Connecticut Insurance

Insurance Congress leaders said today they had a lot of money for about $ 40 billion of losses resulting from terrorist attacks on 11 September. But they said, they have a vital need to ensure that the coverage for possible future violence.

In testimony before the House Committee on Financial Services, some major insurers argued that since terrorism had the potential for huge financial repeated blows, the government should assume responsibility for paying the most cherished rights. They said they had not made a bailout, like the 15 billion dollar emergency aid package that airlines in the last week, but aid to thinking a huge financial abyss.

”There is no possibility for this award,’’said Ronald E. Ferguson, the chairman of General Re, the world’s largest insurers and a unit of Berkshire Hathaway, in an interview after the consultation. ”There is no possibility of placing your capital and your shareholders to what amounts to almost infinite risk.”

Dean R. O’Hare, the Chief Executive of Chubb Corporation, another large insurer, the legislator said that something should be done quickly. ”We have a crisis brewing, as we speak,”he said.

Negotiations are underway for the renewal of a large part of the nation commercial insurance, he said. No insurer, he said, is prepared on all the risk of a huge undertaking, and so far none of the companies, the share of reinsurance, as a general rule, the risk with retail or insurers are willing to cover terrorism.

Unless a solution is found quickly, he said, U.S. companies have no coverage for terrorism and, in the case of an attack, must pay for their own losses. This would allow some companies into bankruptcy and disrupt the economy.

Representative Christopher Shays, a Connecticut Republican, reacted with scepticism. If the question of the insurer “coverage, he asked a question von”können not, or not?”

Mr. O’Hare responded,”There is no way on earth a single company to offer hundreds of millions of reports on their own.”

The lawmakers reacted positively in general, insurers, they praised its decision to ignore the provisions of the war throughout much of their reports, perhaps have led to rejection and settlement of claims in recent attacks. But she showed she was not stingy on the government in the insurance business and take a commitment of several billion unsuspected.

”I would be very reluctant to accept that each plan sets the tax to pay for the brackets has losses,’’said Representative Richard H. Baker, a Republican from Louisiana. In particular, he added,”if no office in a genuine exercise of jurisdiction by the ability of payment and industry practices.”

Insurance is regulated state industrywide unattended of Confederation.

In the short term, could help, some from the Securities and Exchange Commission. Harvey L. Pitt, the chairman of the SEC, said the legislator, that the Agency is considering relaxing the rules so airlines and the insurance industry in the capital soon. He said he would ask Congress for the possibility of a waiver of certain regulations of commerce has admitted that companies and executives to help support the price of its shares. With the waiver, listed companies can buy their own shares without the usual restrictions on the size and timing.

As a model for government action, the insurers cited a plan developed in London in early 1990, in response to Irish Republican Army attacks against private insurers paid the first $ 150000 of terrorism or damage. Then a pool of money contributed by insurers and government debt paid. If these funds are exhausted - that the insurer had said never happened in London - the government to pay.

No terrorist attacks anywhere in near New York and Washington in deaths - more than 6000 people are missing and presumed dead - and financial losses.