With a change in Congress approaching, and under additional pressure by the White House, a lot of bills are making their way through the legislative process. Which of them actually complete the process remains to be seen, although some have a better chance than others.
Among the ones most of interest to advisors may be the Terrorism Risk Protection Act, HR 3210, and the Bankruptcy Reform Act, HR 333. The former bill states, with restrictions, that the government will cover up to 90% of insured losses above an industry triggering level in the case of acts of terrorism. Jack Dolan, a spokesman at the American Council of Life Insurers, says that while H.R. 3210 is largely a property/casualty bill, the bill’s conference report contains language calling for an expedited study by the Treasury Department of the group life insurance market. Should circumstances warrant, the conference report “will call for an extension of the federal backstop into the group life arena.”