BNB / Cultellus? wrote: So, the NY port Authority ended up selling the WTC complex lease to billionaire tycoon Larry Silverstein in the spring of 2001 who immediately took out a massive insurance policy against terrorism and so when the planes hit the buildings (acting as the cover for the demolitions) and were completely destroyed, he went to court to collect double the payout saying two planes constituted two acts of terrorism and he won, walking away with $4.5 billion in insurance money while the billion it was going to cost in asbestos abatement disappeared. Quite the trick ay?
The way the conspiracy nuts make it sound, it's a simple as a guy buying fire insurance a month before running two jeeps into his property to say it was two fires and walking away with 2x payout.
Here's the insurance play-by-play from back in 2002 as the litigation was unfolding:
http://www.law.com/jsp/article.jsp?id=1030343783307
The Port Authority of New York and New Jersey, which finished building the complex in 1972, carried only $1.5 billion (per occurrence) in coverage on all of its buildings, which, in addition to the Trade Center, included the three New York City area airports. Silverstein's lenders insisted on more coverage, first demanding $2.3 billion, then $3.2 billion, and then, right before the lease deal closed, $3.55 billion
That's right, conspiracy nuts, whether it's for a car or a skyscraper, if you're getting financed, your lenders are going to make you insure the damned thing because it's their money on the line, not yours. That number creeping up is the lenders coming to terms with the minimum coverage they can live with. It's not Silverstein walking in and getting the biggest policy on the market, it's the lenders forcing him to get enough to cover their investment adequately. And it wasn't "a massive insurance policy against terrorism". It was a a general insurance policy that anyone buying a skyscraper on credit would have to get, one that didn't
exclude terrorism.
Remember those terrorist who shot up a bunch of cars on an LA freeway years ago? It would be like saying, suppose one of drivers who got shot up had just bought her car a month prior and got insurance for it, and the insurance company covered the bullet holes. "How could she have known!"
The 2 x occurrences 2x payout is even more evidence against any conspiracy interpretation.
No, Silverstein didn't get double. His coverage was for 3.5 billion, and double would have been 7 billion. Out of the 20+ insurers, most payed on a single event interpretation, and 9 payed on the 2-event interpretation; but the 2-event plausibility was by a happy accident.
he had in hand only temporary contracts from his insurers. Most of those had been executed on the basis of a sample form that Willis had circulated, a form that included a broad definition of what constituted an occurrence for insurance purposes. (The encompassing definition was designed by Willis to favor policyholders; the more damage that could be lumped into one occurrence, the fewer deductibles policyholders would have to pay.)
The original design goes against two-event interpretation in order to save on deductibles. However:
One key carrier, however, had refused to base negotiations on the Willis form. Travelers Indemnity Co. insisted on using its own form, which did not specifically define "occurrence," as the foundation of discussions about a final policy. Willis needed Travelers to stay in the deal, so Willis brokers spent August 2001 deep in negotiations with Travelers underwriters about changes proposed to the Travelers form.
Because of disputes over this form by one insurer, which didn't overtly have anything to do with the "occurrences" language - "(These negotiations, interestingly, did not include discussion of the definition of "occurrence.")" - there was no one-event bias and so after the fact:
Silverstein and Willis now say that all of the insurance companies should be held to the terms of the Travelers policy, which, in their lawyers' interpretation of New York state insurance law, leads to the conclusion that the Trade Center collapse constituted two occurrences. The insurers -- no surprise here -- say that the Willis form prevails.
So had Travelers gone along with the crowd, the whole deal would have been hampered by the "one-occurrence" bias. This is anything but design before the fact to cash in on a double payout, knowing that 2 planes are in the plan.
But it's worse, because when the attacks happened, this complicated policy issued by 20+ sub insurers wasn't even inked. Nobody planning to burn their house down to collect a fire insurance policy they just bought would do so without having the terms laid out in black-and-white exactly to their liking before striking that match. He didn't "walk away" with 2x, he prevailed with 1.28x after 6 years of litigation.
The insurance drama could hardly be anything in the same galaxy as premeditated fraud for anyone who isn't stupid, and who has spent more than 5 minutes researching. 7 years? Good help us.
We can't take farmers and take all their people and send them back because they don't have maybe what they're supposed to have. They get rid of some of the people who have been there for 25 years and they work great and then you throw them out and they're replaced by criminals.