Terrorism insurance / Miguel H. Palacios, editor.

Format:

Book

Contributor:

Palacios, Miguel H.

Series:

Terrorism, hot spots and conflict-related issues.

Terrorism, hot spots and conflict-related issues series

Language:

English

Subjects (All):

Terrorism insurance--United States.

Terrorism insurance.

Risk (Insurance)--United States.

Risk (Insurance).

Physical Description:

1 online resource (147 p.)

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, Inc., c2009.

Language Note:

English

Summary:

This book looks at the issues involved with terrorism insurance and includes a side-by-side comparison of the previous law, the two House TRIA-extension bills, and the Senate bill that was ultimately signed by the President. Prior to the September 11, 2001 terrorist attacks, insurance covering terrorism losses was normally included in general insurance policies without additional cost to the policyholders. Following the attacks, both primary insurers and reinsurers pulled back from offering terrorism coverage. Congress responded to the disruption in the insurance market by passing the Terrorism Risk Insurance Act (TRIA) of 2002. TRIA created a temporary program to calm the insurance markets through a government backstop for terrorism losses. In addition to the continuing debate about TRIA, this book also discusses commonly accepted principles of insurability and whether nuclear, biological, chemical, or radiological (NBCR) risks are measurable and predictable and whether private insurers currently are exposed to NBCR risks and the challenges they face in pricing

Contents:

Intro

TERRORISM INSURANCE

CONTENTS

PREFACE

Chapter 1 TERRORISM RISK INSURANCE LEGISLATION IN 2007: ISSUE SUMMARY AND SIDE-BY-SIDE

SUMMARY

INTRODUCTION

LEGISLATIVE ACTION

Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA, H.R. 2761)

Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA, S. 2285)

Terrorism Risk Insurance Program Reauthorization Act of 2007 (H.R. 4299)

Final Passage and Enactment of TRIA-Extension Legislation

END NOTES

Chapter 2 TERRORISM RISK INSURANCE: ISSUE ANALYSIS AND LEGISLATION

BACKGROUND

Insurability of Terrorism Risk

International Experience with Terrorism Risk Insurance

Previous U.S. Experience with "Uninsurable" Risks

The Terrorism Insurance Market and the Economy: Post-9/11 and Pre-TRIA

INITIAL CONGRESSIONAL ACTION

TRIA's Original Goals and Substance

POST-TRIA ACTIVITY

Executive Branch

Terrorism Insurance Market after TRIA

Congressional Action in the 108th and 109th Congresses

CURRENT CONGRESSIONAL ACTION

Terrorism Risk Insurance Revision and Extension Act of 2007 (TRIREA)

Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA)

Chapter 3 TERRORISM INSURANCE: STATUS OF COVERAGE AVAILABILITY FOR ATTACKS INVOLVING NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL WEAPONS

WHY GAO DID THIS STUDY

WHAT GAO FOUND

RESULTS IN BRIEF

Variation in Potential Weapons involving NBCR Materials and Examples of Prior Attacks

Overview of State Regulation of Insurance and Workers' Compensation Insurance Providers

MOST COMMERCIAL PROPERTY/CASUALTY INSURERS AND REINSURERS WE CONTACTED EXCLUDE OR LIMIT COVERAGE FOR NBCR RISKS, WHILE WORKERS' COMPENSATION, LIFE, AND HEALTH INSURERS GENERALLY ARE REQUIRED TO OFFER SUCH COVERAGE.

NBCR Coverage Generally is Unavailable in Commercial Property/Casualty Insurance and Reinsurance Policies, but the Exclusions Used to Limit Coverage could be Challenged in Court

Property/Casualty Policyholders Report That NBCR Coverage Generally is Unavailable or Available at Prices They View as Unaffordable

Workers' Compensation, Life, and Health Insurers Generally Cover NBCR Risks Due to State Requirements

POTENTIAL FINANCIAL CONSEQUENCES OF NBCR ATTACKS LIMIT PROPERTY/CASUALTY INSURERS' WILLINGNESS TO OFFER COVERAGE

INSURERS FOR OTHER LINES OF INSURANCE REPORT LIMITED CAPACITY TO MANAGE ASSOCIATED RISKS

Commercial Property/Casualty Insurers and Reinsurers Are Concerned about the Uncertainty and Potential Enormity of Losses from NBCR Attacks

Private Workers' Compensation Insurers Have Somewhat Greater Flexibility to Manage NBCR Risks by Choosing Which Employers to Offer Coverage, but Private Insurers and State Funds Face Other Risk Management Challenges

Group Life and Health Insurers May Face Challenges in Managing NBCR Risks

PROPOSALS TO INCREASE COVERAGE FOR NBCR ATTACKS IN THE PROPERTY/CASUALTY MARKET HAVE ADVANTAGES AND DISADVANTAGES

Proposal 1: Amend TRIA to Require Insurers to Make NBCR Coverage Available with the Federal Government Assuming Greater Financial Responsibility for Potential Losses

Proposal 2: Federal Government Completely Insures Losses for Terrorist Attacks involving NBCR Materials, with Insurers Administering the Program

AGENCY COMMENTS AND OUR EVALUATION

APPENDIX I: OBJECTIVES, SCOPE, AND METHODOLOGY

APPENDIX II: COMMENTS FROM THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS

APPENDIX II. (Continued)

RELATED GAO PRODUCTS

GAO'S MISSION

END NOTES.

Chapter 4 TERRORISM INSURANCE: STATUS OF EFFORTS BY POLICYHOLDERS TO OBTAIN COVERAGE

TERRORISM INSURANCE GENERALLY IS AVAILABLE NATIONWIDE, ALTHOUGH SOME POLICYHOLDERS HAD TO TAKE ADDITIONAL STEPS TO OBTAIN COVERAGE

Terrorism Insurance Generally is Available Nationwide at Rates Viewed as Affordable Largely Due to the TRIA Program and the Soft Insurance Market

Some Policyholders in Major Cities Have Faced Initial Challenges in Obtaining Desired Terrorism Coverage at Rates Viewed as Favorable

To Obtain Full Terrorism Coverage, Policyholders May Add Additional Carriers to Existing Insurance Programs, Purchase Terrorism-only Policies, or Self-Insure

INSURER AND REINSURER EFFORTS TO MITIGATE THEIR RISKS APPEARED TO BE WHY CERTAIN POLICYHOLDERS FACED INITIAL CHALLENGES IN OBTAINING TERRORISM INSURANCE COVERAGE

Insurers' Concerns about Amounts of Future Terrorism Losses Influence Their Willingness to Provide Coverage, Affecting Availability and Price in Certain Cities

Availability of Reinsurance Also Can Affect Insurers' Willingness to Provide Terrorism Coverage

Views of Rating Agencies Also May Influence the Availability of Terrorism Insurance for Some Policyholders in Areas Viewed as at High Risk of Attack

VARIOUS PROPOSALS TO INCREASE THE AVAILABILITY AND AFFORDABILITY OF TERRORISM INSURANCE COVERAGE HAVE BOTH ADVANTAGES AND DISADVANTAGES

Option 1: Lowering Insurers' TRIA Deductibles following Large Terrorist Attacks

Option 2: Permitting Insurers to Establish Tax-Deductible Reserves for Future Terrorism Losses

Option 3: Forming a Group of Insurance Companies to Pool Assets for Terrorism Risks

Option 4: Facilitating the Issuance of Onshore Catastrophe Bonds through Revisions to the Federal Tax Code.

Option 5: Revising Certain State Regulations and Insurance Coverage Requirements

AGENCY COMMENTS

Chapter 5 TERRORISM INSURANCE: MEASURING AND PREDICTING LOSSES FROM UNCONVENTIONAL WEAPONS IS DIFFICULT, BUT SOME INDUSTRY EXPOSURE EXISTS

State Regulation of Insurance Companies

NBCR Weapons Represent Many Methods of Attack

The Terrorism Risk Insurance Act Program

APPLYING COMMON PRINCIPLES FOR ASSESSING INSURABILITY PRESENTS CHALLENGES IN MEASURING AND PREDICTING NBCR RISKS

INSURERS' EXPOSURE TO NBCR RISKS VARIES WIDELY BY LINE OF INSURANCE, AND INSURERS OFFERING COVERAGE FACE CHALLENGES IN PRICING

Relatively Little NBCR Coverage Available in Property/Casualty Market Because Most Insurers Remain Unwilling to Cover Risks

Although Property/Casualty Insurers Remove Coverage for NBCR Events through Exclusions, They Could Be Challenged

Demand for NBCR Coverage in Property/Casualty Market Is Difficult to Determine

Insurers in Workers' Compensation, Life, and Health Generally Cover NBCR Risks, but Prices May Not Take Account of Potential Losses

Workers' Compensation Insurance Generally Covers All Perils, Including NBCR Risks, but Pricing Challenges Exist

According to Life Insurers, They Generally Cannot Exclude Terrorism Coverage Including NBCR Risks

According to Health Insurers, They Face Unique Challenges in Determining Exposure to NBCR Risks

Principles of Insurability and Assessing Whether NBCR Risks Are Measurable and Predictable

Assessing Exposure to NBCR Risks

CHAPTER SOURCES

INDEX

Blank Page.

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

Description based on print version record.

ISBN:

1-61728-591-9

OCLC:

923664644