The Risk and Insurance Management Society urged the members of the New York State Assembly Insurance Committee not to permit terrorist exclusions at the state level, but to work with insurance industry leaders to assure the adoption of Federal legislation before the end of the year.
In a written statement Roberta Nebel, RIMS New York Chapter member and Sr.VP/Director of Risk at Lehman Bros., told the Committee’s sixth session, devoted to an examination of the September 11 attacks on the World Trade Center, that state legislators and insurance regulators should not permit the application of terrorism exclusions.
“The appropriate venue for a mechanism to eases this crisis is at the federal level.” Nebel stated. “We must maintain pressure on Congress to act before the end of the year.” She urged the committee to “help keep attention focused on this critical national issue.”
RIMS’ statement indicated that member companies were already experiencing “stratospheric property/casualty insurance premium rates for significantly less coverage,” and that most reinsurers were refusing to include terrorism coverage in their policies.
Nebel strongly agreed with other industry leaders in pointing out that 70 percent of all reinsurance policies will become due for renewal next month, and that without adequate insurance and reinsurance coverage many sectors of the already weakened U.S. economy will be further impacted, as agreements requiring insurance coverage cannot be concluded or implemented.
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