In response to concerns raised by some brokers, state Insurance Commissioner Mike Kreidler is telling insurers not to use a common policy exclusion for "governmental actions" to deny claims if water releases from the Howard Hanson Dam flood parts of the Green River Valley.

"I strongly urge all companies to refrain from taking such a position," Kreidler said in a letter sent to about 200 commercial insurers. He maintains such language does not apply in this case.

Many insurers use standardized policy language from the Insurance Service Organization. Such policies typically exclude "seizure or destruction of property by order of governmental authority."

In the Green River Valley situation, the Army Corps of Engineers has said that it may have to release more water than usual from the Howard Hanson Dam, due to structural weaknesses discovered in the earthen dam. After heavy rains, the water released from the dam could cause flooding in the valley below the dam.

"I do not believe that a government order to release water to protect the dam constitutes the type of `destruction of property by order of governmental authority'" included in many insurers' commercial flood policies, Kreidler said.

It seems to be at least possible that a court will have to rule on this issue at some point in the future.