April 10, 2002—Senator Charles Schumer of New York has drafted a terrorism insurance proposal that would provide direct government insurance—up to an aggregate cap of $100 billion—against terrorist acts to any person who certifies, with confirming certification from the appropriate insurance commissioner, that the person has been unable to obtain “reasonably priced” terrorism insurance.
The proposal would authorize the US Treasury Secretary to establish a three-year terrorism risk insurance program to protect taxpayers and reduce economic instability caused by the current lack of affordable commercial property and casualty insurance coverage for terrorism risk in the wake of last years World Trade Center and Pentagon attacks.
Based on a report from BOMA International
