The National Association of Independent Insurers (NAII) is urging state insurance regulators to consider personal lines exclusions on a case-by-case basis for insurers that demonstrate the potential for solvency problems stemming from a lack of reinsurance.
Absent the proposed federal backstop reinsurance legislation, insurers caution that losses from Sept. 11 and a hardening market have dried up the availability of reinsurance for both commercial and personal lines.
"Personal lines and "main-street" commercial lines insurers, as well as small and medium-sized insurance companies, may or may not be able to appropriately spread terrorism risks without the assistance of reinsurance," explained Robert Zeman, NAII vice president and assistant general counsel, in a letter to Georgia Insurance Commissioner John W. Oxendine.
