Regulators and industry representatives will attempt to refine a catastrophe plan at the National Association of Insurance Commissioners summer meeting starting today with sharp divisions remaining over several aspects, according to an industry lobbyist.
"We continue to be concerned with the decision by the chair of the Working Group to, essentially, ignore a year's worth of work regarding the National Catastrophe Plan document," said Don Griffin, director of personal lines for the Property Casualty Insurance Association of America.
At the spring meeting earlier this year, members of the Catastrophe Insurance Working Group attempted to reintroduce a number of elements some insurance interests view as an anathema. It had appeared that those items were permanently defeated in previous sessions.
According to Mr. Griffin, among the most controversial elements reintroduced was the all-perils policy in which insurers would eventually cover both wind and flood loss in a catastrophe policy.
In addition, a checklist that agents have to use in selling property coverage was also put back on the agenda, which concerned industry representatives that argue such a format would invite lawsuits if it was not followed correctly.
Mr. Griffin also said there could be further discussion of a Utah Catastrophe Plan that includes the cost of mandatory insurance in state taxes.
The San Francisco meeting concludes Monday night.
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