House Terrorism Bill Includes Life Insurance Study

By Steven Brostoff

November 30, 2001 at 07:00 PM

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NU Online News Service, Nov. 30, 2:13 p.m. — Washington

The American Council of Life Insurers, Washington, is praising the House of Representatives for passing terrorism insurance legislation that includes a study of the potential impact of a major event on the life insurance industry.

The legislation, H.R. 3210, was approved by the full House yesterday by a 227-193 vote.

"We are pleased that the life insurance study provision was included in the bill," ACLI spokesman Jack Dolan says.

"It is the right thing to do," he adds. "The study aims to answer an important question, what if."

The legislation would create a seven-member commission to study the circumstances under which the life insurance industry might need government assistance in the event of a terrorist attack.

The commission would report back to Congress within 120 days.

Members of the commission would include a representative of the Treasury Department, a representative of the Federal Reserve Board, the assistant to the President for Homeland Security, a representative of the National Association of Insurance Commissioners, Kansas City, Mo., and three insurance industry members.

The industry members would represent primary insurance companies, reinsurance companies and insurance agents.

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