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Article: Why Congress Should Foot the Bill For Future Major Terrorist Attacks.(Column)
- Article from:
- American Banker
- Article date:
- November 30, 2001
- Author:
CopyrightCOPYRIGHT 2001 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The U.S. economy faces a serious economic crunch if Congress does not quickly resolve the insurance crisis sparked by the Sept. 11 terrorist attacks.
However, Congress can resolve this problem only by committing the federal government to pay most of the losses arising from future large-scale terrorist attacks. The government should pay, because it will have failed again to prevent an attack.
Insurers will pay all claims arising from the Sept. 11 attacks. However, they understandably have become reluctant to insure against losses arising from future terrorist attacks without a cap on the total amount of losses the insurance industry must absorb. This cap ...