Terrorism insurance coalition formed.A new coalition of industry and business leaders has been formed to push for passage of a terrorism insurance Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities. It is considered to be a difficult product for insurance companies, as the odds of terrorist attacks are very plan on Capitol Hill. The group, called the Coalition to Insure Against Terrorism, represents significant policyholders throughout the transportation, real estate, manufacturing, construction, entertainment and retail sectors. "Risks of terrorism, like risks of war, are a government responsibility," said Deborah Beck, executive vice president of the Real Estate Board of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . "It is the responsibility of government to act now to protect its property owning citizens, be they private owners, individual and institutional investors, or religious, educational or medical facility owners." In addition to REBNY REBNY Real Estate Board of New York , other groups that are participating in the coalition the Building Owners and Managers Association This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Institute of Real Estate Management This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , International Council of Shopping Centers The International Council of Shopping Centers (ICSC) is an international trade association of the shopping center industry. The organization, founded in 1957, has 65,000 members worldwide, which include shopping center owners, developers and managers, as well as other individuals, and Real Estate Roundtable. "Gaps in insurance coverage against acts of terrorism weaken our economy and post a very real threat to our homeland security," said Martin DePoy, vice president of government relations at the National Association of Real Estate Investment Trusts and a spokesman for the new coalition. The issue first came to light after Sept. 11, when reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. agencies said they would discontinue providing coverage for terrorism insurance. About 70% of the policies impacted by the decision were set to expire Jan. 1. The rest of the policies have expiration dates of April 1 and July 1. Last fall the House of Representatives passed a terrorism insurance bill but Congress convened before the Senate considered a similar measure. Senators Paul S. Sarbanes (D-Md), Phil Gramm (R-Tex), Chris Dodd (D-Conn), and Mike Enzi (R-Wyo) reached agreement with the administration in the 2001 congressional session on a plan that would ensure the continued availability and affordability of terrorism risk insurance. This plan is now under consideration in 2002. The coalition is planning to ask members of Congress to work together in the interests of policyholders and "craft a plan that will give insurers the means to provide comprehensive coverage." "At this critical time in the nation's history, a dysfunctional insurance system could both jeopardize our economic recovery and weaken our homeland security," DePoy said. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the U.S. Securities and Exchange Commission is considering whether to require businesses left without commercial terrorism-risk insurance after the Sept. 11 attacks to disclose the loss to investors as a material risk factor, according to a Reuters report. "Clearly in the aftermath of 9/11, it's an issue we have to look at," SEC chairman Harvey Pitt told reporter recently. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion