NAIC Meets In Washington To Discuss Sept 11 Aftermath

Six weeks following the attacks on New York and Washington, insurance companies and regulators are still working on a plan to make sure future terrorist strikes are covered. According to a report in the South Florida Sun-Sentinel, while the administration is encouraging a plan that places an increasing percentage of the financial responsibility for paying claims on the insurance companies, the industry wants an additional security net. Both proposals were discussed Oct. 22 at the National Association of Insurance Commissioners meeting in Washington, D.C. The latest White House proposal calls for the industry to pay 20 percent of the first $20 billion in losses from terrorist attacks in 2002. The federal government would pick up the other 80 percent.