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.”