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Article: On Terror Losses, Govt. Role, Founding Fathers: NAMIC President Speaks Out.(National Association of Mutual Insurance Companies Dave Anderson)(Brief Article)
- Article from:
- National Underwriter Property & Casualty-Risk & Benefits Management
- Article date:
- November 5, 2001
- Author:
CopyrightCOPYRIGHT 2001 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Like so many of his colleagues, Dave Anderson worries aloud a bout the consequences of a huge industry deductible tacked onto a federal backstop plan for insurance losses due to acts of terrorism.
How, he asks, do you even get to $10 billion (one threshold that's being seriously bandied about) without causing serious damage to companies, if there's no underlying mechanism to protect them, especially with the increasing evidence that private reinsurers will exclude terrorism coverage at renewal?
"A $1 billion loss could wipe out a lot of companies," he says. Like a lot of the smaller ones that make up a fair portion of the 1,300-member National ...