November 16, 2007

Reid Statement On Terrorism Risk Insurance Extension

Washington, DC—Senate Majority Leader Harry Reid made the following statement today after the U.S. Senate passed the Terrorism Risk Insurance Program Reauthorization Act:

“The unfortunate reality since the events of September 11 is that the risk of a terrorist attack remains.  As we work to make America more secure and Americans safer, extending the terrorism risk insurance program will ensure the private insurance market has a federal backstop in the event of an attack.

“This program was created in 2002 because after 9/11, the private insurance market vanished for property owners and developers who wanted to insure against the risk of terrorist attacks.  The consequence was that lenders would not make loans to developers who wanted to move forward on construction projects.  American jobs were put in jeopardy at the time we needed productivity most.  And property owners who needed to renew their property and casualty insurance were faced with prohibitively expensive insurance options, threatening their investments. 

“The Terrorism Risk Insurance Program has made that coverage available again to the marketplace and restored investor confidence needed for continued job creation.  Without this program, terrorism insurance will become unavailable or prohibitively expensive, construction projects would grind to a halt and Americans would lose jobs.  In Las Vegas alone, where construction is expected to create hundreds of thousands of jobs in the coming years, this would be unacceptable.”

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