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| 2002 News and Press Releases |
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HEADLINE ARCHIVED:
SEC Looks At Having Public Companies Disclose Lack Of Terror Coverage
By: Dennis Kelly
BestWire. February 08, 2002
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Excerpt: WASHINGTON (BestWire) - The U.S. Securities and Exchange Commission is considering making businesses disclose to investors that they don't have commercial insurance to cover terrorism risks after Sept. 11, a move supported by the Alliance of American Insurers. The move is also a clear signal to lawmakers that a federal backstop is needed, some insurance groups said. "It's absolutely an important issue for the SEC to undertake," said Rodger Lawson, the Alliance's president. "We live in a new world and terrorism is a real risk. Companies need to be owning up to how they're dealing with this risk, and the SEC is in an excellent position to make it occur." SEC Chairman Harvey Pitt said the commission would consider such a disclosure requirement after testifying Feb. 5 at an unrelated Senate Banking Committee hearing, said Christi Harlan, director of Public Affairs at the SEC. "It's something we're looking at, but it's far from a proposal," Harlan said. "It's important that this information be disclosed to the public, because they are our investors," Lawson said.
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