House Expected to Consider HR 3210 This Week
Wednesday, November 28th, 2001 Catastrophe Legislation & RegulationThe House of Representatives is expected to consider HR 3210, the Terrorism Risk Insurance Act, this Thursday, Nov. 29. One of the most important provisions of the bill of concern to National Association of Independent Insurers (NAII) members is cross-subsidization - the requirement that all insurance companies and their policyholders, regardless of their exposure to terrorism risks, contribute equally to pay for the losses suffered by those companies with significant terrorism losses. In its original form, HR 3210 would have required smaller insurance companies - insurers that provide the bulk of insurance for "main street businesses" - to subsidize large national commercial insurance companies. Many of these smaller companies have far less exposure to terrorism risks, compared to the large companies writing coverage for skyscrapers and manufacturing plants.
