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Tom Coburn
Continue -- but gradually reduce -- federal risk in terrorism insurance
Continue -- but gradually reduce -- federal risk in terrorism insurance

The terrorists who turned the World Trade Center into rubble struck a devastating blow to the U.S. economy too, and few sectors felt it as acutely as the insurance industry. Afterward, insurers balked at providing any coverage for damage caused by further acts of terrorism, making it harder — if not impossible — for some developers to obtain loans. That led Congress to adopt the Terrorism Risk Insurance Act a little more than a year later, capping insurers' losses in the event of a major attack and promising that the U.S. government would take on some of the risk. In a story all too typical of the current Congress, the program is due to expire at the end of this year,...

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