250 Insurers Turn Out For Terrorism Bill Details

NU Online News Service, Dec. 13, 4:13 p.m.EST?A meeting of two trade groups to discuss compliancewith provisions of the new federal terrorism insurance law drewrepresentatives from more than 250 insurers yesterday, theorganizations said.

The session was presented by the National Association ofIndependent Insurers, Des Plaines, Ill. and Alliance of AmericanInsurers, Downers Grove, Ill.

"It is obvious from the number of participants in the meetingthat insurers are very interested in effective and efficientimplementation of the Terrorism Risk Insurance Act," said DonaldGriffin assistant vice president of Business and Personal Lines forNAII.

Mr. Griffin said his group is encouraged by swift actions beingtaken by the U.S. Treasury Department, the National Association ofInsurance Commissioners and state insurance departments to respondto the questions and implementation issues that have developed.

"While the NAIC has made admirable progress in developing amodel for insurers to follow, companies continue to face manyquestions," said Greg Heidrich, senior vice president, secretaryand treasurer of the Alliance.

Mr. Heidrich said there is a "need for strong coordination amongall the states in their approach to this important legislation.This meeting shows our commitment to working with all the stateregulators and the Treasury Department to ensure a smooth, andhopefully, uniform implementation."

The Treasury Department recently offered interim guidance forthe industry on how to begin implementing the notice and disclosureelements of the Act. The NAIC has also issued a model bulletin thatmay help create uniformity among the states regardingimplementation issues.

The meeting featured a presentation by Dale Miller and MikeTrier of Lord, Bissell and Brook regarding the mandates,administration and other issues related to implementing theact.

Domenick Yezzi, Jr. of the Jersey City, N.J.-based InsuranceServices Office provided an explanation of the ISO commercial formsfiled and upcoming rate filings. Mona Carter of NCCI presented anoverview of the NCCI's activities in the areas of terrorism premiumcharges for voluntary and assigned risk business, the NAICdisclosure notices, changes to the workers compensation policy,statistical reporting and residual market special requirements.