The New York Department of Insurance is currently taking no special action to prod insurers who owe on claims for the destruction of the World Trade Center to expedite payments, a department spokesman said today.
His comments followed yesterday's announcement by Rep Anthony Weiner, D-N.Y., that he was demanding that insurers who have delayed payment be severely fined.
Chapin Fay, speaking for the department, said there has been no change in the department's stance on the insurers' delay of payment, adding, however, that State Insurance Superintendent Howard Mills is working on the problem.
Mr. Mills, he said, has spoken directly with the chief executive officers of the insurers in question.
Rep. Weiner held a press conference yesterday in Manhattan in front of Ground Zero, where the WTC's twin towers were destroyed by terrorists Sept. 11, 2001.
Mr. Fay said he was unsure whether Congressman Weiner had contacted the department to relay his concerns directly.
Some insurance companies, Rep. Weiner claimed, have been reaping hundreds of millions in profits from investment money that should have been used to pay claims monies needed for the rebuilding of the trade center.
In total, Rep. Weiner's office estimated insurers have made over $200 million in investment profits, and he called on the state to levy significant fines to induce insurers to pay their claims.
The issue of insurer reluctance to pay claims from destruction of the World Trade Center first surfaced in June after site leaseholder Larry Silverstein made new ownership agreements with public officials for the reconstruction process.
Earlier this month two of the World Trade Center insurers said they had decided the new agreement for rebuilding would not impede their payments to Mr. Silverstein.
Zurich American Insurance Company and Employers Insurance of Wausau have said the new conceptual framework rebuilding agreement between Mr. Silverstein and city and state authorities will not alter their legal obligations under their insurance policies, New York Mayor Michael Bloomberg announced then.
In April, Mr. Silverstein agreed to turn over to the Port Authority of New York and New Jersey some of the insurance proceeds for rebuilding since the agency took on responsibility for building the Freedom Tower and one other building.
Mr. Silverstein warned then that some of the insurers might withhold funds using the new agreement as a pretext for such legal action.
The agreement between Mr. Silverstein and the Port Authority has yet to be finalized, with the insurance question remaining one of the stumbling blocks.
The five remaining insurers who have yet to agree to pay their share are Allianz; Industrial Risk Insurers; Travelers Indemnity, a part of St. Paul Travelers; Royal Indemnity Company, which is part of Royal SunAlliance USA groups; and Gulf Insurance Co., owned by American International Group.
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