“The ripple effects of the September 11^th attacks touch every area of our economy.  This plan will encourage insurance providers to continue investing in new construction and community development projects,” said Rep. Capito.

“We need to act now so that West Virginians can continue to receive affordable individual insurance policies,” said Rep. Capito.  “No terrorist attacks will threaten West Virginia insurance.”

In November of last year, the House of Representatives approved H.R. 3210, the Terrorism Risk Protection Act, by a vote of 227-193.  In July the Senate agreed to a similar plan.  Now, a House and Senate conference must negotiate differences before it can be signed into law by President Bush.

“This is a national economic problem that demands a national solution.  Affordable, available terrorism insurance is necessary for the economy to function efficiently,” said Rep. Capito.

In the wake of the September 11^th tragedy, commercial insurers and policyholders have been deeply concerned about the withdrawal of the reinsurance industry from providing coverage for future terrorist attacks.  Reinsurers serve as the main risk-spreading mechanism for primary insurers, which offer coverage directly to consumers.  Without this ability to spread risk to other companies through reinsurance, primary insurers may be compelled to act similarly, leaving many businesses without much-needed insurance.

While insurers have said they will be able to absorb the estimated $25-$60 billion loss resulting from the events of September 11, there is concern that without adequate reinsurance any future incident of like size could threaten the stability of the commercial property/casualty insurance industry.