[Congressional Record Volume 148, Number 71 (Tuesday, June 4, 2002)]
[Senate]
[Page S4932]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          TERRORISM INSURANCE

  Mr. REID. Mr. President, the Senate, as has been announced, is 
considering the emergency supplemental bill. Of course, anyone with 
amendments should come to the floor. We have so much work to be done 
this legislative year. We need to complete action on many important 
matters. One issue we must seek to work on quickly, expeditiously, is 
getting a bill out of this body to address the growing problem of a 
lack of insurance coverage due to the threat of terrorist attacks.
  Moody's Investors Service, which is a world famous organization, 
recently placed the ratings of 14 commercial mortgage-backed 
transactions on watch for possible downgrade due to concerns about 
terrorism insurance coverage.
  Moody's states that either the lack of or insufficiency of, or near-
term expiration of terrorism insurance coverage is the cause for these 
reviews for downgrade.
  In each case, terrorism insurance coverage has expired or will expire 
by the end of the third quarter of 2002.
  A Moody's spokesman stated:

       We believe that ignoring the risks would be inappropriate 
     given the events of Sept. 11 and continued government 
     warnings of the likelihood of future terrorist attacks. While 
     the probability of a major downgrade or default because of a 
     terrorist attack remains fairly remote, the overall risk in 
     these transactions has clearly increased.

  Moody's stated that it will take into account any Federal backstop 
for terrorism insurance put into effect by Congress.
  The majority--Senator Daschle--has been trying since December 2001 to 
reach agreement on bringing up legislation to deal with this growing 
problem. Unfortunately, every time we try, we have been blocked from 
bringing this up by the minority. Senators Dodd, Sarbanes, and Schumer 
have put together a solid proposal that addresses this problem.
  The desire to move this quickly necessitates a unanimous consent 
agreement on the number of amendments that would be in order to this 
legislation. We have repeatedly modified our proposal to accommodate 
amendments that individual Senators seek to offer to the Dodd proposal.
  Over the recess, I have heard that Senators Gramm of Texas and 
McConnell have put together a new proposal on terrorism insurance.
  While I believe we should have addressed this issue a long time ago--
they have every right to propose something new. I hope that whether it 
is controversial or not, it will help in moving this matter forward. 
Under our proposed consent request, they would be able to offer this 
proposal as an amendment. We have suggested that each side have four 
amendments, originally two; they said they wanted more, we doubled 
that.
  The issue is too important to be caught up in political agendas at 
this stage. There are some who seek to impose greater restrictions on 
insurance companies. There are others who seek to use this legislation 
as the way to have tort reform as part of the bill's consideration. I 
encourage everyone to come to the middle and not let perfection become 
the enemy of the good.
  It is important we do something. I encourage the White House to 
engage on this issue and assist us in moving this important 
legislation. As the famous football coach, George Allen, said: The 
future is now.
  The future is now. Moody's recent expected down-gradings are 
disturbing. All over America, whether it is New York, Chicago, Las 
Vegas, Dallas, or any of the big cities in Florida, there are 
significant building projects that, if not on hold, will be on hold 
pending resolution of this issue.
  This is not about tort reform. It is about maintaining the stability 
of our economic infrastructure. I hope we can, with this legislation, 
perhaps move forward to have something to deal with terrorism 
insurance. If not, I hope there is a way we can move forward soon, this 
week, to have this matter brought before the body with reasonable time 
agreements on the amendments, which would be appropriate; but if not, 
then let's just move forward on the legislation with no time agreements 
on any amendments.
  The Republican manager is here. I yield the floor and suggest the 
absence of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. BYRD. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.

                          ____________________