[Congressional Record Volume 153, Number 191 (Thursday, December 13, 2007)]
[Extensions of Remarks]
[Pages E2573-E2574]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      TERRORISM RISK INSURANCE PROGRAM REAUTHORIZATION ACT OF 2007

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON-LEE

                                of texas

                    in the house of representatives

                      Wednesday, December 12, 2007

  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in strong support of 
H.R. 4299, which revises and extends the Terrorism Risk Insurance Act 
(TRIA) for 15 years. I commend Chairman Frank and Congressman Capuano 
for their fine work in shepherding this critical legislation to the 
House floor. This act reminds us that the true measure of our 
homeland's preparedness against terrorist attack is our ability to 
prepare for such an attack comprehensively and that includes the 
insurance industry which is an essential part of our economic 
landscape.
  Mr. Speaker, the horrendous events of September 11, 2001, tested our 
nation's ability to defend itself in many ways. Along with the human 
and emotional toll these events took on all Americans, we noticed that 
not only our government but also our private industries were not 
sufficiently prepared to deal with the implications of a terrorist 
attack. Terrorist activity since September 1, 2001, has come to prove 
that our enemies are becoming more agile and technologically 
sophisticated. There is no doubt in my mind that terrorists are 
targeting not only our fellow citizens but also our critical 
infrastructure including our financial services sector, since they are 
determined to undermine the United States in the most fundamental of 
ways.
  History has shown that Al Qaeda and other extremist organizations 
will explicitly direct their efforts against American citizens and 
property in an effort to inflict economic harm. According to a RAND 
policy brief, ``there is reason to believe that al Qaeda is interested 
in continuing its efforts to disrupt the fiscal base of the United 
States by attacking its borders.'' If al Qaeda and others are 
determined to strike our financial targets, public policymakers need to 
examine possible financial mechanisms to mitigate these effects.
  Mr. Speaker, H.R. 4299 is a critical and timely legislative response 
to the fact that after the terrorist attacks of September 11, many 
insurance companies excluded terrorism events from their policies. 
After the 9/11 terrorist attacks, many insurance companies excluded 
terrorism events from their insurance policies. As a result, Congress 
passed the Terrorism Risk Insurance Act as a three year temporary 
program in 2002. The act created a federal backstop to protect against 
terrorism related losses. In 2005, the measure was extended until 2007. 
TRIA is now set to expire at the end of this year, unless we today 
extend the law.
  Since its enactment, TRIA has ensured the availability of affordable 
terrorism risk insurance in the marketplace and thereby fostered 
continued urban development and real estate development in the United 
States. While the TRIA program has successfully kept terrorism 
insurance affordable, the President's Working Group on Financial 
Markets' most recent report concluded that a private market for 
terrorism reinsurance is virtually nonexistent--especially with regard 
to nuclear biological chemical and radiological (NBCR) acts of 
terrorism.

  Mr. Speaker, I support H.R. 4299 because it provides federal backstop 
for private terrorism insurance. One of the strongest features of the 
bill is that it comes at no cost to the American taxpayer unless there 
is a terrorist attack.
  The security of our country can not be ensured unless we make certain 
that the U.S government works hand-in-hand with the private sector to 
confront terrorist threats. H.R. 4299 exemplifies this idea.
  The bill before us is based on the idea that it is in the best 
interest of our country that the federal government coordinate with 
insurers to provide financial compensation to insured parties for 
losses from acts of terrorism. It will contribute to the stabilization 
of the United States economy at a time of national crisis.
  Mr. Speaker, I also support this bill because I believe that 
extending TRIA for 15 years will contribute to the long-term stability 
of two critical American industries, the construction and real estate 
industries. The long-term stability it provides will allow both 
industries to engage in large-scale building projects in areas 
considered high-risk for terrorism.
  Mr. Speaker, terrorist attacks target our country as a whole and not 
individual cities or

[[Page E2574]]

states. I support the bill because it also exemplifies the critical 
idea that the risk from such attacks should be dealt at national level. 
H.R. 4299 should be seen as part of our broader efforts to confront and 
defeat the terrorist enemy.
  No legislative initiative, especially in such a critical field 
related to the security of our country, can become really effective 
unless it enjoys the support of the private industry it affects.
  Mr. Speaker, I understand that H.R. 4299 is broadly supported by 
insurance companies, insurance agents and brokers, policyholders, 
commercial developers, and construction companies.
  Another important provision in the bill is that it extends TRIA to 
cover both foreign and domestic terrorism. Currently it covers only 
foreign terrorism. It also adds group life insurance to the types of 
insurance for which terrorism insurance coverage must be made available 
by insurers. It also sets the ``trigger'' level--the size of an attack 
at which the federal government would provide aid to insurers--at $50 
million. Current law (P.L. 109-44), enacted in 2005, sets the level at 
$50 million in 2006 and $100 million in 2007. Yet another strong 
feature of the bill is it requires continuation of studies of the 
development of a private market for terrorism and risk insurance.
  Mr. Speaker, I support the passage of H.R. 4299 and call on my 
colleagues to do like wise because I strongly believe that it will 
strengthen our nation's efforts to confront the terrorist threat in a 
more comprehensive way and will provide long-term stability for 
critical American industries.

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