Lack Of Terror Insurance `Significant Threat' To Econ - Study (More binDaschle/RAT obstructionism)

Wall Street Journal ^ | 05/28/2002 | Dawn Kopecki

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WASHINGTON -- The lack of terrorism insurance for U.S. businesses has become a "significant threat to the economy," according to a new congressional report.

Protracted problems with obtaining adequate and affordable terrorism insurance has halted some large real estate projects, diverted funds from other investments and left many U.S. businesses and buildings under- and uninsured, according to a report conducted by the U.S. Congress Joint Economic Committee released Friday.

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Complicated issue, but a critical one. In December of last year the street was watching this in agony. The possibility of loans/mortgages being forced into default through the inability to get insurance on their collateral is terrifying.

The sticking point is the Republicans are opposed to the US government paying punitive damages in court for acts of terrorism, the democrats want the trial lawyers to be able to bleed us dry. If you are interested in reading more about the political battle read: SacBee - Terrorism insurance gets divisive.

[dawn53]

I've posted this before, but worth repeating. This will spread to home owners insurance.

Talked to our state insurance commissioner's office.

Look for wording in the small print of your policy when you renew stating your loss will not be covered due to an "act of war, declared or undeclared." Undeclared war equals terrorism. Not that the risk to the individual homeowner will be that great, unless you live near a nuclear power plant or a city that is attacked by a "dirty nuke." But insurance companies are opting out of covering any terrorism related losses.

Also, health insurance, at least ours with Humana, carries the same clause. Commissioners office said eventually all policies will include the clause because the insurance companies don't want to cover injury or property losses caused by terrorism.

[3AngelaD]

You want to hand our predatory trial bar the keys to the U.S. Treasury? Go ahead and pass the Democrat's version of the bill. Last year the Democratic chairman of the Banking Committee and Senator Dodd collaborated with Phil Gramm (R) on a bill that disallows punitive damages in such instances. It was on a smooth glide path to being passed. But Daschle pulled it because the trial lawyers (the Democratic Party's close friends) called him and complained that they were being shut out. The reason this isn't law right now is the Dem leadership thought it was more important to protect the interests of trial lawyers (and their right to a cut of every transaction) than of the country at large. That is the stalemate, and it's entirely Democrat-induced. Go figure.

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Yes! It is even more frightening when you add small business to the picture... People need to realize that the insurance industry's business is nothing more than a method of diffusing costs through the economy, and that when those costs are increased we all have to pay. It is compounded by the fact that peoples' retirements are also on the line through their exposure to the bond/stock markets. Daschle is leveraging the effectiveness of any future terrorist attack, by making US pay the trial lawyers a bonus for our suffering.

Too bad it is so complicated. What needs to happen is small business owners need to be educated about the risks of not putting something sane in place to keep this out of our corrupt tort system.

[GoreIsLove]

nuclear power plant or a city that is attacked by a "dirty nuke."

If you look at your policy, a lot of times you will have an endorsement that excludes coverage in the event of a nuclear mishap anyway. Also, a falling plane crashing on your house is also previously excluded from coverage on most policies.