Terrorism Insurance - Comparison of H.R. 3210, S. 2600, and Conference Report

Publication Date: December 2002

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Business

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Abstract:

The terrorist attacks of September 11 resulted in the largest insured catastrophic loss in history, estimated to total $40 billion. Even though the insurance industry committed to pay losses resulting from the attacks, industry spokesmen asserted that insurers might not be able to cover major future terrorism losses without a federal backstop. The 107th Congress considered how to provide such a backstop.

On November 29, 2001, the House of Representatives passed H.R. 3210, the Terrorism Risk Protection Act, providing for a temporary federal backstop. In the Senate, four similar measures were introduced in 2001, but no action was taken during the first session of the 107th Congress. On June 7, 2002, Senators Dodd, Sarbanes, Schumer, and Reid introduced a compromise proposal, S. 2600, which was passed by the Senate on June 18, 2002. On October 17, 2002, leaders of the House-Senate conference committee and the White House tentatively agreed in principle upon a proposed compromise version of the legislation, which was circulated to all conferees for signatures. The conferees approved the conference report, which was filed November 13. The House agreed to the report by voice vote on November 14, and the Senate by vote of 86-11, on November 19. The President signed the bill, which became P.L. 107-297, the Terrorism Risk Insurance Act, on November 26, 2002.

This report records the legislative development of H.R. 3210, S. 2600, and the conference report language enacted as P.L. 107-297. It will not be updated further. For further information, please call Rawle King (707-5975), or Barbara Miles (707-7804).