Responding to insurers’ concerns over the future availability of reinsurance coverage for terrorism, Darla L. Lyon, director of South Dakota’s Division of Insurance, announced the department will approve requests by insurers to exclude terrorism in their policies.
In a statement, Lyons said that after careful consideration she “made the decision that these exclusions will be approved if the insurer can provide written proof from their reinsurers that they are not able to accept this risk. The Terrorism Exclusion Endorsement filed by the insurer should mirror the reinsurers exclusion as closely as possible.”
According to BestWire, several states are considering allowing conditional exclusions similar to those approved in South Dakota.
Primary insurers must gain approval in each state they do business in for such exclusions. They have indicated to state regulators that reinsurers that aren’t regulated by the states are already imposing terrorism exclusions on them.
Banks Still Face Legal Claims After $25 Billion Settlement
MF Global Judge to Examine Insurance Payments for Former Executives
Daredevil CEOs May Put Companies at Risk
California Independent Contractor Law May Be Liability for Agents, Brokers
North Carolina Continues Auto Regulation Debate As Rates Stay Same for 2012
Long-time California Lobbyist Looks to 2012 Legislation Affecting Insurance
Mine Safety Chief Seeks to End Complacency Over Safety
Virginia Court Grants Rehearing of Global Warming Claims Case
