WASHINGTON (July 24, 2007) - The National Association of Mutual Insurance Companies (NAMIC) issued the following statement after the House Financial Services' Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises reported an amended version of H.R. 2761, the Terrorism Risk Insurance Revision and Extension Act of 2007, to the full Financial Services Committee. The comments may be attributed to Carl Parks, NAMIC's senior vice president for government affairs.
We commend members of the subcommittee for moving this legislation in the right direction for the nation's economy. We are especially pleased that the members have lowered the event trigger level for the federal government’s involvement in terrorism, from $100 million to as low as $5 million. We hope the full House Financial Services Committee will follow suit when it considers the legislation next week, as this deep reduction will enable more small- and medium-sized insurance companies to participate in the program and increase the availability of terrorism insurance throughout the nation.
While this bill still contains some features that would be burdensome for small- and medium-sized insurance companies, we are encouraged by the progress made regarding non-conventional terrorist attacks. By delaying the implementation of the requirement for companies that offer terrorism insurance to make available coverage for nuclear, biological, chemical and radiological attacks and phasing in lower deductibles for that coverage, the subcommittee members have demonstrated a willingness to work to address the complexities of the NBCR issue. We share the bipartisan commitment to that effort, particularly Chairman Kanjorski’s comment about working to reduce the high level of insurers' copayments.
NBCR raises far more concerns than does coverage for conventional terrorist attacks, ones that NAMIC continues to believe would be best considered through the creation of a commission to study the implications of an attack using NBCR weapons and the specifics of how best the nation can address the massive harm that such an attack would cause.
We are encouraged by these significant steps toward a workable public/private partnership on terrorism insurance. We look forward to working with members of the committee to perfect this vital legislation.
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