Claims News Service, Apr. 19, 9:59 a.m. EDT — Congressman Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, has announced that his Subcommittee will hold a hearing on April 24, 2007, to discuss extending the Terrorism Risk Insurance Act, which is currently scheduled to expire at the end of 2007.

The Terrorism Risk Insurance Act was first signed into law in Nov. 2002, and was extended for two more years in Dec. 2005. The act provides a governmental backstop for insurance companies in the event of a catastrophe involving nuclear, biological, terrorist, or radioactive attacks by limiting the amount of losses insurance companies would have to absorb. Without the act, commercial terrorism insurance likely would not exist because of the unquantifiable, unpredictable risks inherent in terrorist attacks.

“The Capital Markets Subcommittee is holding this hearing so that members can examine the policy choices that Congress will need to take into account as we consider a bill that would extend and modify the Terrorism Risk Insurance Act,” said Chairman Kanjorski, in a release issued by the House Committee on Financial Services. “During the hearing, we will hear the opinions and ideas of experts on the ways that we can ensure the continued availability of insurance to protect against terrorism risk and options for better safeguarding our nation's economic security.”