Two rating agencies issued warnings yesterday over federal government progress on terrorism insurance—one said action must come quickly and the other called current proposals being considered insufficient.
Standard & Poor's in New York called the situation, "Y2K+2," and said commercial insurers face a potentially untenable situation if the federal government doesn't act to pass legislation before the end of the month and state regulators don't allow terror exclusions on commercial insurance policies by year end.
While there was plenty of time to deal with the Y2K bug before Jan. 1, 2001, the same is not true for the "Y2K+2 bug," Steve Dreyer, head of insurance ratings at Standard & Poor's, said in statement, referring to the fact that corporate America's insurance for terrorism is expiring
