Trade Center Insurers Eyed By NY Insurance Dept.

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."

"A full-fledged market conduct examination by the State of New York would apply another level of pressure in order to compel these insurers to meet their commitments," he wrote.

On June 26, the Port Authority of New York and New Jersey, which owns the WTC site, filed suit against seven carriers they accused of using an April agreement transferring responsibilities for rebuilding at the site from developer Larry Silverstein to the PA as a pretext for not paying the claims.

Mr. Silverstein joined in the suit against Allianz, Industrial Risk Insurers, Travelers Indemnity Company, Royal Indemnity Company, Gulf Insurance Company, Zurich American Insurance Company Co. and Employers Insurance Company of Wausau.

"At the request of Governor Pataki, the New York State Insurance Department has been looking into this matter to ensure nothing stands in the way of the rebuilding of the World Trade Center site." said Mike Barry, public affairs director for the agency.

"We know how critical the rebuilding process is to our city, state and nation, and we will take all steps necessary to ensure that the insurers uphold their legal obligations in this matter," he continued.

Mr. Barry did not say if a market conduct exam has been commenced against any of the insurers.