October 21, 2002—A recent report from BOMA International reveals that the White House and Congressional leaders have come to an agreement to compromise on language for terrorism insurance legislation.
Because many House and Senate members have left Washington for state elections, BOMA expects the conference report to be voted on around mid-November.
Language addressing tort reform was the pivotal issue holding up an agreement between the Bush Administration and Congressional Democrats.
“Reports indicate that the final legislation will provide that 90 percent of damages be paid with federal funds after the backstop is triggered. The compromise bill would provide the backstop of funds for three years, with federal funds kicking in after $10 billion in damages is incurred the first year, $12.5 billion the second year, and $15 billion the third year. Individual company caps for damages would be set at 7 percent of premiums the first year, 10 percent the second year, and 15 percent the third year,” reports BOMA.
For more information, contact BOMA International.
