Modal close

Hi there,

You turn to Democracy Now! for ad-free daily news you can trust. Maybe you come for our daily headlines, or our in-depth stories that expose corporate and government abuses of power. You need news that isn't being paid for by campaigns or corporations. We produce our daily news hour at a fraction of the budget of a commercial news operation—all without ads, government funding or corporate sponsorship. How? This model of news depends on your support. Right now, every new monthly sustaining donation to Democracy Now! will be tripled by a generous supporter. That means if you can give just $4 a month, Democracy Now! gets $12 today.  Pretty amazing right? If you visit us daily or weekly or even just once a month, start your monthly contribution today. Thanks so much. -Amy Goodman

Non-commercial news needs your support.

We rely on contributions from you, our viewers and listeners to do our work. If you visit us daily or weekly or even just once a month, now is a great time to make your monthly contribution.

Please do your part today.

Donate

Insuring Terrorism and Nuclear Risks After September 11th: Is It An Industry Bailout?

StoryDecember 04, 2001
Watch iconWatch Full Show
Listen
Media Options
Listen

Related

On Friday, the House passed legislation that would bail out the insurance industry in claims arising from futureterrorism. The bill, which received the tentative backing of the White House, would allow the government to cobbletogether about $100 billion to cover future losses for insurance companies.

Ultimately, if the government covers the industry’s costs, taxpayers would bear the brunt of the burden. The Houseplan would require insurers to shoulder the first $1 billion in losses arising from a terrorist strike, while thegovernment would lend money to pay 90 percent of any additional claims. The loans would be repaid by the industry andits policyholders. Reinsurance companies — which insure insurance companies — have indicated that they will nolonger cover terrorism after Dec. 31, when the majority of their policies expire.

To try to counter this deadline, there are four terrorism insurance bills circulating. Senate Majority Leader TomDaschle is said to favor a compromise among them. He is working to come up with a single proposal. But negotiationshave continued for more than two months with little progress. And Daschle reiterated his position yesterday that workon the insurance bill would come after a resolution on the economic stimulus package.

Meanwhile, the U.S. Chamber of Commerce is blanketing Washington’s cable airwaves with ads urging the Senate to passthe terrorism insurance bill approved by the House. They have bought tens of thousands of dollars worth of TV time,and may expand the campaign to markets across the country, depending on what the Senate does.

Consumer interest groups are concerned that industry-drafted plans on terrorism insurance will force taxpayers totake the brunt of the impact. And the insurance industry bailouts extend from terrorist attacks to nuclear reactors.The House voted in virtual secret last week to continue to shield new reactor builders from normal insuranceliability, even if they lack safety domes to contain radioactive releases. Anti-nuclear advocate Harvey Wassermanwrote a piece last week that began, “if terrorists turn a US nuclear plant into a radioactive holocaust, the Housewants you to pay for it.”

Guests:

  • Harvey Wasserman, anti-nuclear activist and author of ??The Last Energy War.
  • Bob Hunter, director of insurance at the Consumer Federation of America.

Related links:

??
??
??

??

Related Story

Video squareStoryMay 11, 2018If Gina Haspel Is Confirmed at CIA, the U.S. Would Be Giving Other Nations Green Light to Torture
The original content of this program is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License. Please attribute legal copies of this work to democracynow.org. Some of the work(s) that this program incorporates, however, may be separately licensed. For further information or additional permissions, contact us.

Non-commercial news needs your support

We rely on contributions from our viewers and listeners to do our work.
Please do your part today.
Make a donation
Up arrowTop