U.S. Carriers Propose Terror Insurance Firm

AMR Corp.’s American Airlines, UAL Corp.’s United Airlines and other U.S. carriers proposed creating a company to provide terrorism insurance at half the cost of current coverage.

Marsh Inc., the insurance brokerage unit of Marsh & McLennan Cos., applied for a license to operate an insurer called Equitime, the Air Transport Assn. said.

The airlines would provide about $300 million in start-up funding and first-year premiums to the company for coverage that would cost about 50 cents to 70 cents a passenger.