WHAT'S IN A NAME?

For months now, Congress has debated a federal terrorism bill that would serve as a backstop for insurance companies. If adopted, insurance claims that result from acts of terrorism would be subsidized by the American taxpayer.

Under normal circumstances, Policyholders of America ("POA") would sit on the sidelines on this issue but with membership that includes thousands of taxpayers, we were asked to weigh-in on the subject.

A large portion of American insurance products (specifically, property and casualty) is backed by off-shore entities like Lloyds. Lloyds is a consortium of wealthy investors and corporations; it is not a company. While the corporate members can be easily found out, the individual investors behind Lloyds are a much guarded secret.

POA has learned from a reliable source that some of the individual investors in Lloyds, otherwise known as "Names", have ties to terrorist groups and/or have provided funding to families of suicide bombers.

Most "Names" are obviously pillars of society however some, particularly those with ties to Saudi, Egypt, Syria, and other nations deserve a thorough investigation prior to dumping the financial burden on the American taxpayer by forcing the public to subsidize the industry. If adopted by lawmakers without a thorough investigation, the very people who may support terrorism could be bailed out at the expense of the American taxpayer.

According to Brendan Noonan, a reporter for AM Best, an insurance industry publication,

"Until 1994, all of Lloyd's capital was supplied by wealthy, individual investors, known as Names. They invest in various underwriting syndicates, which are separate businesses operating within Lloyd's. The key point to remember is that Lloyd's itself is not a risk-bearing company but a market in which dozens of syndicates both compete and cooperate. In '94, Lloyd's began allowing corporate capital in alongside the Names, and it now accounts for about 75% of the market's capital, but the Names are still there. I don't think lists of Names are generally available to the public. There are some prominent Names who are widely known." Source: email to President, POA, 5/13/02

The most prudent move is to use the language already in place in the Patriot Act (October, 2001) which would pierce the veil of secrecy of the "Names", to determine who is behind these off-shore backed insurance products. Only then, can the American public be ensured their tax dollars will not be used to subsidize terrorism.

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