News Room

For Immediate Release - November 19, 2002

Contact:
Jay Hyde, NAREIT, at (202) 739-9425
Darren McKinney, NAM, at (202) 637-3093

Congressional Approval of Terror Insurance Backstop Puts Policyholders on Path to Greater Economic Security

Washington, D.C. -- The Coalition to Insure Against Terrorism (CIAT) welcomed final Congressional passage of legislation creating a federal terrorism insurance backstop, saying the measure "puts business insurance policyholders on the path to greater economic security."

"The nation's policyholders are grateful to all those who were involved in bridging gaps between the House and Senate versions of the terror backstop measure," said Martin DePoy, vice president of government relations at the National Association of Real Estate Investment Trusts and a spokesperson for the 66-member Coalition. "The legislation creates a temporary backstop that will encourage insurance companies to offer comprehensive, affordable terrorism risk insurance, to cover people and property."

In view of renewed threats by terrorists and stepped-up calls for vigilance by U.S. officials, the backstop is an appropriate economic move in an increasingly risky environment. "The absence of comprehensive terror coverage has exposed an increasing number of businesses, property owners and workers to catastrophic loss in the event of another terrorist attack," DePoy explained. "Enactment of the Terrorism Risk Protection Act (H.R. 3210) will help facilitate a return to normalcy in the insurance market. The legislation puts business insurance policyholders on the path to greater economic security. It should lead to more availability and greater affordability in the terror insurance marketplace, while at the same time encouraging economic growth by spurring job creation and new investment."

CIAT also appreciates House, Senate and White House negotiators' efforts to achieve results on the issue of litigation management. "We recognize the importance of making certain that any litigation resulting from a terrorist attack is fair, orderly and equitable," said DePoy. "The Act contains sensible procedures designed to protect victims of terrorism."

CIAT represents a broad group of policyholders from the transportation, real estate, manufacturing, construction, entertainment and retail sectors that have lost coverage or experienced huge increases in premiums for deficient coverage since the September 11 terrorist attacks.

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Coalition to Insure Against Terrorism
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