Connecticut Gov. John Rowland (R) has signed into law important legislation to create a terrorism exclusion in the state’s Standard Fire Policy (SFP).
The American Insurance Association (AIA), among other industr groups, advocated for the legislation.
“At a time when the headlines of every major newspaper warn us about the potential of further terrorist attacks in the U.S., this change will help to stabilize the insurance marketplace by removing an unpredictable and potentially infinite risk in the form of a terrorist attack,” said Paul Moran, AIA vice president, northeast region.
AIA worked closely with the Insurance Association of Connecticut, which led the effort to pass this legislation. Louisiana, Michigan, Minnesota, Nebraska, New Hampshire, Oklahoma and Virginia have already provided some form of terrorism exclusion to the SFPs in their states.
Without the exclusion, Connecticut’s Standard Fire Policy would require insurers to pay for losses from a fire following a terrorist act, even if the policyholder had rejected the terrorism coverage available under the federal Terrorism Risk Insurance Act. The new law is Public Act 04-140, and was signed by the governor on May 21.
Was this article valuable?
Here are more articles you may enjoy.