State of Illinois
92nd General Assembly

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 1                          HOUSE RESOLUTION

 2        WHEREAS, Terrorism will continue to be a major  focus  in
 3    the   second   session   of   the   107th  Congress  and  the
 4    Administration's budget reflects the continued priority  this
 5    matter will receive; and

 6        WHEREAS,  The  impact  of  the  September  11th terrorist
 7    attacks on this nation are being felt throughout the  economy
 8    and the effects are growing; and

 9        WHEREAS,  Terrorism  is  a  risk  of  national scope, not
10    limited to any single region, state, or city; and

11        WHEREAS, Terrorism is a risk which cannot be  anticipated
12    and  underwritten  using  accepted  insurance  and  actuarial
13    methods; and

14        WHEREAS,  Following  the  attacks, the global reinsurance
15    industry  has  curtailed  and  in   many   cases   eliminated
16    reinsurance   coverage   for  acts  of  terror,  creating  an
17    unacceptable  concentration  of   liability   and   financial
18    exposure for states and the insurance industry; and

19        WHEREAS,  Insurers,  in  the absence of reinsurance, have
20    been forced to exclude  coverage  to  limit  their  financial
21    exposure, wherever possible; and

22        WHEREAS,     These     exclusions    do    not    include
23    statutorily-required coverages such as workers  compensation,
24    "fire-following",  and  personal  lines  coverages,  creating
25    potentially  catastrophic  financial  risk  for  insurers and
26    self-insured businesses; and

27        WHEREAS, The impact of  exclusions  on  businesses,  both
28    large  and  small,  creates  contingent liabilities affecting
29    their  ability  to  meet  their  obligations  to   employees,
30    suppliers, shareholders, and the public; and
                            -2-                LRB9216659BHbh
 1        WHEREAS, The absence of needed insurance coverage retards
 2    economic  growth, increases uncertainty, lowers available tax
 3    revenues, and puts state budgets at risk and will  result  in
 4    higher  debt-financing  costs  for states and municipalities;
 5    and

 6        WHEREAS, The power and  means  to  address  this  problem
 7    rests only with the Federal Government; therefore, be it

10    we find that it is in the best interest of the nation for the
11    Congress  of  the  United  States   to   consider   terrorism
12    reinsurance  legislation  on  an  expedited  basis; and be it
13    further

14        RESOLVED, That the  members  of  the  Illinois  House  of
15    Representatives   urge   that  the  Congress  enact  and  the
16    President sign  legislation  quickly  in  which  the  federal
17    government  becomes  the  ultimate  insurer  of  catastrophic
18    terrorism risks; and be it further

19        RESOLVED,  That  suitable  copies  of  this resolution be
20    presented  to  the  President  of  the  United  States,   the
21    President  Pro  Tempore  of  the  United  States  Senate, the
22    Speaker of the United States House  of  Representatives,  and
23    each member of the Illinois Congressional delegation.

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