Schumer Reset Bill Is Consistent with PCI Position
A bill introduced by Senator Charles Schumer (D-N.Y.) to temporarily reset deductibles following large terrorism events, is consistent with the position the Property Casualty Insurers Association of America (PCI) has taken on this issue.
“PCI has supported a reset provision because we believe it will provide much-needed assistance to areas previously impacted by significant terrorist attacks,” said David A. Sampson, PCI’s president and CEO. “Unfortunately, future terrorist strikes on our soil are likely to happen. If two such events were to occur in a short timeframe, the insurance market would be called upon to respond to a second major act of terrorism before the previous incident’s losses have been paid and before the market has completely rebounded. This could cripple the market. A reset provision prevents this problem.
“Additionally, resetting the program deductibles will help stabilize the market and encourage insurers to continue making terrorism coverage available in the future without fear of insolvency. This also will help commercial insurance consumers in areas previously attacked, or perceived to be vulnerable, to have access to terrorism insurance coverage.
“We are very pleased that a strong, long-term terrorism risk insurance bill passed Congress and received President Bush’s signature last year. We also appreciate Senator Schumer’s hard work and leadership on this important issue. The reset provision will undergo further study this year, and we look forward to participating in these ongoing discussions.”
Source: Source: PCI Press Release | Published on February 13, 2008
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