October 7, 2001
In U.S. Plan, Taxpayers Would Cover Terror Claims
By Stephen Labaton with Joseph B. Treaster
Washington, Oct. 6 — The Bush administration and Congress are preparing legislation to have taxpayers pay major insurance claims arising out of terrorist attacks.
The plan would make the insurers the second major industry, after the airlines, to receive emergency government aid after the Sept. 11 attacks on the Pentagon and World Trade Center.
Government officials and corporate executives say such a measure, to be announced as early as this week, is essential to avert an economic meltdown at the end of the year, when many insurance contracts covering businesses, office buildings and factories expire. Without such coverage, lenders will not finance real estate purchases, construction or investments by business in plants and equipment.
Some lawmakers question whether the plan would be an unjustified bailout, and whether the situation is as dire as corporations say.
[See http://www.nytimes.com/2001/10/07/business/07INSU.html]
Carl
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