H. C. R. No. 17 As Introduced

As Introduced

130th General Assembly

Regular Session

2013-2014

H. C. R. No. 17

Representatives Stinziano, Hackett

Cosponsors: Representatives Grossman, Mallory

A CONCURRENT RESOLUTION

To urge the Congress of the United States to 1
reauthorize federally provided terrorism 2
reinsurance for insurers in order to maintain 3
stability in the insurance and reinsurance markets 4
to continue to deliver substantive, direct 5
benefits to businesses, workers, consumers, and 6
the economy overall in the aftermath of a 7
terrorist attack on the United States. 8

BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF OHIO
(THE SENATE CONCURRING):

       WHEREAS, Insurance helps protect the United States economy 9
from the adverse effects of the risks inherent in economic growth 10
and development while also providing the resources necessary to 11
rebuild physical and economic infrastructure, offer 12
indemnification for business disruption, and provide coverage for 13
medical and liability costs from injuries and loss of life in the 14
event of catastrophic losses to persons or property; and 15

       WHEREAS, The terrorist attack of September 11, 2001, produced 16
insured losses larger than any natural or man-made event in 17
history, with claims paid by insurers to their policyholders 18
eventually totaling some $32.5 billion, making this the second 19
most costly insurance event in United States history; and 20

       WHEREAS, The sheer enormity of the loss, combined with the 21
possibility of future attacks, produced financial shockwaves that 22
shook insurance markets causing insurers and reinsurers to exclude 23
coverage arising from acts of terrorism from virtually all 24
commercial property and liability policies; and 25

       WHEREAS, The lack of terrorism risk insurance contributed to 26
a paralysis in the economy, especially in construction, tourism, 27
business travel, and real estate finance; and 28

       WHEREAS, The United States Congress originally passed the 29
Terrorism Risk Insurance Act of 2002, Pub. L. 107-297 (TRIA), in 30
which the federal government agreed to provide terrorism 31
reinsurance to insurers and reauthorized this arrangement via the 32
Terrorism Risk Insurance Extension Act of 2005, Pub. L. 109-144, 33
and the Terrorism Risk Insurance Program Reauthorization Act of 34
2007, Pub. L. 110-160 (TRIPRA); and 35

       WHEREAS, Under TRIPRA the federal government provides such 36
reinsurance after industry-wide losses attributable to annual 37
certified terrorism events exceed one hundred million dollars; and 38

       WHEREAS, Coverage under TRIPRA is provided to individual 39
insurers after the insurer has incurred losses related to 40
terrorism equal to twenty per cent of the insurer's previous year 41
earned premium for property-casualty lines; and 42

       WHEREAS, After an individual insurer has reached such a 43
threshold, the insurer pays fifteen per cent of residual losses 44
and the federal government pays the remaining eighty-five per 45
cent; and 46

       WHEREAS, The Terrorism Risk Insurance Program has an annual 47
cap of one hundred billion dollars of aggregate insured losses, 48
beyond which the federal program does not provide coverage; and 49

       WHEREAS, TRIPRA requires the federal government to recoup one 50
hundred per cent of the benefits provided under the program via 51
policy holder surcharges to the extent the aggregate insured 52
losses are less than twenty-seven billion five hundred million 53
dollars and enables the government to recoup expenditures beyond 54
that mandatory recoupment amount; and 55

        WHEREAS, Without question, TRIA and its successors are the 56
principal reason for the continued stability in the insurance and 57
reinsurance market for terrorism insurance to the benefit of our 58
overall economy; and 59

       WHEREAS, The presence of a robust private/public partnership 60
has provided stability and predictability and has allowed insurers 61
to actively participate in the market in a meaningful way; and 62

       WHEREAS, Without a program such as TRIPRA, many of our 63
citizens who want and need terrorism coverage to operate their 64
businesses all across the nation would be either unable to get 65
insurance or unable to afford the limited coverage that would be 66
available; and 67

       WHEREAS, Without federally provided reinsurance, property and 68
casualty insurers will face less availability of terrorism 69
reinsurance and will therefore be severely restricted in their 70
ability to provide sufficient coverage for acts of terrorism to 71
support our economy; and 72

       WHEREAS, Unfortunately, the threat from terrorist attack in 73
the United States is both real and substantial and will remain as 74
such for the foreseeable future; and 75

       WHEREAS, The fact that there has been no successful terrorist 76
attack in the United States in eleven years is a remarkable 77
achievement of the hard work and dedication of this nation's 78
counterterrorism agencies and the bravery of the men and women in 79
uniform who fought and continue to fight battles abroad to keep us 80
safe here at home; now therefore be it 81

       RESOLVED, That we, the members of the 130th General Assembly 82
of the State of Ohio, urge the United States Congress and the 83
President of the United States to reauthorize the Terrorism Risk 84
Insurance Program; and be it further 85

       RESOLVED, That the Clerk of the House of Representatives 86
transmit duly authenticated copies of this resolution to the 87
President of the United States, the Speaker and Clerk of the 88
United States House of Representatives, the President Pro Tempore 89
and the Secretary of the United States Senate, the members of the 90
Ohio Congressional delegation, and the news media of Ohio. 91

WHEREAS, Insurance helps protect the United States economy	9
from the adverse effects of the risks inherent in economic growth	10
and development while also providing the resources necessary to	11
rebuild physical and economic infrastructure, offer	12
indemnification for business disruption, and provide coverage for	13
medical and liability costs from injuries and loss of life in the	14
event of catastrophic losses to persons or property; and	15

WHEREAS, The terrorist attack of September 11, 2001, produced	16
insured losses larger than any natural or man-made event in	17
history, with claims paid by insurers to their policyholders	18
eventually totaling some $32.5 billion, making this the second	19
most costly insurance event in United States history; and	20

WHEREAS, The sheer enormity of the loss, combined with the	21
possibility of future attacks, produced financial shockwaves that	22
shook insurance markets causing insurers and reinsurers to exclude	23
coverage arising from acts of terrorism from virtually all	24
commercial property and liability policies; and	25

WHEREAS, The lack of terrorism risk insurance contributed to	26
a paralysis in the economy, especially in construction, tourism,	27
business travel, and real estate finance; and	28

WHEREAS, The United States Congress originally passed the	29
Terrorism Risk Insurance Act of 2002, Pub. L. 107-297 (TRIA), in	30
which the federal government agreed to provide terrorism	31
reinsurance to insurers and reauthorized this arrangement via the	32
Terrorism Risk Insurance Extension Act of 2005, Pub. L. 109-144,	33
and the Terrorism Risk Insurance Program Reauthorization Act of	34
2007, Pub. L. 110-160 (TRIPRA); and	35

WHEREAS, Under TRIPRA the federal government provides such	36
reinsurance after industry-wide losses attributable to annual	37
certified terrorism events exceed one hundred million dollars; and	38

WHEREAS, Coverage under TRIPRA is provided to individual	39
insurers after the insurer has incurred losses related to	40
terrorism equal to twenty per cent of the insurer's previous year	41
earned premium for property-casualty lines; and	42

WHEREAS, After an individual insurer has reached such a	43
threshold, the insurer pays fifteen per cent of residual losses	44
and the federal government pays the remaining eighty-five per	45
cent; and	46

WHEREAS, The Terrorism Risk Insurance Program has an annual	47
cap of one hundred billion dollars of aggregate insured losses,	48
beyond which the federal program does not provide coverage; and	49

WHEREAS, TRIPRA requires the federal government to recoup one	50
hundred per cent of the benefits provided under the program via	51
policy holder surcharges to the extent the aggregate insured	52
losses are less than twenty-seven billion five hundred million	53
dollars and enables the government to recoup expenditures beyond	54
that mandatory recoupment amount; and	55

WHEREAS, Without question, TRIA and its successors are the	56
principal reason for the continued stability in the insurance and	57
reinsurance market for terrorism insurance to the benefit of our	58
overall economy; and	59

WHEREAS, The presence of a robust private/public partnership	60
has provided stability and predictability and has allowed insurers	61
to actively participate in the market in a meaningful way; and	62

WHEREAS, Without a program such as TRIPRA, many of our	63
citizens who want and need terrorism coverage to operate their	64
businesses all across the nation would be either unable to get	65
insurance or unable to afford the limited coverage that would be	66
available; and	67

WHEREAS, Without federally provided reinsurance, property and	68
casualty insurers will face less availability of terrorism	69
reinsurance and will therefore be severely restricted in their	70
ability to provide sufficient coverage for acts of terrorism to	71
support our economy; and	72

WHEREAS, Unfortunately, the threat from terrorist attack in	73
the United States is both real and substantial and will remain as	74
such for the foreseeable future; and	75

WHEREAS, The fact that there has been no successful terrorist	76
attack in the United States in eleven years is a remarkable	77
achievement of the hard work and dedication of this nation's	78
counterterrorism agencies and the bravery of the men and women in	79
uniform who fought and continue to fight battles abroad to keep us	80
safe here at home; now therefore be it	81

RESOLVED, That we, the members of the 130th General Assembly	82
of the State of Ohio, urge the United States Congress and the	83
President of the United States to reauthorize the Terrorism Risk	84
Insurance Program; and be it further	85

RESOLVED, That the Clerk of the House of Representatives	86
transmit duly authenticated copies of this resolution to the	87
President of the United States, the Speaker and Clerk of the	88
United States House of Representatives, the President Pro Tempore	89
and the Secretary of the United States Senate, the members of the	90
Ohio Congressional delegation, and the news media of Ohio.	91