Washington–The National Association of Mutual Insurance Companies is telling key Senate members that in the event of a terrorist attack most insurers will be in financial jeopardy should they set too high a threshold for federal support to kick in.
In their efforts to secure some renewal of the Terrorism Risk Insurance Act, NAMIC has advised legislators that an unacceptable level of risk could place four-fifths of property-casualty writers in trouble if an event occurred.
"Without reasonable figures, given the near impossibility of purchasing reinsurance, small companies would be forced to take on an amount of risk that would violate their fiduciary obligation to their policyholders and their responsibilities under state law," said David Winston, NAMIC senior vice president of federal affairs.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
