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Terrorism insurance plan
graphic October 9, 2001: 6:55 a.m. ET

Senators to propose U.S.-sponsored fund to replace private coverage.
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  • Do you have enough life insurance? - Oct. 8, 2001
  • Insurance costs from WTC attack too early - Sep. 12, 2001
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    NEW YORK (CNNmoney) - Several U.S. senators are planning to propose -- perhaps as early as Tuesday -- a government-sponsored insurance fund to cover terrorism related losses, according to an insurance lobby group.

    Julie Rochman, a spokeswoman for the American Insurance Association (AIA), told CNNfn that Sens. Christopher Dodd, D-Conn., and Charles Schumer, D-N.Y., are set to propose a privately financed, privately run insurance fund. This would make the government an insurer of last resort to help property and casualty insurers cover losses from terrorism.

    The government plan would cover anything above and beyond what the insurance companies could not pay for.

    Since the Sept. 11 attacks on New York and Washington, reinsurers have not been offering new terrorism coverage. As of Jan. 1, all existing terrorism coverage between reinsurers and property and casualty insurers expires; after that, the AIA said reinsurers will not offer terrorism coverage anymore.

    This is a similar system to reinsurance coverage of Israel, United Kingdom and Spain, according to Rochman. graphic

      RELATED STORIES

    Do you have enough life insurance? - Oct. 8, 2001

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    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

    Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

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    Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

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