The National Association of Insurance Commissioners has refused to give its stamp of approval to terrorism exclusions in personal-lines insurance policies.
The action came in a unanimous vote by 45 states that met by telephone yesterday.
Terri Vaughan, NAIC president and Iowa insurance commissioner, said the commissioners voted in favor of the following motion:
"It is the sense of the NAIC membership that terrorism exclusions are generally not necessary in personal lines to maintain a competitive market and they may violate state law.
However, we recognize that state laws vary in their authority and discretion.
Furthermore there may be unique company circumstances that need to be considered in individual cases. We expect these cases to be limited."
