Legislature(2001 - 2002)

04/25/2002 02:35 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
          HJR 38-TERRORISM RISK PROTECTION LEGISLATION                                                                      
                                                                                                                                
CHAIRMAN STEVENS announced HJR 38 to be up for consideration.                                                                   
                                                                                                                                
REPRESENTATIVE JOE HAYES, Sponsor  of HJR 38, said the whole point                                                              
of  the  resolution  is  to address  issues  concerning  9/11  and                                                              
liability insurance.  There was an $877,000 increase  in different                                                              
insurance policies  as a  result of 9/11.  The effects of  such an                                                              
enormous loss  has taken  its toll on  the insurance  industry and                                                              
the  American economy.  Several of  the  reinsurance carriers  are                                                              
declining to offer insurance that  covers terrorism now at all and                                                              
others are increasing their rates  tremendously. He noted that the                                                              
aviation  industry has  particularly  been hit  hard  going up  in                                                              
Alaska 20  - 200%  and the  number of  companies willing  to offer                                                              
insurance  in   Alaska  has  decreased   more  than  a   dozen  to                                                              
approximately  six.  One  company   has  also  issued  non-renewal                                                              
notices  regarding  workers  compensation  claims  in  Alaska  and                                                              
several others are publicly considering following suit.                                                                         
                                                                                                                                
     HJR  38   recommends  passage  of  the   Terrorism  Risk                                                                   
     Protection  Act  legislation,  currently in  the  United                                                                   
     State Senate. The Terrorism  Risk Protection legislation                                                                   
     has already passed the House;  it was H.R. 3210 and this                                                                   
     resolution  urges Congress to  create a viable  solution                                                                   
     to the uncertainty of insurance  risk currently faced in                                                                   
     America.  If  a  solution  is   not  found  in  America,                                                                   
     Americans  are left with  limited coverage, the  effects                                                                   
     of  a natural  disaster  or  terrorist attack  could  be                                                                   
     devastating  the American people  and to Alaska  and its                                                                   
     economy as a whole.                                                                                                        
                                                                                                                                
SENATOR AUSTERMAN moved to pass CSHJR  38(L&C) from committee with                                                              
individual recommendations.  There were  no objections and  it was                                                              
so ordered.                                                                                                                     

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