Wheaton, Illinois, Jan. 16, 2007--The American Association of Insurance Services (AAIS) is introducing loss costs for pricing terrorism coverage in its Commercial Properties Program.

 A countrywide manual supplement filing, now underway, will substitute the new loss costs, based on modeled data, for rating factors currently filed for use in pricing "certified" terrorism losses that are reinsured under the federal government's Terrorism Risk Insurance Program (TRIP).

At the same time, loss costs are also being introduced for "non-certified" terrorism losses (those that are not reinsured under the federal program), and for terrorism losses that may occur after TRIP terminates but before the end of a policy period. Rating procedures are provided for both physical damage and business income coverage.

With this filing, AAIS also introduces terrorism rating zones in some states. Where applicable, the zones are defined on the basis of ZIP Code.

AAIS is a national advisory organization that develops policy forms and rating information used by more than 600 property/casualty companies throughout the U.S.