Terrorism law puts Treasury Dept. into the insurance regulation business. (Capitol Insights).(Terrorism Risk Insurance Act)

National Underwriter Property & Casualty-Risk & Benefits Management, March, 2003 by Brostoff, Steven

Despite what I think is a sincere desire to leave regulation of insurance to the states, it is hard not to notice that the terrorism insurance bill is forcing the Treasury Department to move closer and closer to developing a type of federal oversight. This emerged most noticeably in the most recent set of guidance that Treasury issued regarding the Terrorism Risk Insurance Program.

The guidance included a request for comments on several issues, one of which really caught my attention. It has to do with establishing financial standards for what are called "federally-approved insurers." These are entities approved by federal agencies to offer property-casualty insurance in connection with maritime, energy or aviation activities, and are not subject to state...

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