ABSTRACT

Congressional Budget Office Cost Estimate: H.R. 3210: Terrorism Risk Protection Act   [open pdf - 32KB]

"H.R. 3210 would require the Secretary of the Treasury to provide up to $100 billion in financial assistance to commercial property and casualty insurers for losses from terrorist acts committed after enactment of the bill and prior to January 1, 2003. (The Secretary would have the authority to extend the program for two more years.) The Secretary would provide such assistance only after insured losses exceed $1 billion for the entire industry (or lesser amounts if individual insurance companies are particularly affected as specified by the bill). After either threshold is met, the Secretary would pay insurance companies 90 percent of subsequent covered losses. Under the bill, if insured losses from a terrorist act required the Secretary to provide financial assistance, the Secretary could recoup that cost through charges assessed on the insurance industry and purchasers of commercial property and casualty insurance. In addition, the bill would amend the Internal Revenue Code as it applies to insurance companies."

Publisher:
Date:
2001-11-16
Copyright:
Public Domain
Retrieved From:
Congressional Budget Office: http://cbo.gov
Format:
pdf
Media Type:
application/pdf
URL:
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