New York State Insurance Superintendent Eric Dinallo has issued a bulletin to insurers advising them to take steps to provide "contract certainty" for coverage agreements, his department announced today.
The new rule, which goes into effect in 12 months, requires firm policy language to be in place within 30 days, the statement said, in order to avoid the kind of protracted claims litigation that followed the attack on the World Trade Center.
"There was no final detailed insurance policy on the World Trade Center before the 9/11 attack, just a broad agreement, and that uncertainty surrounding the nature and terms of the insurance contracts led to both sides spending six years in court and hundreds of millions of dollars in legal fees in a vain effort to resolve the issues," the announcement from his department related.
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