Issues and Options for Government Intervention in the Market by Lloyd Dixon, John Arlington, Stephen J. Carroll, Darius N.

By Lloyd Dixon, John Arlington, Stephen J. Carroll, Darius N. Lakdawalla, Robert T. Reville

Examines the primary matters in teh debate over even if to increase, alter, or finish the Terrorism possibility assurance Act of 2002, which calls for insurers to make terrorism insurance on hand to advertisement policyholders.

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Observations About Government Structuring or Financing of Terrorism Insurance The options considered under this approach, in which government assumes at least some of the risk for losses, addresses to varying degrees the difficulty that the private sector has in providing coverage for losses from very large events at premiums that will result in substantial take-up rates. By capping the biggest private-sector exposures, these options also reduce the need to develop accurate models of the likelihood of terrorist attacks.

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