Background

The Holocaust Insurance Claims Accountability Act (HR 1746), introduced by Representative Ileana Ros-Lehtinen (R-FL), would require insurance companies who do business in the United States to disclose Holocaust-era insurance policies. The bill would also establish a federal cause of action for claims arising from these policies. Introduced on March 28, this legislation was referred to the House Committees on Foreign Affairs, Financial Services, and Oversight and Government Reform. On Oct. 23, the House Foreign Affairs Committee’s Subcommittee on Europe reviewed this legislation and unanimously reported it out of subcommittee. The House Financial Services and Oversight and Government Reform committees have not yet considered this legislation.

The issues arising from HR 1746 are very complex, and there are diverse perspectives within the Jewish community on this legislation. Ultimately, this bill would reopen the insurance claims adjudicated by the International Commission on Holocaust-Era Insurance Claims (ICHEIC). ICHEIC was formed in 1998 to review and settle outstanding insurance claims by Holocaust survivors and their heirs. This process was completed in early 2007. ICHEIC was governed by a Memorandum of Understanding (MOU) signed by U.S. insurance regulators, several European insurance companies, World Jewish Restitution Organization, the Claims Conference, and the State of Israel. ICHEIC was chaired by former Secretary of State Lawrence Eagleburger and included representatives from major stakeholders, including U.S. insurance commissioners, Jewish organizations, and insurance companies.

ICHEIC was the most recent mechanism established to provide restitution for Holocaust victims. It was hoped that ICHEIC would be the final process for insurance claims and bring closure for both Holocaust victims and European insurance companies. In exchange for participating in the ICHEIC process, European insurance companies were offered “legal peace.” The Austrian and German Governments signed Executive Agreements with the United States that designated the ICHEIC to resolve all remaining Holocaust-era claims against German and Austrian insurance companies and their subsidiaries.

ICHEIC established an elaborate process to reach out to survivors and their heirs, evaluate outstanding claims with limited documentation, and provide an appeals and adjudication process for disputed claims. ICHEIC received claims for four years. The process was closed on March 31, 2004. All claims were processed and decisions were made on all the ICHEIC claims by June 30, 2006.

Through the ICHEIC process, $306 million were distributed to 48,000 Holocaust survivors and their heirs. Additionally, $169 million were committed for humanitarian programs to benefit survivors. According to the final ICHEIC report, “[i]neligible claims were those listing the former Soviet Union (FSU) as the place where the policy in questions was likely to be issued, hoax claims, or claims on compensation not related to insurance.” Despite the conclusion of the ICHEIC process, many insurance companies have committed to continue processing Holocaust-era claims from survivors and their heirs.

HR 1746 would reopen the issues and claims ostensibly resolved by the ICHEIC process. This legislation would mandate that all insurance companies who do business within the United States to disclose Holocaust-era policies to the Secretary of Commerce. The Secretary of Commerce would then provide this information to the National Archives, which would establish the Holocaust Insurance Registry. Further, this bill would provide for a federal cause of action for treble damages and attorneys’ fees for any claim against an insurer or related company.

Proponents of HR 1746 claim than there are thousands of Holocaust-era policies that are outstanding. They argue that this type of litigation is the only way to insure those Holocaust survivors and their heirs, particularly those whose claims were denied during the ICHEIC process or did not file ICHEIC claims because they felt they lacked documentation, have proper recourse. Most of the claims denied are those from Eastern Europe.

Opponents argue that ICHEIC has substantially accomplished its intended function and that re-engaging through this legislation complicates delicate relationships and negotiations.

Current Status

HR 1746 was introduced by Representative Ileana Ros-Lehtinen on March 28. This legislation currently has 37 co-sponsors. This legislation was referred to the House Committees on Foreign Relations, Financial Services, and Government Reform and Oversight.

On Oct. 3, the House of Representatives Foreign Affairs Committee’s Subcommittee on Europe held a hearing on HR 1746. It was reported to the full Foreign Affairs Committee by unanimous consent. Europe Subcommittee Chairman Robert Wexler (D-FL) and Foreign Affairs Committee Chairman Tom Lantos (D-CA) are both cosponsors of HR 1746, and Representative Ileana Ros-Lehtinen, the ranking member on the Foreign Affairs Committee, is the lead sponsor of this bill.

During the Europe Subcommittee hearing, several issues were raised including the thoroughness of the ICHEIC process and the potential impact of the legislation on German-American relations. The German Government is concerned about the legislation, and German Ambassador Klaus Scharioth expressed his country’s concerns to Chairman Lantos.

The House Financial Services Committee is expected to have a hearing on the legislation on Tuesday, Dec. 11.

The House Government Reform and Oversight Committee has not scheduled a hearing or mark-up session on HR 1746. However, House Government and Oversight Committee Chairman Henry Waxman (D-CA) is a cosponsor of this legislation.