SECOND REGULAR SESSION

House Concurrent Resolution No. 37

91ST GENERAL ASSEMBLY



5079L.01I

Whereas, the September 11, 2001, terrorist attacks have had a substantial impact on the American economy; and



Whereas, insurers estimate that their losses from the attacks could reach 70 billion dollars; and



Whereas, insurance coverage on the World Trade Center and the businesses in and around the World Trade Center were multi-layered, and will affect insurers of all kinds, including property-casualty, liability, workers' compensation, business interruption, life, health, and reinsurance; and



Whereas, insurers across the country have expressed their commitment to meet policyholder obligations resulting from these events; and



Whereas, insurers are concerned that they cannot adequately or accurately price insurance coverage for future catastrophes resulting from terrorism; and



Whereas, the private insurance industry faced an immediate crisis because most reinsurance policies were renewed on January 1, 2002, which resulted in some reinsurers notifying their customers that they would no longer cover terrorism risk and caused some primary carriers to notify state insurance regulators that they intend to seek exclusions of terrorism coverage in their contracts with policyholders; and



Whereas, without adequate insurance coverage, banks may be unwilling to extend loans for commercial transactions, such as mortgages, construction projects, and other capital-intensive programs; and



Whereas, the inability of the insurance industry to cover losses from future terrorist activities may require action by the federal government; and



Whereas, a federal backstop would assure an available and affordable insurance market for America's consumers and businesses in these challenging times; and



Whereas, a federal backstop program would help to eliminate market constriction and prohibitively high prices, would facilitate insurance transactions necessary for commerce, and would assure the broad-based ability of families and businesses to recover from future incidences of terrorism; and



Whereas, without a backstop, a limited availability of insurance against terrorism would have a severe adverse effect on our country's economy as financiers would be reluctant to lend, businesses would be reluctant to invest, and consumers would be unable to afford insurance:



Now, therefore, be it resolved that the members of the House of Representatives of the Ninety-first General Assembly, Second Regular Session, the Senate concurring therein, hereby support the concept of a limited and temporary federal backstop for insurance against terrorism and urges the President of the United States and the United States Congress to take action as soon as possible to address this critical issue; and



Be it further resolved that the Chief Clerk of the Missouri House of Representatives be instructed to prepare properly inscribed copies of this resolution for the President of the United States and each member of the Missouri Congressional Delegation.


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