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TERRORISM RISK PROTECTION ACT -- HON. JUDY BIGGERT (Extensions of Remarks -
April 09, 2002)
[Page: E474] GPO's PDF
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HON. JUDY BIGGERT
OF ILLINOIS
IN THE HOUSE OF REPRESENTATIVES
Tuesday, April 9, 2002
- Mrs. BIGGERT. Mr. Speaker, I rise today in support of H.R. 3210, the
House-passed terrorism insurance legislation. As President
Bush noted in a press conference yesterday, without a terrorism insurance bill, there will continue to
be a significant drag on our economy.
- Without coverage, the economic impact of another terrorist attack would be
very serious. The U.S. could face a string of bankruptcies, loan defaults and
layoffs that would intensify the blow of the attack.
- One segment of the economy that can least afford to live without terrorism coverage is our public
self-insured risk pools. These risk pools--more than 125 operating in
forty-one states--help local governments, school districts, housing
authorities, and other public entities to provide necessary insurance protection. These entities
would be hurt the most by layoffs due to lack of prevention prior to an
unforeseen terrorist attack.
- These risk pools provide coverage to those most often at greatest
risk--police officers, firefighters, and emergency medical personnel--as well
as teachers and students, municipal employees, and many others. We all know
that these public entities cannot absorb the costs of terrorism risk across their membership
base. I have heard from several risk pools in my state that are desperate for
help. In Illinois, the Assisted Housing Risk Management Association (AHRMA) no
longer has coverage for an act of terrorism . That self-insured pool
covers public housing authorities across my state.
- The Illinois School District Agency (ISDA), a self-insured risk pool
covering public school districts in Illinois, has been told that its July 1st
renewal will have a terrorism
exclusion. And the Department of Insurance in Illinois is now allowing
the exclusion of terrorism
coverage in new and renewal policies. So my state becomes one of 45 states
that are allowing such exclusions to be written into policies.
- The need for Congress to act has never been greater. Large, self-insured
pools and individual self-insurers such as the City of Chicago will pay as
much as four times their expiring premium to buy the additional coverage
necessary in the coming year. Make no mistake--public self-insured risk pools
are more vulnerable than other entities. They provide enormous savings to
taxpayers.