D.C. at Risk If Terror Insurance Act Lapses; White House Backs Letting Industry Take Over

The Washington Times (Washington, DC), July 7, 2005 | Go to article overview

D.C. at Risk If Terror Insurance Act Lapses; White House Backs Letting Industry Take Over


Byline: Tom Ramstack, THE WASHINGTON TIMES

The insurance and real estate industries are warning that Washington's economy will suffer unless Congress renews the Terrorism Risk Insurance Act (TRIA), which is set to expire Dec. 31.

The Bush administration says allowing TRIA to expire would create incentives for the commercial insurance industry to assume the financial risks.

The Homeland Security Department lists Washington's government buildings as high-risk targets for terrorists. TRIA provides a government bailout for the insurance industry for any claims greater than $30 billion if a terrorist strike results in policy claims.

"Catastrophic terrorism is potentially so immense that it's beyond the financial capacity of the insurance industry," said Dennis Kelly, spokesman for the American Insurance Association.

After the September 11 attacks, which caused $32.5 billion in insured losses, insurance rates skyrocketed, forcing some real estate developers to delay projects and lay off workers because of the increased costs.

Most lenders have required terrorism insurance since the September 11 attacks.

Congress enacted the federal subsidy under TRIA in late 2002 to reduce insurance rates enough for projects to continue.

If TRIA is not renewed, the American Insurance Association has suggested that it be replaced with a "pool" fund financed jointly by government and industry to pay terrorism claims, similar to the one used in Britain.

The insurance industry estimates that claims from another major terrorist attack could cost $50 billion to $100 billion or more - with nuclear or biological attacks representing the greatest risk.

Commercial insurance companies that would cover the claims have access to only $114 billion, said Robert P. Hartwig, chief economist for the Insurance Information Institute, an industry trade group.

He called commercial insurance and reinsurance funds "clearly inadequate."

Under TRIA, the insurance industry must pay the first $30 billion in insured losses from an attack.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

D.C. at Risk If Terror Insurance Act Lapses; White House Backs Letting Industry Take Over
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.