NFIB

Terrorism Insurance Negotiations Continue
10/08/2002

Though they missed President Bush's deadline of having a bill ready by last Friday, House and Senate conferees are still negotiating a terrorism insurance bill. Bush has said that passing the bill is crucial to helping the economy recover.

Both the House and Senate have passed bills to provide government backing for insurance companies in the event of terrorist attacks. However, negotiations have been stalled over the question of punitive damages. The House bill banned punitive damages, with the exception of awards against terrorists and their accomplices. The Senate bill has no such provision.

However, the two sides now seem to be closer to reaching a compromise, according to Congressional Quarterly. Senators Christopher Dodd (D-Conn.) and Charles Schumer (D-N.Y.) have proposed banning punitive damages unless "clear and convincing evidence" points to "willful or criminal misconduct, or a conscious, flagrant indifference" to the safety or rights of the victims.