The biggest area of agreement, according to Martin DePoy,coordinator of CIAT's steering committee, is the mechanismsdeveloped to encourage insurers to cover NBCR (nuclear, biological,chemical) risk. "We have tried to wall off the insurance companies'liability so they will be able to better model and place the risk,"he tells GlobeSt.com.
According to duel reports issued last year by the USGovernmentAccountability Office and the President'sWorking Group on Financial Markets the private market hasnot provided adequate coverage for NBCR attacks outside of workers'compensation lines.
The solution that AIA and CIAT propose is for new legislation tocontain a mandatory "make-available" provision that would requireinsurers to follow the standard workers' compensation model. Thiswould be accompanied by an acknowledgement that the federalgovernment is responsible for NBCR terrorism losses above primaryinsurers' individual NBCR retention levels. Additionally, TRIEA'sinsurer co-pay requirement for NBCR would be eliminated.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
