New York Governor Eliot Spitzer apparently knocked some heads together and finally convinced seven insurers to cough up $2 billion to settle all remaining property insurance claims over the destruction of the World Trade Center by terrorists on Sept. 11, 2001. It's quite an achievement, and it's terrific for the industry to bring this sad episode to a close once and for all. Read on for my comments, and for full coverage of the settlement details, click here.
At first, the industry was praised for not invoking the war exclusion to deny WTC claims (although I don't think they would have had a leg to stand on had they tried).
However, the good feelings insurers generated with their early support degenerated into a total mess when it became clear that many policies were not completed until after coverage took effect and the worst-case scenario happened on 9/11.
Then the industry tried to limit damages by insisting the attack was one event, not two (even though two separate planes hit two separate buildings at two different times).
Then, many insurers just dug in their heels while lawsuits and negotiations dragged on, prompting organized protests and loads of bad publicity.
Gov. Spitzer's office said that beginning in late March, Insurance Superintendent Eric Dinallo–who was a prosecutor under Mr. Spitzer when he was attorney general, as well as serving more recently as general counsel at Willis–”held dozens of meetings with Silverstein Properties and the insurance companies.”
Then, the governor's office said, “this month, when several outstanding issues remained unresolved, Gov. Spitzer became personally engaged in the negotiations.”
That's when the head-knocking began. You don't want to mess with Eliot Spitzer.
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.
