Terrorism Backstop Raises Questions
Thursday, November 21st, 2002 CatastropheNow that terrorism backstop legislation has cleared both houses of Congress and awaits President Bush‘s signature, insurers are beginning to take a closer look at the bill and how it will affect them—and questions have inevitably arose regarding compliance. NAPSLO Executive Director Dick Bouhan explained some of the major questions and concerns both his organization and other carriers have with what will probably be the new law—especially the prospect of surplus lines carriers facing federal regulation. "In effect, (the bill) regulates the forms, at the federal level, of surplus lines carriers," Bouhan explained. "And as an industry that‘s free of rates and forms, this is … certainly unprecedented that we have at least some regulation by the federal government for surplus lines carriers.
