SEC Mulls Terror Coverage Disclosure
Wednesday, February 6th, 2002 CatastropheThe U.S. Securities and Exchange Commission is considering whether to require businesses that do not have terrorism insurance to disclose that fact to investors, Reuters Newswire reported late yesterday. Reuters quoted SEC Chairman Harvey Pitt as telling reporters that it is an issue the SEC has to examine in the aftermath of the Sept. 11 tragedy, and is on the agenda of the SEC's Division of Corporate Finance. Mr. Pitt was quoted as saying that the issue could be addressed by either providing additional accounting guidance to corporations or by issuing a formal regulation, although no decision has been made. Rodger Lawson, president of the Alliance of American Insurers, Downers Grove, Ill., praised Mr. Pitt's statement, calling it "absolutely appropriate and necessary."
