The hearing was announced yesterday by Assembly Speaker Sheldon Silver, D-Manhattan and Alexander "Pete" Grannis, D-Manhattan, who heads the Assembly Insurance Committee.

Ms. Olli said it will be third hearing of its kind to examine the New York City insurance marketplace in the wake of the attack on the World Trade Center in lower Manhattan.

Mr. Silver's announcement noted that previous hearings had uncovered "serious problems" in the commercial insurance market in the aftermath of the terrorist attacks.

At that time, Mr. Silver noted, residents and businesses throughout lower Manhattan had difficulty securing all kinds of insurance coverage and there was testimony concerning "huge jumps in premiums and the loss of access to meaningful coverage."

Mr. Silver said some insurers had pulled out of the area altogether, while others "dramatically increased premiums and many customers struggled to settle outstanding claims."

Mr. Grannis said the hope of the hearing was to determine if the new Terrorism Risk Insurance Act "is living up to its high expectations."

Under the TRIA insurers are required to offer coverage for future terrorism losses and for the federal government to reimburse insurers for a portion of any losses.

The assemblymen said that the hearing was expected to identify any statutory or regulatory changes necessary to improve the TRIA's effectiveness in New York.

Ms. Olli said that New York Insurance Superintendent Gregory V. Serio is expected as a witness.