State agent associations have similarly been on the case. The Independent Insurance Agents Association of New York, based in Syracuse (www.iiaany.org), put together a “fact-filled electronic kit” for members to help them understand how the new law affects their agencies and clients. The kit also contains links to IIABAs resources on the subject.

The Professional Insurance Agents Association of Connecticut, New Hampshire, New Jersey and New York, based in Glenmont, N.Y. (www.piaonline.org), placed summaries of the law and related bulletins on its Web site, along with links to the U.S. Treasury Department, which will oversee the federal reinsurance program's implementation.

Also on the local PIA site is an article, “Federal Terrorism Backstop Is LawNow What?” authored by Ellen D. Kiehl, assistant executive director of government and industry affairs.

Although the law places “no special responsibilities or duties on agents,” it is important that agents be able to explain to their clients what is happening and what to expect, said IIAANY Chairman John R. Costello, in a statement.

“There are still a lot of unanswered questions,” noted Ms. Kiehl. “We are posting something new every day to our members.” She added that discussions of questions about implementation would probably go on well into the new year.

Agent associations outside of the New York area say they are relying on the national associations to explain what is happening with the terrorism insurance law.

Bill Roof, director of communications for the Independent Insurance Agents of Texas in Austin, said the associations Web site is directing members to IIABAs resources, as well as related statements from the National Association of Insurance Commissioners and other industry sites with information.

Alan Smith, president of the PIA Group of California, Nevada, Arizona and New Mexico, based in Sacramento, Calif., said there has not been much of a call for information from members, who are more concerned with the hard market at the moment. However, he added, the national associations are “doing a good job at getting the information” out to members.

Laura Richter, vice president of communications for the Professional Independent Insurance Agents of Illinois, based in Springfield, said the association has not received many inquiries, but it is keeping agents advised on what is happening and alerting members about the availability of information on industry Web sites, including IIABA's. The association also plans to print a summary of the law in its publication, Insurance Insight.

The Insurance Brokers and Agents of the West, based in Oakland, Calif., took a more active route. The association began holding seminars on terrorism coverage in December through its insurance education division–the Insurance Skills Center–said Nicolas Seperas, head of continuing education for the group. Another session is scheduled for late January in Palm Springs, Calif.

The major thing agents need to do, said Patricia A. Borowski, senior vice president of the National PIA, is to understand how the carriers they represent are interpreting the law and applying it their policyholders. “There are a lot of questions still up in the air,” she noted.

One situation that has arisen in New York, noted Ms. Kiehl, is that a few policyholders have received notices from their carrier (she would not name the company or companies) requesting additional premium for the terrorism coverage the client already has. She said the states insurance department is reviewing this practice.

Ms. Borowski said that agents should pass on information about carrier practices to their associations to better inform the national associations and the Treasury Department about what is happening in the marketplace and enable them to respond.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, January 6, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.