250 Insurers Turn Out For Terrorism Bill Details

NU Online News Service, Dec. 13, 4:13 p.m. EST?A meeting of two trade groups to discuss compliance with provisions of the new federal terrorism insurance law drew representatives from more than 250 insurers yesterday, the organizations said.

The session was presented by the National Association of Independent Insurers, Des Plaines, Ill. and Alliance of American Insurers, Downers Grove, Ill.

"It is obvious from the number of participants in the meeting that insurers are very interested in effective and efficient implementation of the Terrorism Risk Insurance Act," said Donald Griffin assistant vice president of Business and Personal Lines for NAII.

Mr. Griffin said his group is encouraged by swift actions being taken by the U.S. Treasury Department, the National Association of Insurance Commissioners and state insurance departments to respond to the questions and implementation issues that have developed.

"While the NAIC has made admirable progress in developing a model for insurers to follow, companies continue to face many questions," said Greg Heidrich, senior vice president, secretary and treasurer of the Alliance.

Mr. Heidrich said there is a "need for strong coordination among all the states in their approach to this important legislation. This meeting shows our commitment to working with all the state regulators and the Treasury Department to ensure a smooth, and hopefully, uniform implementation."

The Treasury Department recently offered interim guidance for the industry on how to begin implementing the notice and disclosure elements of the Act. The NAIC has also issued a model bulletin that may help create uniformity among the states regarding implementation issues.

The meeting featured a presentation by Dale Miller and Mike Trier of Lord, Bissell and Brook regarding the mandates, administration and other issues related to implementing the act.

Domenick Yezzi, Jr. of the Jersey City, N.J.-based Insurance Services Office provided an explanation of the ISO commercial forms filed and upcoming rate filings. Mona Carter of NCCI presented an overview of the NCCI's activities in the areas of terrorism premium charges for voluntary and assigned risk business, the NAIC disclosure notices, changes to the workers compensation policy, statistical reporting and residual market special requirements.

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250 Insurers Turn Out For Terrorism Bill Details

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