Nov 20 2002

STATEMENT OF SENATOR RICHARD SHELBY ON PASSAGE OF THE TERRORISM INSURANCE LEGISLATION

U.S. Senator Richard C. Shelby (R-AL) today commented on the U.S. Senate passage of terrorism insurance legislation:

"Despite the fact that I believe it is important to establish a temporary federal terrorism insurance program, I did not support the conference report because I do not feel that it represents the best deal for the American taxpayer."

"Overall, I think this legislation unnecessarily exposes the U.S. Treasury and taxpayers. Specifically, it allows insurance firms and lawyers to reach settlements involving billions of dollars without direct oversight by the Secretary of Treasury. It also fails to limit punitive damages claims against firms and property owners that have been themselves victims of acts of terrorism."

"In the end, I think Congress could have struck a better bargain for the taxpayer and still provided insurance markets the backstop they need in the immediate future."