Statements on Introduced Bills and Joint Resolutions - S. 2765

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. DODD (for himself, Mr. BENNETT, Mr. SCHUMER, Mr. HAGEL, Mr. REED, Mr. BUNNING, Mr. CARPER, Mr. CRAPO, Mr. REID, Mrs. DOLE, Mr. NELSON of Nebraska, and Mr. CHAFEE):

S. 2765. A bill to extend the applicability of the Terrorism Risk Insurance Act of 2002; to the Committee on Banking, Housing, and Urban Affairs.

Mr. SCHUMER. I am very pleased to join Senators Dodd and Bennett and others in introducing a bill to extend the Terrorism Risk Insurance Act of 2002 for 2 years. I was actively engaged in the formulation of the act and this bill.

This is important, urgently needed legislation. There is a strong consensus among the affected parties that the act should be extended now. The act, without the extension, would expire at the end of 2005.

There is a mismatch. Unless TRIA is extended this year, it will be very difficult, if not impossible, to accurately price coverage on policies that extend into 2006. This will likely significantly reduce the availability of terrorism coverage. That lack of coverage could adversely affect the economy and the economic recovery.

TRIA is working. The General Accounting Office has found that: "TRIA has improved the availability of terrorism insurance, especially for some high-risk policyholder."

Fortunately, there have been no terrorism events on U.S. soil since 9/11. We all know that we are under a constant threat
and TRIA continues to be necessary.

I noted on the Senate floor when TRIA was passed in 2002 that Government is going to have to play a larger role. TRIA establishes a public-private partnership on terrorism insurance. The private sector could not solve this problem alone in 2002, plain and simple, and it still cannot do so. We can quibble about how much and where that Federal role should be, but it is definitely needed.

This nonpartisan bill is essentially a 2-year extension of TRIA. The changes that are made are minor, they include: extending the "make available" provision; including group life insurance policies under the act; gradually adjusting the aggregate industry loss level used to determine mandatory recoupment; providing for a 1 year "soft landing" for policies written before December 31, 2007; and requiring a study addressing long-term solutions to terrorism exposure. These are worthwhile modifications.

The bottom line is a simple one, and that is, our No. 1 goal should be keeping the economy on track in this brave new post-9/11 world. If that means altering the balance between Government and private involvement, so be it.

TRIA has worked in New York City. It has translated into thousands of jobs and desperately needed economic activity for the city, the region, and the entire country. If G-D forbid, there is another terrorism catastrophe in this country I have no doubts that the Government will provide the needed aid. TRIA addresses part of that effort in an orderly manner. Our clear hope is that we will never again experience catastrophes that make this bill necessary.

I am hopeful that this bill can be quickly considered by the Banking Committee, passed by the Senate and House, and enacted into law this year.