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Events of 9/11 disturbed more than our
collective sense of national security. They
also disturbed the availability of insurance
coverages in many areas of the country, particularly
those perceived to have the greatest chance
of future terrorist attacks.
If you
live in Washington, D.C., New York City,
San Francisco, or Chicago, congratulations — maybe.
According to plans filed by the Insurance
Services Office (ISO) under the Terrorism
Risk Insurance Act of 2002, you live in
one of the three areas most likely to attract
terrorists. And, under ISO’s suggested
rating plans, you’ll be paying the
highest price for terrorism coverage.
Currently ISO proposes three terrorism
rate tiers,
subject to review and modification by state
insurance regulators. The preceding cities
are in Tier One.
Tier Two sites are Los Angeles,
Houston, Boston, Seattle, and Philadelphia.
All other parts of the U.S. are in Tier
Three. Actual rates from insurance companies
might
vary considerably. For example, the
largest carriers may file their own rate
factors
independent of the ISO recommendations.
Regulators and insurers are also working
together to
develop specifics on coverage amounts,
provisions, and underwriting criteria.
For
the latest
developments in this evolving process,
our risk management professionals are here
to
help. Contact
Us for a convenient time to review your
situation and needs. |
