California State insurance regulators announced that insurance companies must offer terrorism coverage even though Congress has failed to provide an essential backstop for insurers in the event of future terrorism acts.
"The National Association of Independent Insurers (NAII) is disappointed that California will not join the more than 35 other states that have made the sensible decision to approve terrorism exclusions in order to protect insurer solvency," said Sam Sorich, vice president and western regional manager at NAII.
As a result, California insurers now may decide to cancel or not issue some new commercial lines policies and may non-renew policies for certain risks, added Don Griffin, assistant vice president of business and personal lines at NAII.
