AMR Corp. Notes Insurers Canceling Coverage for Claims

Thursday, September 27th, 2001 Catastrophe Risk Management

AMR Corp., the parent of American Airlines, said on Tuesday that insurers are canceling its coverage for claims caused by acts of war, terrorism, sabotage, hijacking and other similar events effective Sept. 26. According to a Reuters report, AMR, the parent of TWA and American Airlines and the world‘s largest carrier, said in a regulatory filing that its insurers have offered replacement coverage. The airline plans to obtain the replacement coverage before existing coverage is terminated. The report notes that American will be charged significantly larger premiums for this replacement coverage, and this new coverage will be in a substantially reduced amount for claims not involving aircraft passengers.

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http://www.insurancejournal.com/html/ijweb/breakingnews/national/na0901/na0927014.htm

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