Are you claiming that the entities on the other side of this trade (the ones who paid to be insured againist a catastrophic loss) aren't insured againist terrorism being the spark that starts the collaspe? I thought he was insuring againist a 30% decline in the market, I doubt there are any provisions as to what event causes this decline. You should probably be less quick to jump on others back.
I know nothing about what the equity index policy stipulates, and may or may not hold terrorism clauses in that contract. I was referring to liability policies in general. Our esteemed poster indicated that the Oracle of Omaha is a fear monger and hikes mom and pop's liability premiums due to terrorism coverage. Since I, myself run a regional insurance company, I am well aware of the premiums we are allowed to charge. In my state, terrorism premium can not exceed one tenth of one percent on any property/casualty policy. In fact, insurance companies are lobbying Congress to remove these mandated coverages. Terrorism is not something our actuaries can adequately rate.