Tuesday, January 8th, 2002 — New York's insurance superintendent has told legislators he is rejecting terrorist exclusion provisions in the Insurance Services Office proposed policy language because insurers can't "walk away" from offering protection to high-rise property owners.
Excerpts of Superintendent Gregory V. Serio's remarks to legislators and insurance agents, made at a breakfast meeting last week, were released yesterday by the Professional Insurance Agents of New York State Inc., which held the session at the state capitol in Albany, N.Y. last Thursday.
Because the ISO terrorism exclusion for commercial lines policies is triggered by a terrorist act causing $25 million in insured damage, Mr. Serio said it would exclude virtually every building in lower Manhattan. "I am not ready to say [to insurers], 'you can walk away from this exposure,'" he said.