WASHINGTON -- Today, the House passed important legislation to ensure the continued availability of insurance and reinsurance for terrorism-related risks. Rep. Christopher Shays (R-CT) voted for the bill, which he cosponsored, when it passed the House. H.R. 3210 was drafted by the Financial Services Committee, of which Shays is a member.

"It is critical for the nation, and for Connecticut in particular, that terrorism insurance legislation is enacted before the first of January, when almost 70 percent of reinsurance policies are set to expire.

"This is not a government bailout. Taxpayers will recoup every penny of assistance insurance companies receive. The legislation will create a financial ‘backstop' for commercial property and casualty insurers in the event of losses from future terrorist acts.

"Time is quickly running out. The market for new insurance contracts and renewals is already undergoing serious and potentially severe disruptions. Reinsurers have made clear they will not provide terrorism insurance in the future without assurance they will not be held liable for unlimited losses. Without insurance, lenders won't lend and investors won't invest.

"Passage of this legislation brings us closer to restoring economic stability to our nation."

Contact: Katie Levinson - 202/225-5541