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NJ Passes Terrorist Exclusions

As reported in The Star Ledger on 1/8/02, state regulators in New Jersey have approved new language for commercial policies that allows insurers to decline payment on claims resulting from terrorist attacks. This change in language applies to business policies, not to homeowners and auto policies, and it doesn't apply to Workers Compensation coverage. New Jersey, along with most other states, approved the new language developed by the Insurance Services Office (ISO) only after Congress took no action on proposals for a national terrorism insurance plan. If and when such a plan is created, New Jersey will require insurers to resume covering terrorist attacks. As of mid-January, New York and California had not acted on approving the new language.