Poolman Applauds Pending Agreement on Terrorism Insurance
Posted on 10/18/2002
FOR IMMEDIATE RELEASE
Contact: Jim Poolman
October 18, 2002
Bismarck, ND - North Dakota Insurance Commissioner Jim Poolman applauded the pending agreement reached with Congress and the President yesterday on federal terrorism insurance legislation.
"Consumers have scored a big victory, and the nation has scored a big victory with this agreement," Poolman said. "This is the new world we live in and we can all rest a little easier knowing that insurance for the protection of property will be available in the face of a terrorist attack."
The agreement reached with the White House yesterday puts a 3-year program in place that will provide, in essence, government reinsurance to insurance companies that would be exposed to major losses with another terrorist attack. Companies would be held responsible for the first $10 billion dollars in losses, and then the federal government would start participation in paying for a portion of the claims.
Earlier this year the North Dakota Insurance Department was forced to exclude terrorism coverage for many commercial policies, and some personal policies. "This agreement will now allow us to go back to those insurance companies and make sure that terrorism is covered in their policies," Poolman said. "The exclusions approved by the department were approved with the understanding that if a bill passed in Congress and was signed by the President, many of those exclusions would expire," he added.
The agreement will also potentially provide a boost to the economy. "Construction jobs were put on hold because they could not get terrorism coverage in commercial policies," Poolman said. "Banks are not willing to loan money when there is a risk of a terrorist attack, and no insurance coverage is available to cover that attack. This legislation will help put people back to work in the construction trades, and will help take another step in moving the economy forward."