Commissioner Rejects War Exclusion

NU Online News Service, Sept. 24, 3:32 p.m. – Minnesota’s commerce commissioner Jim Bernstein says that insurance companies that have written insurance policies that would otherwise cover the loss of life and property that resulted from the Sept. 11 terrorist attacks in New York, Washington and Pennsylvania should not invoke an “act of war exclusion.”

“It seems clear that the attacks in New York, on the Pentagon, or on the plane that crashed in Pennsylvania do not constitute ?acts of war’ as contemplated by the language of these exclusions,” Bernstein says. “An ?act of war’ must be committed by a foreign government, a sovereign, or at least a recognizable authority utilizing military force.

“The United States Congress has forcefully stated its position on this issue. Within days after the attacks, the chairs of the House Financial Services Committee and the Insurance Subcommittee signed a letter directed to the National Association of Insurance Commissioners declaring that ?through necessity our government is expressing America’s outrage through words of war. But this rhetoric reflects the passion and determination of our country, not the legal reality of Tuesday’s destruction. Any attempt to evade coverage obligations by either primary insurers or reinsurers based on such legal maneuvering would not only be unsupportable and unpatriotic — it would tear at the faith of the American people in the insurance industry.’ I agree, as do other state insurance regulators.”