New York State Insurance Department Superintendent Gregory V. Serio has reportedly rejected requests from the insurance community and the NAIC to permit the endorsement of broad “terrorist exclusion” provisions in commercial real estate policies, which would have limited losses to $25 million.
According to an AP report NYSID spokeswoman Joanna Rose indicated that the exclusion would have covered almost “every building in New York,” and that Serio had found this overly broad, and had no intention of approving it. She indicated that the Department was still studying some 50 other exclusion proposals that were more narrowly drawn, and did not rule out the possibility that some exclusion could be permitted under appropriate circumstances.
New York City may in fact be a special case. The AP report sited NAIC spokeswoman Kris Welschmeyer as saying that so far 36 states and territories have supported the recommendation, but that she was unsure if any of those states had high-priced properties that would be affected by the measure as much as commercial buildings in New York City.
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