The International Commission on Holocaust Era Insurance Claims (ICHEIC)

In 1997, 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. ICHEIC's claims process opened in 2000 and closed in March 2007. In total, it facilitated the payment of just over $300 million to 47,353 of about 90,000 claimants. Administration Policy on ICHEIC

U.S. Administrations, ICHEIC was broadly criticized, including by Members of Congress. ICHEIC supporters generally acknowledge that the claims process got off to a slow and problematic start, but argue that initial missteps were addressed and that the claims process was ultimately fair and comprehensive. "ICHEIC is not an adequate alternative forum for the litigation of plaintiffs' claims," the court explained, pointing out that despite ICHEIC's inclusion of the State of Israel and "certain U.S. state insurance regulators," the Commission remained, at bottom, a "privately funded, non-profit entity ... created ... among six European insurance companies ... with certain nongovernmental Jewish organizations.... "
The court was persuaded neither by the fact that ICHEIC was assumed to be a recognized agent for purposes of carrying out the obligations assumed in the German Foundation Agreement, nor by the presumption of both the German government and the various German insurance companies against whom there were Holocaust-era-related claims pending in U.S. courts that the conclusion of the Foundation Agreement would bring "legal closure" to those claims. Congressional Concerns and Proposed Legislation

Since the late 1990s, Members of Congress have taken a variety of steps seeking to ensure that Holocaust survivors and their heirs receive fair compensation for unpaid insurance policies. A series of hearings before the House Committee on Government Reform between 2001 and 2003 focused specifically on ICHEIC and on proposed legislation intended to create alternative and more effective means for Holocaust survivors and their heirs to resolve unpaid insurance claims. None of these bills was enacted, and each was opposed by the Administration, which continued to consider ICHEIC the exclusive vehicle for resolving Holocaust-era insurance claims. ICHEIC's closure, and growing concern about the well-being of survivors of an average age of over 80 years old, have reignited congressional interest in resolving outstanding Holocaust-era insurance claims. 890) and the Restoration of Legal Rights for Claimants under Holocaust-Era Insurance Policies Act of 2011 (S. 466)

On March 2, 2011, Representative Ros-Lehtinen introduced H.R. Companion legislation was introduced in the Senate, by Senator Bill Nelson, on the same day as H.R. In general, those supportive of the proposed legislation argue that both the ICHEIC process and previous agreements between the United States and European governments failed to compensate a significant number of Holocaust survivors and/or their heirs and beneficiaries. Opponents of the proposed legislation often argue that by effectively reversing past commitments made by the U.S. government—specifically, the granting of legal peace to German companies—the bills could damage future cooperation with European governments on other Holocaust compensation and restitution issues. Critics also argue that given the legal and historical complexities of substantiating the existence and value of Holocaust-era insurance policies, it is unlikely that claims would be satisfactorily settled in U.S. courts.
In November 1998, U.S. insurance regulators, six European insurers, international Jewish organizations, and the State of Israel agreed to establish the International Commission on Holocaust Era Insurance Claims (ICHEIC). ICHEIC was tasked with identifying policyholders and administering payment of hundreds of thousands of Holocaust-era insurance policies alleged never to have been honored by European insurance companies. It ended its claims process in March 2007, having facilitated the payment of just over $300 million to 47,353 claimants. An additional $190 million was allocated to a "humanitarian fund" for Holocaust survivors and Holocaust education and remembrance.
Throughout its existence, ICHEIC was criticized, including by some Members of Congress, for delays in its claims process, for conducting its activities with a lack of transparency, and for allegedly honoring an inadequate number of claims. Although they acknowledge initial delays in the claims process, ICHEIC supporters—among them successive U.S. Administrations and European governments—argue that the process was fair and comprehensive, especially given the unprecedented legal and historical complexities of the task.
Members of Congress have shown a long-standing interest in seeking to obtain compensation for Holocaust survivors and their heirs for unpaid insurance policies. Hearings before the House Committee on Government Reform between 2001 and 2003 exposed broad criticism of ICHEIC, and legislation proposed in the 107th-111th Congresses sought to provide survivors alternative legal mechanisms to pursue claims. These proposals were never enacted and were opposed by U.S. Administrations, which considered ICHEIC the exclusive vehicle for resolving Holocaust-era insurance claims.
ICHEIC's closure, and growing concern about the well-being of aging survivors—now predominantly over 80 years old—have reignited congressional interest in Holocaust-era insurance and other compensation issues. In March 2011, Representative Ileana Ros-Lehtinen and Senator Bill Nelson introduced companion legislation in the House and the Senate (H.R. 890 and S. 466) that would affirm Holocaust survivors' and their heirs' right to pursue claims against European insurance companies in U.S. courts and would prohibit executive agreements reached by the federal government from preempting state laws that impose disclosure requirements on European insurers. Critics of the proposed legislation argue that by effectively reversing past commitments made by the U.S. government, the bills could damage future cooperation with European governments on other Holocaust compensation and restitution issues. Furthermore, they contend that the legislation would enable costly, but likely fruitless, litigation.
This report aims to inform consideration of H.R. 890 and S. 466 and possible alternatives by providing: background on Holocaust-era compensation and restitution issues; an overview of ICHEIC, including criticism and support of its claims process and Administration policy on ICHEIC; and an overview of litigation on Holocaust-era insurance claims and the proposed legislation.