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American Morning

Terror Insurance

Aired November 26, 2002 - 09:02   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


PAULA ZAHN, CNN ANCHOR: Just minutes from now, as Bill just mentioned, President Bush is expected to sign another piece of landmark legislation, actually about 15, 20 minutes from now. The Terrorism Insurance Act is intended to protect insurers from catastrophic losses caused by terror. Yesterday the president signed the Homeland Security Act.
And here with more on both of these anti-terror steps is Frank Buckley. He joins us live from the White House.

Good morning -- Frank.

FRANK BUCKLEY, CNN CORRESPONDENT: Good morning, Paula.

The president says that this bill will put construction workers back on the job. Commercial construction is at a six-year low right now. One of the reasons, according to the White House, construction projects stalled after the 9/11 attacks because insurance premiums either went up or insurance wasn't available at all.

(BEGIN VIDEO CLIP)

ARI FLEISCHER, WHITE HOUSE SPOKESMAN: Insurers reached the point at which they stopped providing insurance. Many entities throughout America were unable to get the same level of insurance, they had to pay substantially more for the insurance because the risks of insurance companies providing insurance in the new age of terrorism became so exorbitant it had a matter of impact on the national economy. And so this was a judgement that was made and Congress agreed with it to pass this legislation which would help to make certain that people got the insurance they needed as a -- with a federal backup.

(END VIDEO CLIP)

BUCKLEY: And the bill is authorized for three years. It does not cover 9/11 losses or claims of less than $5 million. Federal payments would be capped at $90 billion in the first year, $87.5 in the second and $85 billion for the final year. And again, this was the second major piece of legislation that the president insisted upon from the 107th Congress, and he got it right before the Congress adjourned -- Paula.

ZAHN: Thanks so much, Frank. Appreciate it.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Aired November 26, 2002 - 09:02   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: Just minutes from now, as Bill just mentioned, President Bush is expected to sign another piece of landmark legislation, actually about 15, 20 minutes from now. The Terrorism Insurance Act is intended to protect insurers from catastrophic losses caused by terror. Yesterday the president signed the Homeland Security Act.
And here with more on both of these anti-terror steps is Frank Buckley. He joins us live from the White House.

Good morning -- Frank.

FRANK BUCKLEY, CNN CORRESPONDENT: Good morning, Paula.

The president says that this bill will put construction workers back on the job. Commercial construction is at a six-year low right now. One of the reasons, according to the White House, construction projects stalled after the 9/11 attacks because insurance premiums either went up or insurance wasn't available at all.

(BEGIN VIDEO CLIP)

ARI FLEISCHER, WHITE HOUSE SPOKESMAN: Insurers reached the point at which they stopped providing insurance. Many entities throughout America were unable to get the same level of insurance, they had to pay substantially more for the insurance because the risks of insurance companies providing insurance in the new age of terrorism became so exorbitant it had a matter of impact on the national economy. And so this was a judgement that was made and Congress agreed with it to pass this legislation which would help to make certain that people got the insurance they needed as a -- with a federal backup.

(END VIDEO CLIP)

BUCKLEY: And the bill is authorized for three years. It does not cover 9/11 losses or claims of less than $5 million. Federal payments would be capped at $90 billion in the first year, $87.5 in the second and $85 billion for the final year. And again, this was the second major piece of legislation that the president insisted upon from the 107th Congress, and he got it right before the Congress adjourned -- Paula.

ZAHN: Thanks so much, Frank. Appreciate it.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com