CFA urges states to reject ISO's terrorism exclusions.(Gadfly Strikes Again)(Consumer Federation of America, Insurance Services Office)

National Underwriter Property & Casualty-Risk & Benefits Management, May, 2004 by Brostoff, Steven

STATES SHOULD REJECT THE conditional terrorism exclusions recently filed by the Insurance Services Office, the Consumer Federation of America contends. In a letter sent to all state insurance commissioners, J. Robert Hunter, director of insurance for the Washington-based CFA, said insurers have not made a case for the exclusions.

Moreover, he charged, ISO and the insurance industry "appear to be playing politics with this request." He noted that Congress is now determining whether to renew the Terrorism Risk Insurance Act, which provides a federal reinsurance backstop for commercial losses caused by acts of terrorism. Without an extension, TRIA will sunset on Dec. 31, 2005. "By requesting these broad exclusions, ISO and the insurance industry are undoubtedly...

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