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InsuranceInsurance Issues 

America’s insurance industry provides economic and personal security and financial protection for millions of families and small businesses. The life, health, property and casualty carriers and their reinsurers offer security and predictability in an uncertain world. In addition, the insurance industry provides capital for vigorous economic growth, enabling American business to create jobs and grow our economy. The insurance industry is a vital component of America’s financial security and economic prosperity.

Nebraska’s Senator Ben Nelson recognizes the importance of the industry to the American economy, and he has worked to keep it strong and able to provide protection for its policyholders. As someone who has spent much of his professional life in the industry, he is recognized as a leader on insurance issues in the Senate, and he has championed legislation to ensure the stability and viability of America’s insurance industry.

Insurance Issues

In the months following 9/11, Senator Nelson was instrumental in gaining passage of the Terrorism Risk Insurance Act (TRIA), which provided a “backstop” for catastrophic insurance losses resulting from acts of terrorism.

Senator Nelson has cosponsored legislation which would establish a trust fund to pay future claims of those who become ill as a result of exposure to asbestos. The fund would be financed by contributions from companies which are or may be liable for the exposure and their insurance carriers.

Senator Nelson has also supported class action reform legislation in the Senate. After many years of debate on this issue, Congress passed the Class Action Fairness Act in 2005, which had broad bipartisan support. The bill addresses the most serious abuses of class actions by allowing more large, interstate class actions to be heard in federal courts and by implementing a “Consumer Class Action Bill of Rights” that aims to protect consumers from some of the abuses of class actions, such as minimal damage awards or coupons settlements.

Senator Nelson is working on a substitute medical liability reform bill which will not preempt Nebraska’s Hospital-Medical Liability Act, originally enacted in 1976. This legislation has served Nebraskans well, and Senator Nelson intends to protect the decisions made by states which have already addressed this issue.

Senator Nelson believes that educating the public about the importance of life insurance is crucial to help people prepare for their retirement.  As the co-chair of the Senate Life Insurance Caucus and a sponsor of the National Life Insurance Awareness Month resolution, he works to educate his colleagues and their staff about life insurance’s role in the economic well being of retirees.  Life insurance provides financial security for families in the event of a premature death by helping surviving family members meet immediate and long-term financial needs. 

Updated: May 2009