This means that a the cost of a terrorism event has to exceed $500 million before the government would step in to fund 80% of the remaining amount. In some areas, like Manhattan, where an event could exceed billions of dollars, this puts private insurance on the hook for the first $500 million gross and then 20% of everything beyond that number. Anything under $500 million would not trigger government participation in any form. I don’t see where this is included in the Senate version. Can anyone comment on 1) my understanding or 2) whether the Senate bill includes the $500 million trigger increase?
Amended post…As I read the bill, the industry participation moves from 80% to 85% at a rate of 1% per calendar year and total gross loss remains at $100 million for the seven years according to the Senate bill.
No, the Senate Bill essentially leaves things as they are (some minor changes for industry) and extends for 7 years.
Pity about the House version. Mostly bad, but it would have cleared up Boston Marathon problems of the Treasury not having an obligation to say if something is or is not certified by a certain time. This problem causes angst for claism departments.
What does this mean?????:
“The House legislation also increases the program’s trigger from $100 million to $500 million.”
This means that a the cost of a terrorism event has to exceed $500 million before the government would step in to fund 80% of the remaining amount. In some areas, like Manhattan, where an event could exceed billions of dollars, this puts private insurance on the hook for the first $500 million gross and then 20% of everything beyond that number. Anything under $500 million would not trigger government participation in any form. I don’t see where this is included in the Senate version. Can anyone comment on 1) my understanding or 2) whether the Senate bill includes the $500 million trigger increase?
Amended post…As I read the bill, the industry participation moves from 80% to 85% at a rate of 1% per calendar year and total gross loss remains at $100 million for the seven years according to the Senate bill.
No, the Senate Bill essentially leaves things as they are (some minor changes for industry) and extends for 7 years.
Pity about the House version. Mostly bad, but it would have cleared up Boston Marathon problems of the Treasury not having an obligation to say if something is or is not certified by a certain time. This problem causes angst for claism departments.