Federal insurance interventions remain in play for catastrophes, terrorism as 2012 election approaches
However, critics say it would put federal taxpayers on the hook for potentially millions of dollars in losses. Estimates of a net-neutral cost assume that the federal government would assess sufficient risk-based premiums on the CEA in exchange for the guarantee, Lawrence Powell, a professor of insurance and financial services at the University of Arkansas and an associate fellow at the R Street Institute, said in a new paper.
“Other federal risk transfer programs have made similar promises, but S. 637 would be unique if it actually achieved such an outcome,” Powell wrote.
