The insurance industry faces an estimated $40 billion to $70 billion in claims tied to terrorist attacks on the World Trade Center and the Pentagon on September 11, 2001, and it remains exposed to significant risk from possible future terrorist acts. This threatened lack of terrorism coverage in commercial and personal insurance policies could have a significant impact on a broad range of businesses and personal consumers. The Bush Administration, insurance trade associations, and Members of Congress have made various proposals to establish a federal "backstop" of the private insurance (reinsurance) mechanism for the peril of terrorism. Action now turns to the Senate, where several Senators have introduced competing bills.
CRS Report for Congress, RL31209