Dreier Votes to Approve Terrorism
Risk Protection Legislation
November 29, 2001
WASHINGTON - Praising the House for “protecting American
productivity from acts of terror,” Representative David
Dreier (R-San Dimas), Chairman of House Rules Committee,
voted today to approve legislation to ensure the continued
availability and affordability of terrorism risk insurance.
The Terrorism
Risk Protection Act, or H.R. 3210, enacts a series of
liability and compensation reforms. The House passed H.R.
3210 by a vote of 227-193.
“This legislation
gives American workers and employers a much-needed guarantee
that acts of terrorism will not threaten our way of life,”
said Dreier “By ensuring access to terrorism risk insurance,
H.R. 3210 encourages continued economic growth and
innovation. This bill replaces the current system with one
that will better serve businesses and workers affected by
terrorism in the months and years ahead.”
The act creates a temporary program to ensure the
continued availability of commercial property and casualty
insurance. It also offers reinsurance for terrorism-related
risks to encourage economic stabilization, with the
objective of establishing a viable market for private
terrorism risk insurance. Modeled in part on existing state
insurance programs, H.R. 3210 authorizes the Treasury
Department to pay 90 percent of claims when industry-wide
losses amount to over $1 billion and up to $20 billion. This
legislation provides short term liquidity and creates an
industry risk-spreading program to ensure that consumers and
businesses are able to purchase insurance.
Dreier praised the efforts of the Majority Leader Dick
Armey (R-TX), Judiciary Committee Chairman James
Sensenbrenner (R-WI), Financial Services Committee Chairman
Michael Oxley (R-OH), Ways and Means Committee Chairman Bill
Thomas (R-CA) and Budget Committee Chairman Jim Nussle
(R-IA), for their leadership in bringing this important
legislation to the floor. “We have made real progress in the
effort to secure America,” said Dreier. “This legislation is
an important safeguard for our economy.”