Sunday, February 1, 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

 
Fire Department honors top firefighters

By Bill Hicks | From Page: A1, 1 Comment | Gallery

 
 
4th annual Health and Wellness Fair a big success

By Susan Hiland | From Page: A3 | Gallery

 
 
 
Banish dry skin this winter

By Sarah Porkka | From Page: C4, 1 Comment

Chocolate: A long journey to deliciousness

By Karen Metz | From Page: C4

 
County board to consider DA reorganization plan

By Kevin W. Green | From Page: A5

Eurozone offers lesson in debt

By Mark Sievers | From Page: B7

 
Rodriguez graduate completes basic training

By Nick DeCicco | From Page: B10

 
Fairfield police log: Jan. 30, 2015

By Susan Hiland | From Page: A12

Suisun City police log: Jan. 30, 2015

By Susan Hiland | From Page: A12

 
.

US / World

From ocean to ocean, through the Panama Canal

By The Associated Press | From Page: C1

 
NASA launches Earth-observing satellite

By The Associated Press | From Page: A1

 
‘Rolled Sleeves Bandit’ tied to 7 bank robberies in custody

By The Associated Press | From Page: A5

Bay Area agency accuses former official of embezzling $1.3M

By The Associated Press | From Page: A5

 
Los Angeles female-only mosque may be first in US

By The Associated Press | From Page: A5

California health care contract fight resolved

By The Associated Press | From Page: A5

 
Man arrested after body parts found in suitcase

By The Associated Press | From Page: A5

Scientist considered father of birth control pill dies

By The Associated Press | From Page: A5

 
Letter with suspicious powder received at Samaritan’s Purse

By The Associated Press | From Page: A6

Snails slither into spa scene in Thailand and around world

By The Associated Press | From Page: C6

 
 
Hatfields, McCoys make moonshine legally in southern W.Va.

By The Associated Press | From Page: A7

 
Airport authorities: Traveler beats homeless man with chair

By The Associated Press | From Page: A7

Kerry: ‘Enormous interest in new relationship with Cuba

By The Associated Press | From Page: A7

 
Drivers: Return to your dealers for a 2nd air bag recall fix

By The Associated Press | From Page: A7

 
Islamic State fighters admit defeat in Syrian town of Kobani

By The Associated Press | From Page: A9

From car lots to city budgets, cheap oil means change

By The Associated Press | From Page: B9

 
Africa agrees to send 7,500 troops to fight Boko Haram

By The Associated Press | From Page: A9

 
5 given preliminary charges over jihadi network in France

By The Associated Press | From Page: A9

Fire devastates major Russian library, threatens rare texts

By The Associated Press | From Page: A9

 
Swiss police: 4 dead after avalanche hits group of skiers

By The Associated Press | From Page: A9

Fire at Bangladesh plastics factory kills at least 13

By The Associated Press | From Page: A9

 
Civilians flee east Ukraine town as fighting intensifies

By The Associated Press | From Page: A10

British actress Geraldine McEwan dies at age 82

By The Associated Press | From Page: A10

 
Greek leader tamps down rhetoric, vows to pay off debts

By The Associated Press | From Page: A10

 
.

Opinion

 
Sound off for Feb. 1, 2015

By Daily Republic | From Page: A8

 
Editorial Cartoon: Feb. 1, 2015

By Daily Republic Syndicated Content | From Page: A8

 
.

Living

Community Calendar: Feb. 1, 2015

By Susan Hiland | From Page: A2

 
Today in History: Feb. 1, 2015

By The Associated Press | From Page: A2

Prayer, commonly misunderstood

By The Rev. Rick L. Stonestreet | From Page: C3, 7 Comments

 
Sundance doc pulls back curtain on Scientology

By The Associated Press | From Page: C3

 
Horoscopes: Feb. 1, 2015

By Holiday Mathis | From Page: C4

Volunteer or visit because February is National Salute to Veteran Patients

By Kathy Mitchell and Marcy Sugar | From Page: C4

 
.

Entertainment

PUBLISHERS WEEKLY BEST-SELLERS

By The Associated Press | From Page: C2

 
Review: ‘First Bad Man’ is Miranda July’s debut novel

By The Associated Press | From Page: C2

 
Lorrie Moore nominated for short story prize

By The Associated Press | From Page: C2

New book to feature unpublished Hemingway conversations

By The Associated Press | From Page: C2

 
TVGrid

By Daily Republic Syndicated Content | From Page: B11

.

Sports

Mustangs win the whole Encalada

By Marcus Lomtong | From Page: B1, 1 Comment | Gallery

 
Super Bowl the final act of the NFL’s worst season

By The Associated Press | From Page: B2

Lowest prices on last-minute Super Bowl tickets near $9,000

By The Associated Press | From Page: B2

 
Seau, Bettis, Brown, Haley, Shields voted into Hall of Fame

By The Associated Press | From Page: B3

 
Rodgers wins MVP, Watt unanimous top AP defensive player

By The Associated Press | From Page: B3

Lydia Ko takes No. 1 spot at 17, Na Yeon Choi wins opener

By The Associated Press | From Page: B3

 
Laird takes a 3-shot lead in Phoenix Open

By The Associated Press | From Page: B3

.

Business

On the money: Low gas prices, incentives change math for electric cars

By The Associated Press | From Page: B7 | Gallery

 
Small talk: NFL players find second careers as entrepreneurs

By The Associated Press | From Page: B7 | Gallery

Recalls this week: space heaters, orbital sanders

By The Associated Press | From Page: B8

 
Sumptuous seaside hotel sells for record-shattering $360M

By The Associated Press | From Page: B8

Review: Open e-book format comes with headaches

By The Associated Press | From Page: B9

 
.

Obituaries

Garry A. Britton

By Nancy Green | From Page: A4

 
Anthony Neal Hunley

By Nancy Green | From Page: A4

Frank Z. Perez

By Nancy Green | From Page: A4

 
Joe Lambert Robinson

By Nancy Green | From Page: A4, 1 Comment

Flora Mae Brooks

By Susan Hiland | From Page: A4

 
Otilia (Tela) Quinn

By Nancy Green | From Page: A4, 2 Comments

Lester Singer

By Nancy Green | From Page: A4

 
WillIiam “Bill” Hunter

By Nancy Green | From Page: A4

.

Comics