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Bush to Pass Terrorism Legislation Tomorrow

NEW YORK CITY-According to speakers at a recent event sponsored by Kaye Insurance Associates, President Bush will pass the Terrorism Risk Insurance Act of 2002 tomorrow morning. Once his pen hits the paper, all terrorism insurance exclusions will be null and void, and insurance companies must begin immediately offering the coverage to clients.

By Diana M. Rodriguez | Updated on November 25, 2002

NEW YORK CITY-President Bush is reportedly passing the much talked about Terrorism Risk Insurance Act of 2002 tomorrow at 9:45 a.m., effectively voiding all prior policies excluding terrorism coverage. Once the bill is inked, insurance companies must immediately begin offering the coverage. They officially have 90 days to send written communication to all clients explaining the new premiums.

Late last week, Joel Wood, senior VP of government affairs for the Council of Insurance Agents and Brokers, joined Warren Azano, VP of government affairs for insurance carrier the Hartford Financial Services Group Inc., on a panel discussing the legislation. The overall consensus of panelists at the event, which was sponsored by Kaye Insurance Associates, was that the immediate transition to the new terrorism insurance policies would prove to be “chaotic” at best.

“This bill will have immediate impact,” said Wood, adding that insurance companies must instantly begin calculating new premiums for all policies that previously excluding terrorism coverage. Companies have 90 days to inform all clients of their new premiums; at which time, the client must accept or reject the new rates within 30 days upon receipt of the statement.

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