News Briefs

House Passes Terrorism Insurance Bill: Legislation that will extend the 2002 Terrorism Risk Insurance Act for an additional two years passed the House of Representatives floor by a vote of 371 to 49. The Senate already approved its version of the “Terrorism Risk Insurance Extension Act of 2005,” last month.

TRIA, passed a year after the attacks of Sept. 11, 2001, created a temporary federal program of shared compensation for losses from terrorist events. But the current program expires on Dec. 31, 2005.

The current Senate and House bills would continue the program but with some changes, including raising the trigger point for federal aid from $5 million to $50 million in the first year and $100 million in the second year.

Industry groups are now urging the Senate and House leaders to move a workable terrorism insurance bill to the President’s desk.

Katrina-Damaged Roads to Get Fed Funds: U.S. Transportation Secretary Norman Mineta has provided an additional $40 million to Louisiana and Mississippi as part of the federal government’s commitment to help Gulf Coast states rebuild roads and bridges damaged by Hurricane Katrina.

The Federal Highway Administration will immediately advance each state $20 million in emergency relief funds that may be used to repair or rebuild portions of I-10, U.S. 90 and other federally-supported highways and bridges, according to Mineta.

The announcement represents the second installment of federal funds for highway and bridge repairs since the hurricane struck. In mid-September, Mineta announced $5 million in emergency relief funds to each state as an initial down payment.

The Bush Administration has requested that Congress provide an additional $2.3 billion for repairing and rebuilding Katrina-damaged highways and bridges.

FHWA’s emergency relief program reimburses states for costs when federal-aid highways and roads on have suffered serious damage from natural disasters or catastrophic events.

Supreme Court Sides with Va. Landlord: The U.S. Supreme Court ruled this month against Virginia renters who claimed they were sickened by toxic mold in their apartment building, in a decision that clarifies where personal injury cases should be heard, reported the Associated Press.

The issue is significant in the long-running political debate over reining in large jury awards in consumer lawsuits filed in state courts.

Writing for a unanimous court, Justice Ruth Bader Ginsburg said an appeals court was wrong to insist that a Virginia subsidiary of the apartment manager, Texas-based Lincoln Property Co., should share responsibility in defending the lawsuit, Lincoln Property Co. et al v. Roche, 04-712.

Under federal rules, a defendant has a right to “remove” a case from state to federal court when the two parties are citizens of different states and the claimed damages exceed $75,000.

Christopher and Juanita Roche sued Lincoln Property in Virginia state court over exposure to toxic mold in their Fairfax County apartment. The Roches alleged the mold caused severe medical problems, including chronic headaches, memory loss and respiratory trouble.

The company sought transfer of the case to federal court, where it was dismissed. When the Roches asked the trial court to send the case back to state court the judge refused and they appealed.

2005 Deja Vu of 2004, Fitch Says: The 2005 U.S. property/casualty insurance industry mirrored 2004 in some respects with a strong first half operating performance that was then dampened considerably by third-quarter catastrophe losses although catastrophe losses in 2005 were much more severe, said Fitch Ratings in its annual review and outlook report. Fitch said the industry will not reproduce the underwriting profits that were reported in 2004.

A record number of named Atlantic tropical storms formed in 2005. The strongest of which, Hurricane Katrina, produced the largest insured loss on record for one event. Katrina’s destructive path in Louisiana and Mississippi was followed by Hurricanes Rita and Wilma, which each produced substantial insured losses that, combined, will make 2005 the most devastating year ever for insured catastrophe losses by a large measure.

Topics Catastrophe USA Virginia Hurricane