October 19, 2005

FLORIDA APPROVES ENDORSEMENTS
FOR HURRICANE DEDUCTIBLES

Florida has approved new AAIS endorsements that allow insurers to offer separate hurricane deductibles for commercial residential property on an annual or per occurrence basis.

The endorsements, which take effect Jan. 1, 2006, are available under the AAIS Artisans, Businessowners, and Commercial Properties programs. They can be used on policies insuring residential apartment buildings, condominium associations, cooperative associations, and the common elements of a homeowners' association.

A new residential risks hurricane deductible endorsement has also been approved for the AAIS Agricultural Output Program, effective Jan. 1, 2006.

The endorsements were developed to comply with a new Florida requirement that insurers offer commercial insureds a choice between an annual or per occurrence hurricane deductible.

IRMI UPDATES ITS ANALYSIS
OF AAIS BUSINESSOWNERS PROGRAM

Commercial Property Insurance, a three-volume reference published by the International Risk Management Institute, Inc. (IRMI), features discussion of AAIS Businessowners forms and endorsements updated in 2004. The analysis of endorsements was provided in the recently released October 2005 supplement to the publication; analysis of the base policy forms was provided in the May 2005 supplement.

The reference is available through both the IRMI Online service and SilverPlume Sage.

NAIC GROUPS TO MEET IN CONJUNCTION 
WITH DISASTER INSURANCE SUMMIT

The National Association of Insurance Commissioners (NAIC) has announced that its working groups on catastrophes and terrorism will hold meetings in conjunction with the National Catastrophe Insurance Summit, Nov. 15-16 in Burlingame, Calif. (suburban San Francisco).

The summit will explore the possibility of incorporating coverage for potentially catastrophic perils--including earthquake, flood, and terrorism--into standard property policies.

The summit is by invitation only; invitations are being handled by the California Department of Insurance. Meetings of both NAIC working groups are open to interested parties; those interested in attending should contact Pam Simpson at psimpson@naic.org or by calling 816-842-3600.