[Congressional Record Volume 148, Number 37 (Tuesday, April 9, 2002)]
[Extensions of Remarks]
[Pages E474-E475]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     TERRORISM RISK PROTECTION ACT

                                 ______
                                 

                           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.
  I am hopeful that Congress will pass this bipartisan legislation soon 
and send it to the President's desk as he has requested.

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