SENATE CONCURRENT RESOLUTION NO. 65
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; and
WHEREAS, insurance coverage on the World Trade Center and the businesses in and around the 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 are concerned that they cannot adequately or accurately price insurance coverage for future catastrophes resulting from terrorism; and
WHEREAS, reinsurers are already notifying their customers that they will no longer cover terrorism risk, and primary carriers are notifying 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 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 facility insurance transactions necessary for commerce, and would assure the broad-based ability of families and businesses to recover from future incidences of terrorism;
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 Senate of the Ninety-first General Assembly, Second Regular Session, the House of Representatives concurring therein, hereby urge the members of Congress to provide for a limited and temporary backstop for insurance against terrorism; and
BE IT FURTHER RESOLVED that the Secretary of the Senate be instructed to prepare a properly inscribed copy of this resolution for each member of Missouri's Congressional Delegation.