October 24, 2001

"Let me first commend the Chairman for holding this hearing. I cannot imagine a more timely hearing than this. The tragic events of September 11th have brought into sharp focus a number of urgent priorities for our nation. Among them, I believe, is the need for the federal government to ensure that American consumers and businesses can obtain insurance against the risk of terrorism.

"Nothing is more important to the health and recovery of our economy than terrorism insurance. Insurance is integral to nearly every segment of our economy. Available, affordable insurance against the risk of terrorism is a critical component to the continued health of virtually every business and household.

"The issue before this committee is not a review of the solvency of the insurance industry or whether or not claims arising from terrorist acts are being paid. The insurance industry is meeting its obligations from the tragic events of September 11th.

"However, we are rapidly approaching the end of the calendar year, at which point nearly 70% of all commercial and personal property casualty policies will be renewed. In order for cars, homes and businesses to remain covered for future acts of terrorism, the insurance industry and the federal government must share a commitment to address this urgent need.

"The insurance industry is being asked to insure against an immeasurable risk. That is something they cannot be expected to do alone. These terrorist acts are not directed at a single person or company, they are directed at the American way of life. The threat of terrorism to our nation demands and warrants a national response.

"This hearing is not about helping a particular industry. It is about helping our economy. Our nation's future economic health is a "policy" that all Americans should be willing to underwrite.

"Time is short. In order to address this issue in the limited time remaining before the end of this session, this effort must be a bipartisan one. I am committed to working with the Administration, and my colleagues in the Senate and in the House to develop a policy that addresses the urgent need for terrorism insurance in a manner consistent with our market-based economy and our obligation to protect taxpayers."

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