross premiums written.  Policyholders would have to repay the first $50 billion losses under the McCain plan.  Senator Christopher Dodd (D-Conn.), who has been preparing a different bill, criticized the House legislation.

House Democrats failed to pass a proposal requiring the insurance industry to cover $5 billion in claims for the first year of the legislation and $10 billion in the second year.  The Democrats also opposed restrictions on the ability to sue companies for failing to take proper precautions against terrorism that were included in the bill (Eilperin/Spinner, Washington Post, Nov. 30).

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