State insurance regulators have backtracked and decided not to grant preferential treatment to Lloyd's of London on funding requirements for claims resulting from the Sept. 11 terrorist attacks.
During a roundtable discussion yesterday, the National Association of Insurance Commissioners meeting for a Washington, D.C., summit withdrew its earlier recommendation to allow Lloyd's extra time to put aside 100 percent of the funding needed for World Trade Center losses.
This reversal came about while the NAIC membership and the Reinsurance Task Force discussed the need to fully evaluate liquidity issues on a syndicate-by-syndicate basis before granting an extension to the entire Lloyd's market.
