[Congressional Record Volume 151, Number 106 (Friday, July 29, 2005)]
[Senate]
[Page S9424]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        TERRORISM RISK INSURANCE

  Mr. DODD. Mr. President, the second issue I will mention briefly, in 
addition to the shield law issue, is terrorism risk insurance 
legislation. I speak as the author of the original legislation 3 years 
ago, which provided a backstop, not a bailout, for businesses in this 
country that rely on having terrorism risk insurance in major real 
estate developments and other major projects that are potentially 
vulnerable to attack.
  That bill expires on December 31. It is critically important for 
American businesses and consumers that we enact this backstop 
legislation. It is important for our country, important that we provide 
the kind of insurance coverage that would allow some protection against 
a major catastrophe. Without that, we run the risk of major projects 
not going forward.
  We had a briefing from major industries and others calling upon the 
Congress to extend the terrorism risk insurance law for the next 2 
years. We need to sit down and try to determine whether we can 
establish some permanent partnership between public and private sectors 
in which we can guarantee to some extent, should a catastrophic event 
occur, we would be in a position to provide a backstop, some relief, 
under those circumstances.
  None of us want to think about those events, but certainly the events 
in Spain in March of 2004 and Great Britain over the last several weeks 
and Sharm el Sheik over the last several days clearly indicate to all 
of us that we are living in a different world today.
  Terrorism risk insurance is not like insurance against other hazards. 
By the very nature of terrorism, it is very difficult, if not 
impossible, to develop accurate models for terrorist events. They are 
inherently and extremely unpredictable. Good, solid business people 
will say a federal backstop is absolutely critical to sustain the kind 
of economic growth that is important to our nation's future. Jobs are 
at stake, major developments are at stake, major public gatherings at 
sporting events and the like are at stake without the ability to 
provide this critical insurance, terrorism risk insurance.
  We have approximately 32 cosponsors of the bill I have introduced 
with Senator Bennett of Utah. Most of the members of the Banking 
Committee are supportive. The chairman of the Banking Committee, 
Senator Shelby, indicated he would like to work out a proposal in 
September to go forward. My hope is that will happen. We need the 
backing of the White House as well as the House leadership if that law 
is going to be enacted.
  Terrorism risk insurance legislation will require real emphasis over 
these coming weeks and months if we are going to succeed in enacting 
this bill before December 31 when the present law expires.

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