[Congressional Record (Bound Edition), Volume 147 (2001), Part 16]
[Extensions of Remarks]
[Page 22956]
[From the U.S. Government Publishing Office, www.gpo.gov]



   ENSURE SMALL BUSINESSES' FAIR AND EQUAL ACCESS TO COMPETITIVE AND 
               AFFORDABLE INSURANCE PRODUCTS AND SERVICES

                                 ______
                                 

                         HON. LUIS V. GUTIERREZ

                              of illinois

                    in the house of representatives

                       Monday, November 19, 2001

  Mr. GUTIERREZ. Mr. Speaker, today I am introducing the ``Small 
Business Insurance Data Disclosure Act of 2001,'' a bill to provide for 
public access to information regarding the availability of insurance 
for small businesses.
  There is no doubt that small businesses have played a significant 
role in the unprecedented economic prosperity we have enjoyed during 
the last decade.
  America's 25.5 million small businesses represent more than 99 
percent of our nation's employers. They employ 51 percent of the 
private sector workforce and create more than 80 percent of all the net 
new jobs in the United States.
  In 2000, there were 612,400 new employer firms, an increase of 4.3 
percent from 1999. Small business bankruptcies decreased by 14.8 
percent between 1999 and 2000, to the lowest level in more than 20 
years. And the business failure index also decreased by 1.7 percent 
since 1999.
  Small businesses, however, are also the most vulnerable market sector 
in times of economic uncertainty or downturn and assuredly experience 
difficulties with making loan payments on existing debts, paying 
employees, paying vendors, paying rent, insurance premiums or other 
operating expenses and securing financing for their businesses.
  The commercial insurers are preparing small business policyholders 
for rate increases. Please consider the following:
  According to an Insurance Insider report, insurance premiums for 
restaurants are expected to rise by an average of at least 15 percent. 
More than 70 percent of our nation's restaurants are small businesses 
and are currently experiencing declining revenues. Now, their already 
weakened balance sheets must incorporate anticipated premium increases.
  Lack of affordable and adequate insurance will severely limit the 
ability of entrepreneurs to obtain credit for starting, growing or 
expanding a small business. Hence, there will be fewer new or increased 
revenue streams to flow into our already slowed economy.
  To address these problems, this Act requires insurance companies to 
compile and make public sufficient data for analyses of the 
availability and affordability of small business insurance. That data 
would include the following information for small business insurance: 
race/ethnicity, gender, census tract, annual revenue of the small 
business, number of small business policies and amount of premiums, 
number of cancellations and non-renewals and the aggregate losses by 
the insurance companies.
  This Act is strongly supported by numerous grassroots organizations 
among which are the National Community Reinvestment Coalition; National 
Congress for Community Economic Development; Woodstock Institute (IL); 
Women's Business Development Center of Chicago (IL); Rural 
Opportunities (NY); California Reinvestment Coalition; Fairness in 
Rural Lending (WI); Women's Business Development Center of Philadelphia 
(PA); Nevada Fair Housing Center; Delaware Community Reinvestment 
Action Council; Chicago Association of Neighborhood Development 
Organizations (IL); Center for Women and Enterprise (MA); Coalition of 
Neighborhoods (OH); Community Equity Investments, Inc. (FL); Dallas/Ft. 
Worth/Arlington Minority Business Development Center (TX) and the 
Hispanic Economic Development Corporation.
  Mr. Speaker, I urge my colleagues to support this much-needed 
legislation to ensure that small businesses are afforded equal access 
to affordable insurance products.




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