Terrorist Insurance Bill Now Law

NEW YORK— President Bush has signed into law a bill that would provide terrorist insurance for new developments and existig properties, a moment the hospitality industry has been waiting for with baited breathe since the events of September 11th. Under the bill, the government wouldnt step in on any claims less than $5 million. Insurance companies would pay a deductible in 2003 equal to 7% of the premiums they received in the previous year. The deductible would rise to 10% in 2004 and 15% in 2005. The federal government would in turn cover 90% of everything above the deductible with insurance companies paying the other 10%. Federal payments would be capped at $90 billion the first year, $87.5 billion the second year and $85 billion in the final year of the program. SOURCE: CNN.com