69–006 

110TH CONGRESS REPT. 110–820 " ! HOUSE OF REPRESENTATIVES 2d Session Part 1 

HOLOCAUST INSURANCE ACCOUNTABILITY ACT OF 2008 

AUGUST 1, 2008.—Ordered to be printed 

Mr. FRANK of Massachusetts, from the Committee on Financial 

Services, submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 1746] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 1746) to require disclosure of Holocaust-era policies by insurers and establish a federal cause of action for claims arising out 

of a covered policy, having considered the same, report favorably 

thereon with amendments and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Amendment .............................................................................................................. 2 

Purpose and Summary ............................................................................................ 5 

Background and Need for Legislation .................................................................... 5 

Hearings ................................................................................................................... 9 

Committee Consideration ........................................................................................ 9 

Committee Votes ...................................................................................................... 9 

Committee Oversight Findings ............................................................................... 10 

Performance Goals and Objectives ......................................................................... 10 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 10 

Committee Cost Estimate ....................................................................................... 10 

Congressional Budget Office Estimate ................................................................... 10 

Federal Mandates Statement ................................................................................. 12 

Advisory Committee Statement .............................................................................. 12 

Constitutional Authority Statement ...................................................................... 12 

Applicability to Legislative Branch ........................................................................ 12 

Earmark Identification ............................................................................................ 12 

Section-by-Section Analysis of the Legislation ...................................................... 12 

Additional Views ...................................................................................................... 15 


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AMENDMENT

The amendments are as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Holocaust Insurance Accountability Act of 2008’’. 

SEC. 2. FINDINGS. 

Congress finds the following: 

(1) The Holocaust was one of the most heinous crimes in history, causing the 

suffering of millions of people through torture and other violence, including the 

murder of 6,000,000 Jews and millions of others, the destruction of families and 

communities, and the theft of their assets. 

(2) After World War II, many Holocaust survivors and heirs of Holocaust victims presenting claims to insurance companies lacked policy information and 

vital records needed to satisfy the burden of proof required to bring an insurance claim because such documentation was confiscated by the Nazis or lost in 

the devastation of World War II. 

(3) Following the end of the Cold War, efforts to address open issues concerning restitution and compensation to the victims of Nazi persecution were renewed. International talks involving the United States, Germany, Austria, 

France, Israel, and other nations occurred and agreements were reached to enable restitution for a variety of claims, including claims based on Holocaust-era 

insurance policies. 

(4) In response to the unique difficulties faced by those seeking to bring 

claims based on Holocaust-era insurance policies, Insurance Commissioners of 

the several States, the National Association of Insurance Commissioners 

(NAIC), major Jewish organizations and various European insurance companies 

established the International Commission on Holocaust Era Insurance Claims 

to provide a forum in which claimants could bring claims based on Holocaustera insurance policies. 

(5) In recognition of the preeminence of the States in protecting consumers 

in the insurance marketplace, Congress and the executive branch have a limited 

role in facilitating and assisting the Holocaust-era insurance restitution efforts 

of the several States as embodied principally in the ICHEIC process. 

(6) After ICHEIC and its partner entities paid approximately $300 million to 

more than 47,000 claimants and approximately $200 million to Holocaust-related humanitarian organizations, ICHEIC formally concluded its operation in 

March 2007. 

(7) Experts agree that, by the conclusion of the ICHEIC process, claims based 

on a substantial portion of Holocaust-era insurance policies issued to Holocaust 

victims in Western Europe had been addressed. 

(8) Due to the political and economic conditions in Eastern Europe until the 

end of the Cold War, compensation efforts there have been more limited. The 

ICHEIC process did provide compensation for policies issued by the Eastern European branches and subsidiaries of Western European companies as well as for 

policies issued by nationalized or liquidated Eastern European insurers, drawing from ICHEIC’s humanitarian funds. However, the Eastern European companies and countries did not participate in ICHEIC or any of the related compensation processes. Now that the nations of Eastern Europe have joined the 

community of free and modern nations, it is imperative that the nations of Eastern Europe proactively seek to identify and provide restitution for Holocaustera insurance policies issued within their borders. 

(9) All insurers that participated in ICHEIC are now willing to address all 

inquiries made by Holocaust victims and victims’ heirs, check their archives, 

and settle legitimate claims based on relaxed standards of proof. To facilitate 

the ongoing monitoring of claims based on Holocaust-era insurance policies, the 

Insurance Commissioners of the several States have agreed to coordinate their 

Holocaust-era insurance restitution efforts through the NAIC and the Holocaust 

Claims Processing Office. Similarly, entities that worked in partnership with 

ICHEIC have agreed to maintain their claims processing facilities and cooperate 

with the HCPO in the resolution of Holocaust-era insurance claims. 

(10) It has been the policy of the executive branch to support the resolution 

of Holocaust-era insurance claims through an alternative to litigation. To that 

end, the executive branch has filed statements of interest in court seeking the 

dismissal of cases involving claims for non-payment of Holocaust-era insurance 

policies where there have been independent legal grounds to support such dismissal. 


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(11) This Act does not endorse any State law cause of action and does not 

alter any applicable law, legal precedent or principle in effect at the time of its 

enactment that may be applicable to the resolution of Holocaust-era insurance 

claims. Nor does this Act alter the binding effect of any class action settlement 

involving Holocaust-era insurance claims. 

SEC. 3. INSURER RESPONSE TO INQUIRIES ABOUT COVERED POLICIES. 

(a) REQUIREMENT.— (1) IN GENERAL.—Subject to paragraph (2), an insurer receiving a written inquiry from an eligible person regarding a covered policy for which the person 

may be a beneficiary shall— (A) not later than 90 days after such insurer receives such written inquiry, acknowledge the inquiry in writing and indicate whether such insurer is in possession of information specifically relating to such covered 

policy; 

(B) within a reasonable period of time, provide to such eligible person all 

information in the possession of such insurer regarding whether such person is a potential beneficiary of such policy; and 

(C) immediately notify the Holocaust Claims Processing Office in writing 

of the inquiry and provide a copy of all acknowledgments and information 

provided to such eligible person under subparagraph (A) or (B) to the 

HCPO. 

(2) TERMINATION OF REQUIREMENT.—An insurer receiving a written inquiry 

under paragraph (1) is not required to comply with the requirements of such 

paragraph for any written inquiry received on or after the date that is 10 years 

after the date of the enactment of this Act. 

(b) AGREEMENTS WITH EUROPEAN COUNTRIES.—

(1) AGREEMENTS.—The Secretary of State shall seek to enter into an agreement with each European country with which no appropriate agreement exists 

to facilitate the response requirements of subsection (a). 

(2) REPORT.—Not later than 180 days after the date of the enactment of this 

Act, and annually thereafter, the Secretary of State shall submit to Congress 

a report on efforts to carry out this subsection. 

SEC. 4. MONITORING BY THE HOLOCAUST CLAIMS PROCESSING OFFICE. 

The Secretary of the Treasury is authorized and encouraged to enter into an 

agreement with the Holocaust Claims Processing Office to provide for—

(1) the HCPO to monitor compliance with the requirements of section 3(a); 

(2) the HCPO to notify the Secretary of the Treasury of the identity of any 

insurer that the HCPO is aware of that is not in compliance with the requirements of section 3(a) not later than 30 days after the failure of such insurer 

to comply with such requirements; 

(3) the HCPO to annually notify the Committee on Financial Services of the 

House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, the Secretary of the Treasury, and the Secretary of State 

of the identity of each insurer that fails to comply with the requirements of section 3(a); 

(4) subject to appropriations, the transfer to the HCPO of amounts equal to 

the amounts received by the Government under section 5 for use in carrying 

out paragraphs (1) and (2); and 

(5) the issuance of such guidelines and regulations as are necessary to carry 

out this section and sections 3 and 5(a). 

SEC. 5. PENALTY. 

(a) IN GENERAL.—The Secretary of the Treasury shall assess a civil penalty of not 

less than $5,000 for each day that an insurer fails to comply with the requirements 

of section 3(a) for an inquiry referred to in such section, as determined by the Secretary after consideration of information provided by the Holocaust Claims Processing Office. Each failure to comply with the requirements of section 3(a) for an 

inquiry under such section shall be considered a separate offense. 

(b) ALTERNATIVE ASSESSMENT.—If an insurer based outside of the United States 

is assessed a penalty under subsection (a) and refuses to pay such penalty and the 

Secretary is unable to collect such penalty from such insurer, the Secretary may 

seek to attach a lien on any payment (including the remittance of a dividend or 

management fee) to such insurer from a subsidiary of such insurer that is domiciled 

in the United States if—

(1)(A) such insurer owns substantially all of the voting shares of such subsidiary; or 

(B) there is substantial overlap of membership of the board of directors and 

executive officers of such insurer and such subsidiary; 


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(2) the Secretary notifies such insurer, such subsidiary, and the appropriate 

State regulator of such subsidiary of the intent of the Secretary to attach a lien 

to such remittance; and 

(3) the Secretary provides such insurer and such subsidiary a reasonable opportunity to contest the attachment of the lien. 

(c) REGULATIONS.—The Secretary shall issue regulations to carry out subsection 

(b). 

SEC. 6. FEDERAL CAUSES OF ACTION. 

(a) FEDERAL CAUSE OF ACTION.— (1) IN GENERAL.—There shall exist a Federal cause of action for any claim 

arising out of or related to a covered policy against any insurer. 

(2) STANDING.—A claim under paragraph (1) may be brought by an eligible 

person. 

(3) STATUTE OF LIMITATIONS.—Any action brought under this Act shall be 

filed not later than 10 years after the effective date of this Act. 

(b) RIGHT TO OPT OUT OF CLASS ACTION PROCEEDINGS.— (1) SENSE OF CONGRESS.—It is the sense of Congress that claimants have the 

right to opt out of new or ongoing class action proceedings relating to claims 

based on Holocaust-era insurance policies in accordance with Rule 23 of the 

Federal Rules of Civil Procedure. 

(2) CLARIFICATION.—Nothing in this Act shall be construed to affect any class 

action settlement agreement, or releases given therein, made before the date of 

the enactment of this Act. 

SEC. 7. LIMITATION ON FEDERAL CAUSE OF ACTION AND REQUIREMENT TO RESPOND TO INQUIRY. 

(a) IN GENERAL.—No cause of action shall exist for a claim against an insurer relating to, and an insurer is not required to comply with the requirements of section 

3(a) for a written inquiry regarding, a covered policy for which— (1) payment has been made or release has been granted; 

(2) payment has been received or denied under the process of the International Commission on Holocaust Era Insurance Claims, any similar process 

that was conducted in partnership with ICHEIC, any government sponsored 

Holocaust claims process, the Holocaust Claims Processing Office, or any process for the resolution of Holocaust-era insurance claims established pursuant to 

a class action settlement; or 

(3) the claimant previously filed an action against such insurer. 

(b) CLARIFICATION OF APPLICABILITY.—Subsection (a) shall not apply to a claim for 

which a humanitarian payment has been received from ICHEIC and that is being 

asserted—

(1) against an insurer that did not participate in ICHEIC; or 

(2) based on information not reasonably available before the conclusion of the 

ICHEIC process. 

SEC. 8. EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT. 

(a) IN GENERAL.—The Secretary of the Treasury shall instruct the United States 

Executive Director at the European Bank for Reconstruction and Development to 

use the voice and vote of the United States to create and advocate the policies of 

the Bank to encourage Eastern European countries to engage in and pursue restitution programs in compliance with this Act. 

(b) REPORT.—Not later than one year after the date of the enactment of this Act, 

and three years thereafter, the Secretary of the Treasury shall submit to Congress 

a report on the progress of carrying out subsection (a). 

SEC. 9. DEFINITIONS. 

In this Act: 

(1) COMMISSIONER OF INSURANCE.—The term ‘‘commissioner of insurance’’

means the highest ranking officer of a State responsible for regulating insurance. 

(2) COVERED POLICY.—The term ‘‘covered policy’’ means any insurance policy 

that was—

(A) in effect at any time after January 30, 1933, and before December 31, 

1945; and 

(B) issued to a policyholder or named a beneficiary who was deprived of 

their life, suffered damage to their mental or physical health, suffered loss 

or deprivation of financial or other assets, or suffered any other loss or 

damage to their property as a result of racial, religious, political, or ideological persecution by organs of the National Socialist Government of Germany 

or by other Governmental authorities or entities controlled by such Governmental authorities in the territories occupied by the National Socialist GovVerDate Aug 31 2005 09:54 Aug 04, 2008 Jkt 069006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6621 E:\HR\OC\HR820P1.XXX HR820P1

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ernment of Germany or its European allies during the period described in 

subparagraph (A). 

(3) ELIGIBLE PERSON.—The term ‘‘eligible person’’ means a person who purchased a covered policy, a beneficiary of such person with respect to such policy, 

an heir of such person or such beneficiary with respect to such policy, or an assignee of such person, such beneficiary, or such heir with respect to such policy. 

(4) HOLOCAUST CLAIMS PROCESSING OFFICE; HCPO.—The terms ‘‘Holocaust 

Claims Processing Office’’ and ‘‘HCPO’’ mean the Holocaust Claims Processing 

Office of the New York State Banking Department. 

(5) INTERNATIONAL COMMISSION ON HOLOCAUST ERA INSURANCE CLAIMS; 

ICHEIC.—The terms ‘‘International Commission on Holocaust Era Insurance 

Claims’’ and ‘‘ICHEIC’’ mean the International Commission on Holocaust Era 

Insurance Claims established through the memorandum of understanding and 

bilateral or multilateral agreements between the Commission, relevant foreign 

governments, and the following insurers and their successors in interest: 

(A) The Dutch Association of Insurers and the members of the Association. 

(B) AXA SA together with its subsidiaries (the AXA Group). 

(C) Assicurazioni Generali S.P.A. 

(D) Zurich Life Insurance Company and its affiliates. 

(E) Allianz SE. 

(F) Winterthur Swiss Insurance Company together with its subsidiaries 

(the Winterthur Group). 

(G) All insurers participating in the process of the Commission through 

bilateral or multilateral agreements. 

(6) INSURER.—The term ‘‘insurer’’ means any person engaged in the business 

of insurance in interstate or foreign commerce, if the person issued a covered 

policy, or a successor in interest to such person. 

Amend the title so as to read: 

A bill to further facilitate payment of Holocaust-era insurance claims. 

PURPOSE AND SUMMARY

H.R. 1746, the Holocaust Insurance Accountability Act of 2008, 

is intended to build on prior Holocaust-era insurance restitution efforts and further facilitate payment of Holocaust-era insurance 

claims not previously addressed by the courts or by other Holocaust 

restitution programs. H.R. 1746 requires that insurance companies 

respond within 90 days to any new inquiry received from any potential beneficiary of any Holocaust-era insurance policy. Compliance with this reporting requirement will be monitored by the New 

York State Holocaust Claims Processing Office (HCPO) and enforced through civil penalties assessed by the Secretary of the 

Treasury acting on information provided by the HCPO. H.R. 1746 

also creates a Federal cause of action for claimants who have not 

previously brought a claim in court, or filed claims through the 

International Commission on Holocaust Era Insurance Claims 

(ICHEIC), or through another Holocaust restitution program. Finally, the bill requires the U.S. representative to the European 

Bank for Reconstruction and Development to encourage Eastern 

European countries to participate in the Holocaust-era insurance 

restitution programs. 

BACKGROUND AND NEED FOR LEGISLATION

Following the Second World War many Western European countries passed laws and created programs to provide restitution for 

property confiscated from victims of the Holocaust. While unpaid or 

confiscated insurance policies were included in these post-war restitution efforts, the difficulty of accessing records and in some instances, the destruction of these records as a result of war, made 

it difficult for Holocaust victims and their heirs to file claims withVerDate Aug 31 2005 09:54 Aug 04, 2008 Jkt 069006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR820P1.XXX HR820P1

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out highly specific information regarding the policy. Moreover, the 

country where the policy was purchased also created an often insurmountable barrier for those wishing to file claims. Countries 

like Poland, Hungary and Czechoslovakia, which became part of 

the Soviet Bloc after 1945 nationalized and liquidated private insurance companies and imposed restrictions on who could receive 

payments on policies. Although some of the West European companies that operated in Central and Eastern European markets still 

exist today, many of the companies that sold insurance in these 

countries have no present-day successors. 

Despite these difficulties, during the 1990s, Jewish organizations, Holocaust survivors, and the U.S. and Israeli governments 

renewed their efforts to obtain compensation for survivors who had 

not participated in previous post-war restitution programs. In the 

mid-to-late 1990s class-action lawsuits against Swiss, German, 

Austrian, Italian, and French companies brought widespread international attention to the issue of looted Holocaust-era assets, including unpaid insurance policies. The Clinton Administration took 

the lead in facilitating broad compensation agreements with the 

governments of Germany, Austria, and France. Although efforts focused largely on property restitution and compensating victims of 

forced and slave labor, each of these agreements also had an insurance-related component. 

Concurrent with these intergovernmental negotiations, and in response to increasing claims against European insurance companies 

operating in the United States, the National Association of Insurance Commissioners (NAIC) formed a Working Group on Holocaust 

Insurance Claims to reach out to Holocaust victims and their heirs 

to better determine the scope of the problem, and to initiate a dialogue with European insurers about how to resolve the issue of unpaid claims. In August 1998 the NAIC, several European insurers, 

the Conference of Jewish Material Claims against Germany 

(Claims Conference), the World Jewish Restitution Organization 

(WJRO), and the State of Israel signed a Memorandum of Understanding (MOU) establishing the International Commission on Holocaust Era Insurance Claims (ICHEIC). The MOU tasked ICHEIC 

with identifying relevant Holocaust-era insurance policies issued 

between 1920 and 1945, reaching out to potential claimants and 

encouraging them to participate in the ICHEIC process, and assisting Holocaust victims and their heirs in resolving claims. Members 

of ICHEIC—chaired by former U.S. Secretary of State Lawrence 

Eagleburger—agreed that ICHEIC’s claims process would adhere to 

the following principles: (i) Claimants would not be charged to file 

a claim and no ICHEIC funds were used to pay attorneys’ fees; (ii) 

ICHEIC would evaluate claims based on relaxed standards of 

proof—given that a significant number of potential claimants did 

not possess policy documentation, claimants would not be required 

to name a specific insurance company or provide documentation of 

an insurance policy; and (iii) ICHEIC and participating insurance 

companies would conduct archival research in order to establish a 

database of potential policyholders against which to match submitted claims. 

Before embarking on its tasks, ICHEIC commissioned a report to 

estimate the volume and value of Holocaust-era policies that remained unpaid at the end of the 20th century. Prepared under the 


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1The Pomeroy-Ferras Report is available online at: http://www.icheic.org/pdf/PomeroyFerras%20Report.pdf. 2See, Sidney Zabludoff, ‘‘The International Commission of [sic.] Holocaust-Era Insurance 

Claims: Excellent Concept but Inept Implementation,’’ Jewish Political Studies Review, Spring 

2005. 

supervision of then-North Dakota Insurance Commissioner Glenn 

Pomeroy and European insurance expert, Philippe Ferras, the 

Pomeroy-Ferras Report remains the only widely accepted source of 

baseline data relevant to Holocaust-era insurance restitution.1

Based on information contained in the Pomeroy-Ferras Report and 

other sources, experts supportive of H.R. 1746 estimate the largest 

possible universe of policies relevant to Holocaust-era insurance 

restitution to be approximately 800,000 policies.2 Acknowledging 

the significantly more developed insurance marketplace that existed in pre-war Western Europe, the Pomeroy-Ferras Report further determined that 80 percent of policies relevant to Holocaustera insurance restitution had been issued to policyholders in Western Europe. Given the successful restitution programs that existed 

in post-war Western Europe, the Pomeroy-Ferras Report was able 

to conclude that approximately 70 percent of policies relevant to 

Holocaust-era insurance restitution issued in Western Europe had 

been addressed before the creation of ICHEIC. In contrast, Pomeroy-Ferras also determined that, of the 20 percent of policies relevant to Holocaust-era insurance restitution that were issued in 

Eastern Europe, only 10 percent of policies had been addressed before the creation of ICHEIC. Therefore, while the Pomeroy-Ferras 

Report represented the beginning point for the ICHEIC process, it 

made clear that ICHEIC and subsequent Holocaust-era insurance 

restitution efforts would be wrapping up Holocaust-era insurance 

restitution in Western Europe but only beginning Holocaust-era insurance restitution in Eastern Europe. 

ICHEIC received approximately $550 million from participating 

insurers. Of this, $350 million was secured from German companies through a 2000 executive agreement between the United 

States and Germany. A further $100 million came from the Italian 

insurer Assicurazioni Generali, S.p.A., and the remaining $100 million was contributed by the various individual insurance companies 

and national insurance associations that participated in the 

ICHEIC process. In addition to five insurers on ICHEIC’s board, 

ICHEIC secured the participation of more than 75 other companies 

through bilateral agreements with the German, Dutch, Austrian, 

and Belgian insurance associations. 

It is important to note that participation of the German insurance association, and indeed the participation of all the insurers 

that participated in ICHEIC as well as the Austrian General Settlement Fund, was conditioned on explicit or tacit assurances of 

‘‘legal peace’’ provided by the Clinton Administration and maintained by the Bush Administration. Under these assurances of 

‘‘legal peace,’’ the Clinton and Bush administrations have agreed to 

intervene on behalf of ICHEIC participants that are sued in U.S. 

courts. This cooperation, which is ongoing, was a key feature of the 

ICHEIC process and fundamental to its success in resolving claims, 

according to the testimony of former Deputy Treasury Secretary 


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3See, testimony of Stuart Eizenstat before the House Committee on Financial Services, during 

a hearing entitled ‘‘The Holocaust Insurance Accountability Act of 2007 (H.R. 1746): Holocaust 

Era Insurance Restitution After ICHEIC, The International Commission on Holocaust Era Insurance Claims,’’ February 7, 2008. Pp. 31–32. 

Eizenstat who served as chief negotiator for Holocaust matters for 

the Clinton Administration.3

ICHEIC’s claims process opened in early 2000 and closed in 

March 2007. In total, ICHEIC facilitated the payment of approximately $300 million to approximately 48,000 claimants. While 

some 43,000 claims received no payment from ICHEIC, those 

claims were often determined to have been honored under previous 

compensation agreements, or were determined to fall short of the 

relaxed standards of proof established by ICHEIC. In addition to 

the funds paid to individual claimants, ICHEIC paid approximately 

$200 million to a ‘‘humanitarian fund’’ overseen by the Claims Conference. Prior to ICHEIC’s closure, its participating insurance companies, including members of the German and Dutch insurance associations, agreed that they will continue to accept and honor 

claims based on ICHEIC’s relaxed standards of proof. 

For almost a decade Congress has been actively aware of the 

issues surrounding Holocaust-era insurance restitution. In February 2000, the Financial Services Committee addressed the topic 

in a hearing entitled ‘‘Restitution of Holocaust Assets.’’ Likewise, 

hearings before the House Committee on Government Reform between 2001 and 2003 highlighted the ICHEIC process. Also, legislation proposed in the 107th, 108th, and 109th Congresses mirrors 

some provisions of H.R. 1746, as introduced. Opposed by successive 

U.S. Administrations, the House declined to act on legislation relating to Holocaust-era insurance restitution while the ICHEIC process remained actively underway. Congress’s authority to act in the 

field of Holocaust-era insurance restitution and its failure to do so 

previously were noted by the Supreme Court when it upheld 

ICHEIC as the then-exclusive national approach to Holocaust-era 

insurance restitution in American Ins. Assn. v. Garamendi, 539 

U.S. 396 (2003), at 429. 

When ICHEIC concluded its period of active operation in March 

2007, Congress again turned its attention to the issue of Holocaustera insurance restitution. Seeking both to endorse the successes of 

prior Holocaust-era insurance restitution efforts and to correct 

their shortcomings where deemed necessary, three areas emerged 

where Congress could facilitate the resolution of previously unresolved Holocaust-era insurance claims. The first of these areas of 

concern relates to the accessibility of information regarding Holocaust-era insurance policies. ICHEIC published more than 500,000 

names of potential Holocaust-era policyholders on their website. 

Recognizing that this was a comprehensive, but not complete, effort, H.R. 1746 creates the first ever Federal mandate requiring insurers to respond to requests for information regarding Holocaustera insurance policies. 

Second, H.R. 1746 provides a right of access to the Federal courts 

to individuals with previously unaddressed Holocaust-era insurance claims. The Federal cause of action created in H.R. 1746 applies only prospectively and thereby expressly protects the finality 

of claims addressed by previous judicial decisions, settlements, and 

Holocaust restitution efforts. However, the creation of the Federal 


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cause of action also expressly allows access to U.S. Courts for Holocaust-era insurance claims not filed prior to the bill’s enactment. 

Finally, through H.R. 1746 Congress both takes note of and 

seeks to begin to address the broader issue of the restitution of 

Holocaust-era assets in Eastern Europe. 

HEARINGS

On February 7, 2008, the House Committee on Financial Services held a hearing entitled, ‘‘The Holocaust Insurance Accountability Act of 2007 (H.R. 1746): Holocaust Era Insurance Restitution After ICHEIC, the International Commission on Holocaust Era 

Insurance Claims.’’ The following witnesses testified: 

Witness List: 

Panel One 

• Ambassador J. Christian Kennedy, Special Envoy for 

Holocaust Issues, U.S. Department of State 

• Dr. Michael Kurtz, Assistant Archivist for Records 

Services, National Archives and Records Administration 

Panel Two 

• Mr. Stuart Eizenstat, Former Special Representative 

of the President & Secretary of State on Holocaust-Era 

Issues 

• Mr. Sam Dubbin, Esq., Attorney, Miami, Florida 

• Ms. Diane Koken, Former Vice-Chairman, ICHEIC; 

Former Pennsylvania Insurance Commissioner 

• Mr. Sidney Zabludoff, Former Consultant, Conference 

on Jewish Material Claims Against Germany, Inc. 

• Mr. Roman Kent, Chairman, American Gathering of 

Jewish Holocaust Survivors 

• Mr. Israel Arbeiter, President, American Association 

of Jewish Holocaust Survivors of Greater Boston 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

June 25, 2008, and ordered reported H.R. 1746, Holocaust Insurance Accountability Act of 2007, as amended, to the House with a 

favorable recommendation by a voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. No record votes were 

taken in conjunction with the consideration of this legislation. A 

motion by Mr. Frank to report the bill, as amended, to the House 

with a favorable recommendation was agreed to by a voice vote. 

During the consideration of the bill, the following amendments 

were considered: 

An amendment in the nature of a substitute, by Mr. Frank, No. 

1, was agreed to, as amended, by voice vote. 

An amendment to the amendment in the nature of a substitute 

by Mr. Sherman, No. 1a, regarding domestic subsidiaries, was 

agreed to, as modified, by voice vote. 


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An amendment en bloc to the amendment in the nature of a substitute by Mr. Sherman, No. 1b, regarding Holocaust insurance registry and civil penalties, was not agreed to by voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee held a hearing and made findings that are reflected in this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee establishes the following performance related goals and objectives for this legislation: 

H.R. 1746 is intended to build on prior Holocaust-era insurance 

restitution efforts and further facilitate payment of Holocaust-era 

insurance claims not previously addressed by the courts or by other 

Holocaust restitution programs. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

JULY 29, 2008. 

Hon. BARNEY FRANK, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1746, the Holocaust Insurance Accountability Act of 2008. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

PETER R. ORSZAG. 

Enclosure. 

H.R. 1746—Holocaust Insurance Accountability Act of 2008 

H.R. 1746 would require insurance companies to respond to inquiries about the existence of Holocaust-era insurance policies. The 


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legislation would require the Department of the Treasury to enter 

into an agreement with the New York State Holocaust Claims 

Processing Office (HCPO) to monitor company responses and report 

to the Treasury and the Congress on compliance with the proposed 

federal requirement. Failure to comply with individual inquiries 

would subject insurers to civil penalties. In addition, the legislation 

would require the Departments of State and the Treasury to seek 

agreements with European countries to facilitate responses from 

insurers in Europe. Based on information from the Departments of 

State and the Treasury, CBO estimates that implementing H.R. 

1746 would cost about $500,000 annually, assuming appropriation 

of the necessary amounts. 

Enacting H.R. 1746 could affect federal revenues because the bill 

would impose new civil penalties on insurance companies if they 

fail to respond to inquiries. Collections of civil penalties are recorded in the budget as revenues. Subject to appropriation, those 

penalties could be spent by HCPO. CBO expects that any additional revenues would not be significant because of the small number of fines likely to be collected. 

H.R. 1746 would impose private-sector mandates, as defined in 

the Unfunded Mandates Reform Act (UMRA), on certain insurers. 

The bill would require an insurer, after receiving a written inquiry 

from a potential beneficiary of such a policy, to: Acknowledge that 

inquiry in writing, indicating whether the insurer has information 

specifically related to a covered policy as defined in the bill; provide 

to each person making such an inquiry any information regarding 

whether that person is a potential beneficiary; and immediately notify the Holocaust Claims Processing Office in writing of each inquiry and provide a copy of all acknowledgments and information 

to persons making such inquiries. Based on information from the 

insurance industry, CBO expects that the cost to U.S. firms of complying with the mandates would fall below the annual threshold for 

private-sector mandates ($136 million in 2008, adjusted annually 

for inflation). 

H.R. 1746 contains no intergovernmental mandates as defined in 

UMRA and would not affect the budgets of state, local, or tribal 

governments. 

On February 6, 2008, CBO transmitted a cost estimate for H.R. 

1746 as ordered reported by the House Committee on Foreign Affairs on October 23, 2007. Both bills address Holocaust-era insurance policies but have different provisions. The version of H.R. 

1746 reported by the House Committee on Foreign Affairs would 

create a Holocaust Insurance Registry through the National Archives and Records Administration, while the version reported by 

the House Committee on Financial Services would require insurance companies to respond to individual inquiries about Holocaustera insurance policies. CBO’s cost estimates reflect those differences. H.R. 1746 as ordered reported by the House Committee 

on Foreign Affairs contains a private-sector mandate in that it 

would require insurers to electronically file certain information 

about Holocaust-era policies with the Secretary of Commerce. CBO 

determined that the cost of complying with that mandate would fall 

below the UMRA’s annual threshold. 

The CBO staff contacts for this estimate are Matthew Pickford 

(for federal costs) and Paige Piper/Bach (for the private-sector imVerDate Aug 31 2005 09:54 Aug 04, 2008 Jkt 069006 PO 00000 Frm 00011 Fmt 6659 Sfmt 6602 E:\HR\OC\HR820P1.XXX HR820P1

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pact). This estimate was approved by Theresa Gullo, Deputy Assistant Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that the Constitutional 

Authority of Congress to enact this legislation is provided by Article 1, section 8, clause 1 (relating to the general welfare of the 

United States) and clause 3 (relating to the power to regulate interstate commerce). 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 1746 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section designates the short title of the bill as the ‘‘Holocaust Insurance Accountability Act of 2008.’’

Section 2. Findings 

Section 2 sets out a brief history of Holocaust-era insurance restitution, provides findings for this legislation and clarifies 

Congress’s intent that this legislation apply prospectively while 

leaving intact judicial decisions, settlements and Holocaust restitution efforts. 

Section 3. Insurer response to inquiries about covered policies 

Section 3 requires insurers to respond to requests for information 

regarding Holocaust-era insurance policies within 90 days of receiving the request and to indicate whether the insurer has information regarding the request. Section 3 also requires insurers to notify the New York State Holocaust Claims Processing Office of all 

inquires made under this section. This requirement expires 10 

years after enactment. Section 3 also requires the Secretary of 

State to seek to enter into agreements with certain European countries to facilitate requests under this section. 


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Section 4. Monitoring by the Holocaust Claims Processing Office 

Recognizing the ongoing importance of the States in consumer 

protection in the insurance marketplace, H.R. 1746’s reporting requirement is monitored by the States, acting through the New York 

State Holocaust Claims Processing Office. Section 4 provides that 

the Holocaust Claims Processing Office will monitor the provision 

of information required under Section 3 and periodically inform the 

Congress, the Secretary of State and the Secretary of the Treasury 

of insurers who have failed to comply with Section 3. 

Section 5. Penalty 

Section 5 provides that there will be a $5,000 per day penalty for 

any insurer who fails to comply with Section 3. Each failure to 

comply with Section 3 shall be considered a separate offense. Enforcement of the Section 3 reporting requirement is the responsibility of the Secretary of the Treasury. To prevent foreign insurers 

who have assets in the U.S. from ignoring the reporting requirement, Section 5 permits the Secretary to collect unpaid civil penalties assessed under this section by placing liens on transfers to 

a non-compliant foreign insurer from its U.S. subsidiaries. 

Section 6. Federal cause of action 

Section 6 creates a Federal cause of action with a ten-year statute of limitations for any claim arising out of a Holocaust-era insurance policy. In addition, Section 6 expresses the sense of Congress that claimants maintain the right to opt out of relevant new 

class action proceedings. 

Section 7. Limitations on the cause of action 

Section 7 provides that the cause of action will not apply to covered insurance policies for which the claimant has previously filed 

a claim in court, with ICHEIC or with any of ICHEIC’s partner entities, or for which a payment has been made or release has been 

granted. Claimants who received certain humanitarian payments 

under ICHEIC may bring an action against any non-ICHEIC company. In addition, claimants who have not submitted a claim to 

ICHEIC or a similar entity that worked with ICHEIC, may bring 

an action against any ICHEIC participating company or nonICHEIC company. 

Section 8. European Bank for Reconstruction and Development 

Section 8 requires that the European Bank for Reconstruction 

and Development encourage Eastern European countries to engage 

in and pursue Holocaust-era insurance restitution programs in 

compliance with this Act. 

Section 9. Definitions 

Section 9 defines the following terms: 

(1) COMMISSIONER OF INSURANCE. 

(2) COVERED POLICY.—Any insurance policy that was in effect between January 30, 1933 and December 31, 1945 and was 

issued to a Holocaust victim or survivor. 

(3) ELIGIBLE PERSON.—A person who purchased a covered 

policy, a beneficiary, an heir, or an assignee of such person. 

(4) HOLOCAUST CLAIMS PROCESSING OFFICE; HCPO. 


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(5) INTERNATIONAL COMMISSION ON HOLOCAUST ERA INSUR- ANCE CLAIMS; ICHEIC.—The Commission established through 

the memorandum of understanding and bilateral or multilateral agreements between the Commission, relevant foreign governments, and the following insurers and their successors in 

interest: 

(A) The Dutch Association of Insurers and its members. 

(B) The AXA Group. 

(C) Generali. 

(D) Zurich. 

(E) Allianz. 

(F) Winterthur. 

(G) All insurers participating in the process of the Commission through bilateral or multilateral agreements. 

(6) INSURER.—Any person engaged in the business of insurance in interstate or foreign commerce, if the person issued a 

covered policy, or a successor in interest to such person. 


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ADDITIONAL VIEWS 

H.R. 1746 reflects another difficult chapter in the tragic and disturbing history of the Holocaust, which lingers on in our collective 

conscience to this day. 

There is broad agreement among all parties involved that we 

must encourage the fair and just resolution of all insurance claims 

that remain unsettled from the Holocaust era to the maximum extent possible, even with the long-standing problem of having such 

little evidence and documentation so many years after the fact. 

While we were able to work toward a greater consensus on many 

features of H.R. 1746, we remain concerned by the provisions in 

Section 6 and Section 7 that create a new Federal cause of action 

with a ten-year statute of limitations. These unwarranted provisions open the door for new lawsuits against companies that cooperated in the International Commission on Holocaust Era Insurance Claims (ICHEIC) process, or a similar claims resolution process, and are now cooperating through the New York State Holocaust Claims Processing Office (HCPO) process. 

We are concerned that these provisions could turn a cooperative 

process into a confrontational one in which false hopes might be 

raised and lengthy litigation efforts could delay resolution and 

waste precious resources. 

The companies that participated in the ICHEIC process—which 

was sanctioned by state insurance regulators, the World Jewish 

Congress, and the governments of Israel and the United States—

and that are continuing to cooperate through the HCPO process, 

should not be subject to lawsuits by new claimants unless they fail 

to cooperate. 

We commend the chief proponent of this legislation, Representative Ros-Lehtinen of Florida, on her determination to highlight the 

issue of outstanding insurance claims and to encourage the full and 

fair restitution of Holocaust survivors and their families. 

We also thank the Chairman of the Committee on Financial 

Services for his diligence in working with all interested parties to 

forge a greater consensus on an important and sensitive issue. 

SPENCER BACHUS. 

RON PAUL. 

SHELLEY MOORE CAPITO. 

CHRISTOPHER SHAYS. 

Æ 


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