The New York Insurance Department will take "all steps necessary" to make sure that carriers pay what they owe towards the rebuilding of the World Trade Center, a spokesman for the agency said.

His comment came in the wake of demands by New York Republican Gov. George Pataki and U.S. Sen. Charles Schumer, D-N.Y., that the department go after seven insurers who are balking at paying.

Sen. Schumer, in a letter, called on Insurance Superintendent Howard Mills to take "immediate aggressive and decisive action against these unjustifiably intransigent insurance firms."

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