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Marketplace Cost and Acceptance of Terror Insurance Still Uncertain.
A Feb. 26 deadline for insurers to offer terrorism insurance coverage, on insurance policies in effect before the Terrorism Risk Insurance Act was passed last November, has gone by without much change in the status quo. A clear pricing strategy has not emerged from insurers. And mortgage servicers and lenders are still largely in the dark about the response of borrowers, who have a 30-day time period to respond to insurers about whether they are going to accept or decline the coverage. And if borrowers choose to decline the coverage, the issue of force placed terrorism insurance might not die out.
Providing further interpretation of the TRIA, the Department of the Treasury has issued an interim final rule and has set up a March 31 deadline for interested parties to comment on the rule. The Mortgage Bankers Association is meeting with Peter Fisher, the undersecretary of the Treasury, to discuss some issues relating to the modified rule. Gail Davis Cardwell, the MBA's senior vice president, commercial/multifamily, said that a primary concern for the trade association remains a lack of notification to lenders and servicers when insurers price and offer the terrorism coverage to borrowers. Ms. Cardwell said, "What has transpired given the lack of notification is that servicers of loans that are currently on the books, where the borrowers are receiving the quotes, have had to contact the borrowers to get what the rate quotes are on each of the individual loans." Also, the Treasury has to submit a study on June 30, 2005 about the effect of the TRIA legislation and its impact in meeting the needs of the industry. If mortgage lenders received the notification, she said, they could help provide the economic data to the Treasury.
Another issue for the MBA relates to expedited decision-making by the Treasury as to what constitutes a domestic act of terrorism, which is not covered under the TRIA vs. a foreign act. Ms. Cardwell said, "Our concern is that, in the meantime, the loan has to ...
- Terrorism insurance up for discussion as Treasury report approaches.
- Newspaper article from: Asset Securitization Report Sibayan, Karen May 30, 2005 700+ words
...year and the Treasury due to give a...policy regarding terrorism insurance remains largely...the purchase of terrorism insurance if it is available...renewals." The Treasury is scheduled...participation. "The Treasury would prefer...2002, a lack of terrorism ...
- Treasury Official Touts Terrorism Insurance Program at Las Vegas Conference.
- Newspaper article from: Knight Ridder/Tribune Business News June 19, 2003 700+ words
...implemented by the U.S. Treasury Department provides...companies will make terrorism insurance available to every...deputy assistant Treasury secretary for financial...it became clear terrorism insurance could not be offered...new program, the Treasury administers a ...
- BUSH ENACTS TERRORISM INSURANCE LAW; TREASURY ISSUES GUIDANCE.
- Newspaper article from: Liability & Insurance Week December 9, 2002 700+ words
...s requirement they make terrorism insurance coverage available and disclose...said. Vaughan then joined Treasury Under Secretary for Domestic...insurance industry. Fisher said Treasury's guidelines followed those...disclosure requirements. He said Treasury would rely "upon the state...
- Terrorism insurance.(Treasury Department's survey to evaluate effectiveness of...
- Magazine article from: Emergency Preparedness News October 19, 2004 700+ words
TERRORISM INSURANCE. Select insurers and...questionnaires from the Treasury Department as it conducts...representative sample, will help Treasury track changes in the insurance...Survey forms are due to Treasury by Dec. 8. Contact...
- Treasury conducts terrorism insurance survey.(Capitol Beat)
- Magazine article from: Claims February 1, 2004 700+ words
...Insurance Act, the U.S. Treasury Department is continuing...three-stage survey of the terrorism insurance market. The survey is intended...survey. On Nov. 25, the Treasury issued proposed rules to...guidance for first notice to the Treasury, certification of compliance...
- News In Brief: Treasury's Bair Backs Terrorism Insurance.
- Magazine article from: The Bond Buyer March 21, 2002 700+ words
...would provide a federal backstop for terrorism insurance is working to the detriment of the economy, a Treasury official said. While the House of Representatives...failed to act, Sheila C. Bair, the Treasury's assistant secretary for financial...
- Treasury steps up terrorism insurance plan.
- News wire article from: United Press International December 4, 2002 700+ words
...International via COMTEX) The U.S. Treasury announced its latest measure Tuesday...for our economy," said Peter Fisher, Treasury's undersecretary for domestic finance...near term," he added. Specifically, Treasury will be administering the program until...
- ACLI pushes treasury for federal terrorism insurance backstop for group life....
- Magazine article from: National Underwriter Life & Health-Financial Services Edition Brostoff, Steven January 27, 2003 700+ words
...American Council of Life Insurers says. In a formal letter to the Treasury Department on the issue of whether group life insurance should...But the Consumer Federation of America, Washington, urges Treasury to demand extensive documentation from the life insurance industry...
