Monday, April 27, 2015
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Senate votes to extend terrorism insurance program

By
From page B11 | July 18, 2014 |

WASHINGTON — The Senate voted Thursday to extend a program that helped stabilize jittery insurance markets in the aftermath of the Sept. 11 terrorist attacks.

The program is designed to cushion the financial blow to insurance companies in the event of another massive attack. It is scheduled to expire at the end of the year.

The Senate voted 93-4 to extend the program through 2021. Under the program, the federal government helps pay damages for attacks that cost more than $100 million.

“In a post-9/11 world, developers and business owners embarking on multiyear, multimillion or billion-dollar construction projects need to be certain they can insure their investments,” said Sen. Chuck Schumer, D-N.Y., who sponsored the bill. “At a time when our economy is not growing as robustly as we’d like, failing to renew (the program) would be particularly foolish. Without (the program), it’s a virtual certainty that a large number of construction jobs and economic development would be lost.”

President Barack Obama supports the bill, the White House said Thursday.

“Terrorism insurance is necessary for a broad range of economic activities in areas across the country, and would be prohibitively expensive or unavailable in the absence of the program,” a White House statement said.

The House is considering a similar bill that treats conventional and nuclear attacks differently, providing less federal help for attacks using conventional weapons.

Rep. Randy Neugebauer, R-Texas, sponsored the House bill. He said it protects taxpayers “from further Washington-sponsored risk.”

The program was first enacted in 2002, when insurance companies were reluctant to provide coverage for terrorist attacks. The program has never been triggered because there haven’t been any attacks that caused more than $100 million in insurance losses, according to the nonpartisan Congressional Budget Office.

However, supporters say the program has made it possible for commercial property owners to get coverage, especially large venues that might be more vulnerable to a terrorist attack.

Under the program, companies that sell commercial property and casualty insurance must offer coverage for terrorist attacks. In exchange for this requirement, the federal government will help insurers cover losses under certain conditions.

The government would recoup the money in the form of insurance industry surcharges.

Insurers must pay the first $100 million in total losses stemming from an attack. Individual insurers must also pay a deductible equal to 20 percent of the premiums they collected in the previous year for certain types of insurance.

If there are additional damages above those amounts, the federal government would pay 85 percent of an insurance company’s remaining claims, and the insurance company would pay the remaining 15 percent.

The Senate bill gradually makes private insurance companies pay a larger share, increasing the copay to 20 percent.

The program only covers damages up to $100 billion. By comparison, insurance losses from the 9/11 attacks totaled about $40 billion, according to the Insurance Information Institute.

“The bill we have put together allows the private insurance industry to absorb and cover the losses of all but the largest acts of terror, ones in which the federal government would likely be forced to step in if the program were not there,” said Sen. Mike Crapo of Idaho, the top Republican on the Senate Banking Committee.

The House Financial Services Committee passed a bill in June that extends the program for five years and makes significant changes.

The House bill distinguishes between attacks using conventional weapons and attacks using nuclear, biological or chemical weapons.

Under the House bill, the program would still kick in at $100 million in the event of a nuclear, biological, chemical or radiological attack. But in attacks using conventional weapons, the threshold for triggering government support would gradually increase to $500 million.

Supporters say private insurance markets are more willing to cover losses from conventional attacks, so less government help is needed.

It is unclear when the full House will vote on the bill. Some House Republicans don’t think the House bill goes far enough in getting the government out of the insurance business.

Some Democrats, meanwhile, questioned why the program should distinguish between conventional and nuclear attacks. They noted that the 9-11 attacks weren’t nuclear, biological, chemical or radiological.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

 
Paint the Town Purple; and Roxie

By Tony Wade | From Page: A2

 
City Coach hosts first block party

By Susan Hiland | From Page: A3

 
Bid Corderos Park, city staff recommends

By Ryan McCarthy | From Page: A3

White minister fought for civil rights in the South

By Amy Maginnis-Honey | From Page: A3, 7 Comments | Gallery

 
Farmers markets herald return of summer

By Susan Hiland | From Page: A3

Denim and Diamonds fundraiser set May 16

By Amy Maginnis-Honey | From Page: A4

 
Crash claims life of Concord teen

By Amy Maginnis-Honey | From Page: A4, 1 Comment

Biz Buzz: Dutch Bros. plans ALS fundraiser

By Susan Hiland | From Page: B7

 
Biz Buzz: Company schedules pasta class

By Susan Hiland | From Page: B7

 
Biz Buzz: NorthBay offers extended hours for primary care

By Kevin W. Green | From Page: B7, 1 Comment | Gallery

 
Biz Buzz: Retail store helps those with autism

By Susan Hiland | From Page: B7

Biz Buzz: Committee schedules contractors breakfast

By Kevin W. Green | From Page: B7

 
Biz Buzz: Budweiser kicks off new parks campaign

By Susan Hiland | From Page: B7

.

US / World

Picture it: A 1,000-year exposure showing a changing Earth

By The Associated Press | From Page: A1

 
Corinthian Colleges to shut down all 28 remaining campuses

By The Associated Press | From Page: A5

No time to lose: Global response to Nepal quake gears up

By The Associated Press | From Page: A5

 
Japan’s prime minister goes to US to showcase close ties

By The Associated Press | From Page: A5

Israel says airstrike on Syrian border targeted militants

By The Associated Press | From Page: A5

 
Family, friends in Baltimore mourn death of arrested man

By The Associated Press | From Page: A5

‘Batman’ killer studied brain disorders before mass murder

By The Associated Press | From Page: A5

 
Image from the quake: Heavy damage in Nepal ancient city

By The Associated Press | From Page: A5

Fighting rages in Yemen’s 3rd-largest city, strikes continue

By The Associated Press | From Page: A5

 
Mountaineers, guides stream from Everest after avalanche

By The Associated Press | From Page: A5

 
Death toll in Nepal quake rises to more than 3,200

By The Associated Press | From Page: A5

Late spring complicates already perilous amphibian migration

By The Associated Press | From Page: A5

 
Quake agony revealed quietly on trip from Nepal airport

By The Associated Press | From Page: A5

 
.

Living

Community Calendar: April 27, 2015

By Susan Hiland | From Page: A2

 
Today in history: Monday, April 27, 2015

By The Associated Press | From Page: A2

Parenting: How to set boundaries on screen time

By The Washington Post | From Page: B5

 
Horoscope: April 28, 2015

By Holiday Mathis | From Page: B5

Horoscope: April 27, 2015

By Holiday Mathis | From Page: A7

 
My husband doesn’t want me to redecorate home he had with first wife

By Kathy Mitchell and Marcy Sugar | From Page: A7

.

Entertainment

TVGrid April 27

By Daily Republic Syndicated Content | From Page: B6

 
TVGrid April 28

By Daily Republic Syndicated Content | From Page: B7

.

Sports

Warriors confident after sweep of Pelicans

By The Associated Press | From Page: B1

 
Giants-Rockies game postponed by rain

By The Associated Press | From Page: B1

 
Justin Rose wins in New Orleans for 7th PGA Tour title

By The Associated Press | From Page: B2

Wall, Beal lead Wiz past Raptors 125-94 in Game 4 for sweep

By The Associated Press | From Page: B2

 
Paul, Clippers even series with 114-105 win over Spurs

By The Associated Press | From Page: B2

 
Ko wins Swinging Skirts for 2nd straight year

By The Associated Press | From Page: B2

Motorcycle rider from Livermore killed in Nevada race

By The Associated Press | From Page: B2

 
Billy Andrade and Joe Durant win Legends of Golf

By The Associated Press | From Page: B2

Cavs sweep Celts as James scores 27 in 101-93 victory

By The Associated Press | From Page: B2

 
It’s here: Fight week begins with Pacquiao caravan to Vegas

By The Associated Press | From Page: B2

American Pharoah completes final pre-Kentucky Derby workout

By The Associated Press | From Page: B2

 
Newgarden claims first IndyCar Series win not far from home

By The Associated Press | From Page: B2

.

Business

.

Obituaries

Elizabeth Cepeda

By Nancy Green | From Page: A4, 1 Comment

 
Kirk Noonan

By Nancy Green | From Page: A4, 3 Comments

Sandra King

By Nancy Green | From Page: A4

 
Janis Ruth (Sefzik) Skinner

By Nancy Green | From Page: A4

.

Comics

Get Fuzzy April 28

By Daily Republic Syndicated Content | From Page: B4

 
Dilbert April 28

By Daily Republic Syndicated Content | From Page: B4

B.C. April 28

By Daily Republic Syndicated Content | From Page: B4

 
Blondie April 28

By Daily Republic Syndicated Content | From Page: B4

Frank and Ernest April 28

By Daily Republic Syndicated Content | From Page: B4

 
Wizard of Id April 28

By Daily Republic Syndicated Content | From Page: B4

Peanuts April 28

By Daily Republic Syndicated Content | From Page: B4

 
Baldo April 28

By Daily Republic Syndicated Content | From Page: B4

Garfield April 28

By Daily Republic Syndicated Content | From Page: B4

 
Beetle Bailey April 28

By Daily Republic Syndicated Content | From Page: B4

For Better or Worse April 28

By Daily Republic Syndicated Content | From Page: B4

 
Sally Forth April 28

By Daily Republic Syndicated Content | From Page: B4

Baby Blues April 28

By Daily Republic Syndicated Content | From Page: B4

 
Zits April 28

By Daily Republic Syndicated Content | From Page: B4

Pickles April 28

By Daily Republic Syndicated Content | From Page: B4

 
Rose is Rose April 28

By Daily Republic Syndicated Content | From Page: B4

Bridge April 28

By Daily Republic Syndicated Content | From Page: B5

 
Cryptoquote April 28

By Daily Republic Syndicated Content | From Page: B5

Word Sleuth April 28

By Daily Republic Syndicated Content | From Page: B5

 
Crossword April 28

By Daily Republic Syndicated Content | From Page: B5

Sudoku April 28

By Daily Republic Syndicated Content | From Page: B5

 
Blondie April 27

By Daily Republic Syndicated Content | From Page: A6

Get Fuzzy April 27

By Daily Republic Syndicated Content | From Page: A6

 
Pickles April 27

By Daily Republic Syndicated Content | From Page: A6

Wizard of Id April 27

By Daily Republic Syndicated Content | From Page: A6

 
Baldo April 27

By Daily Republic Syndicated Content | From Page: A6

Rose is Rose April 27

By Daily Republic Syndicated Content | From Page: A6

 
For Better or Worse April 27

By Daily Republic Syndicated Content | From Page: A6

Zits April 27

By Daily Republic Syndicated Content | From Page: A6

 
Frank and Ernest April 27

By Daily Republic Syndicated Content | From Page: A6

Peanuts April 27

By Daily Republic Syndicated Content | From Page: A6

 
Dilbert April 27

By Daily Republic Syndicated Content | From Page: A6

Baby Blues April 27

By Daily Republic Syndicated Content | From Page: A6

 
Sally Forth April 27

By Daily Republic Syndicated Content | From Page: A6

B.C. April 27

By Daily Republic Syndicated Content | From Page: A6

 
Garfield April 27

By Daily Republic Syndicated Content | From Page: A6

Beetle Bailey April 27

By Daily Republic Syndicated Content | From Page: A6

 
Cryptoquote April 27

By Daily Republic Syndicated Content | From Page: A7

Word Sleuth April 27

By Daily Republic Syndicated Content | From Page: A7

 
Sudoku April 27

By Daily Republic Syndicated Content | From Page: A7

Bridge April 27

By Daily Republic Syndicated Content | From Page: A7

 
Crossword April 27

By Daily Republic Syndicated Content | From Page: A7