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Wheaton, Illinois, Dec. 29, 2005--Insurers that
use programs developed by the American Association of Insurance
Services (AAIS) will require no immediate changes to existing
endorsements and other materials to comply with the recent extension
of the federal terrorism reinsurance backstop.
AAIS is a national advisory organization that
develops property/casualty forms and rating information, including
those used to provide or exclude coverage under the Terrorism Risk
Insurance Program (TRIP), a program created after the Sept. 11th
attacks and recently extended through 2007.
The biggest change directly affecting AAIS
members is the recent elimination of farm and crime coverage from
the federal program. AAIS affiliates for its farm lines and
commercial crime program already have use of "post-TRIP" terrorism
endorsements filed and approved in most states for policies that
take effect on or after Jan. 1, 2006.
For other AAIS agribusiness, commercial lines,
and inland marine programs still covered under TRIP, existing
endorsements and rating information remain in effect for addressing
"certified" and "non-certified" terrorism losses. Also, existing
endorsements addressing "certified" terrorism coverage remain in
effect for use with the Dwelling Properties and Personal & Premises
Liability programs for premises regularly rented or held for rental
to others.
AAIS will take filing action in 2006 to update
endorsements and policyholder notices for use on policies that will
take effect in 2007. Existing policyholder notices and premium
disclosure endorsements can be used with policies that expire on or
before Dec. 31, 2006.
For information about affiliating with AAIS for
use of its insurance line programs, contact Rick Maka, director of
marketing, at rickm@AAISonline.com, or by calling
800/564-AAIS.
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