| December 21, 2001 | November 8, 2000 | October 25, 2000 | September 27, 2000 |

PROPOSED RULE MAKING ACTIVITY

December 21, 2001

Gregory V. Serio, Superintendent
New York Department of Insurance
Agency Building 1 – ESP 8^th Floor
Albany, NY 12257

Dear Greg:

I write to you today to express my deepest concerns that New York could have a potentially serious commercial insurance availability problem after January 1. 

As you know, Congress has adjourned and will not return until late January, so future enactment of a Federal backstop is months away at best.  Meanwhile many insurers’ CAT treaties take effect on January 1 and many have no, or severely limited, coverage for acts of terrorism.  Insurers cannot insure commercial risks without adequate reinsurance or a federal backstop. 

It is therefore absolutely imperative that the New York Insurance Department begin approving terrorist act exclusions in policies.  Ideally the Department will approve language identical to the language being used by most other states.  I fear that the failure of the Department to act immediately will cause severe problems for New York’s businesses after January 1. 

Very truly yours,

Bernard N. Bourdeau, CAE
President