The nation's property and casualty insurers reported $8.47
billion in net claims arising from the Sept. 11 terrorist attacks,
according to a review by Weiss Ratings of more than 1,100 year-end
2001 statements filed with the National Association of Insurance
"The losses from the terrorist attacks made a big dent in the
capital of some firms, especially general reinsurance," said Martin
D. Weiss, chairman of Weiss Ratings. "However, even in this worst-
case situation, the companies still had adequate capital to cover
the losses. Most insurers were positioned to weather the losses
through reinsurance coverage and strong capitalization.
Unfortunately, despite the industry's strength, this catastrophic
attack will result in yet another round of rate increases for
Last year's terrorist attacks contributed to the property and
casualty insurance industry's first-ever loss and propelled the
Insurance Services Office to create a terrorism exclusion clause for
commercial policies. The new language, adopted by 45 states,
Washington, D.C., Puerto Rico, and Guam, excludes coverage on claims
arising from acts of terrorism. Of the five remaining states, New
York and California are considering revisions to the ISO exclusion,
while Texas and Florida have yet to rule on any form changes. Only
one state, Georgia, rejected the new terrorism exclusion language.
Looking back at Penn Square
Oklahoma City University School of Law in conjunction with the
Oklahoma Bar Review and the Conference on Consumer Finance Law will
host "Penn Square Bank -- 20 Years Later; An Examination into the
Causes, Effects, Responses, and Continuing Consequences of the
Banking and Deposit Insurance Crises of the 1980s."
The conference is scheduled Oct. 3-4 in at Sarkeys Law Center on
the OCU campus. Sponsors include BancFirst and the Clyde R. Evans
Charitable Trust of Oklahoma City.
On July 5, 1982, federal regulators closed Penn Square Bank of
Oklahoma City. "Penn Square Bank-20 Years Later" will explore the
events leading up to the bank's closure, its causes and effects, and
how the closure affected the lives and businesses of people
throughout the United States. The program will also cover the
legislative and regulatory responses and the ramifications for the
entire financial system and other consequences.
"The Penn Square Bank failure shook the financial world and
ushered in a deposit insurance crisis that dramatically changed the
American financial landscape," said OCU Professor of Law Alvin C.
Harrell, program coordinator and executive director of the
Conference on Consumer Finance Law. "This was an important national
event. The way financial intermediaries are regulated and governed
today can be traced back to changes that began with the Penn Square
In addition to Harrell, speakers from Oklahoma City include V.
Burns Hargis, Bank of Oklahoma; Paul G. Heafy, National Loan
Investors Partnership; Lawrence K. Hellman, OCU School of Law dean;
OCU Law Adjunct Professor D. Kent Meyers, a member of the Crowe &
Dunlevy law firm; OCU Law Professor Michael Mitchelson, former
director of the Oklahoma City offices of the Federal Deposit
Insurance Corp.; Ross Plourde, a member of the McAfee & Taft law
firm; OCU Law Adjunct Professor Laura N. Pringle, a principal in the
Pringle & Pringle law firm; and John P. Roberts, attorney at law.
Norman attorneys Marion C. Bauman and Paul R. Foster are also
included in the program. Bauman represented Penn Square Bank during
the 1980s and Foster served as general counsel for the Oklahoma
Other speakers include James R. Barth, senior finance fellow at
the Milken Institute, Santa Monica, Calif.; Bob Bracken, deputy
regional counsel for the Federal Deposit Insurance Corp., Dallas;
Victoria Dancy, with the FDIC, Dallas; Edward J. Kane, Boston
College, Chestnut Hill, Mass. …