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Early next week, AAIS will begin filing revised
terrorism endorsements and policyholder notices to reflect changes in
the federal terrorism reinsurance program.
In December, Congress voted to extend the Terrorism
Risk Insurance Program (TRIP) through the end of 2007, and to change the
share of terrorism losses the federal government will reinsure. In
response, AAIS is filing these documents:
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New "conditional" terrorism endorsements
reflecting the extension of TRIP coverage through Dec. 31, 2007.
(Conditional terrorism exclusions state that TRIP coverage ends when
the program expires or is materially altered. They are intended for use on
policies whose term extends beyond the program's scheduled
expiration.)
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New endorsements that combine exclusions for
both "certified" and "non-certified" terrorism losses. Existing
exclusions that address certified and non-certified losses
separately will remain in use, as well.
(Certified terrorism losses arise from acts of foreign terrorism of
enough magnitude to be certified by federal officials and, thus, are
reinsured under the federal program, once certain thresholds are met. Losses from all other
"non-certified" acts of terrorism are not covered under the
program.)
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New policyholder notices that reflect the share
of terrorism losses covered by federal reinsurance for 2006 and
2007. (These can also be used in case TRIP is further extended
beyond 2007.)
The filings are being made under the following AAIS
programs: Agricultural Output, Artisans, Businessowners, Commercial
Inland Marine, Commercial Liability, Commercial Output and COP-XL,
Commercial Properties, Developers Output, Farm Properties, Glass,
and Personal and Premises Liability. Affiliates in these lines will be
notified of filing status by bulletin.
AAIS will also withdraw certain terrorism endorsements
that are no
longer appropriate for use under the Farmowners and Crime programs,
which have been eliminated from the federal terrorism program.
"Post-TRIP" exclusions approved in most states will remain on file for
those two programs, however.
AAIS is developing new endorsements and policyholder
notices for providing underinsured motorists coverage in Wisconsin under
the AAIS Personal Umbrella,
Commercial Umbrella, and
Farm Umbrella
programs.
In a recent ruling, the state's supreme court ruled
that
a
Wisconsin law
[see section 632.32(4m)(d)] requires insurers to notify umbrella policyholders
that they can purchase underinsured motorists coverage of at least
$50,000 per person and $100,000 per accident.
Underinsured motorists coverage is a first-party
coverage commonly packaged with liability policies; it compensates
policyholders for damage or injuries caused by another motorist who does
not have adequate insurance to cover the loss.
The AAIS endorsements can be used to provide
underinsured motorists coverage subject to a combined single limit. An
each occurrence limit can be shown in the schedule included in each
endorsement or in the policy declarations. Wisconsin affiliates for
these lines will receive copies of these materials by bulletin.
For information on affiliating with AAIS for use of
its umbrella/excess liability program, contact Rick Maka, director of
marketing, at rickm@AAISonline.com.
AAIS staff will be in attendance at upcoming industry
meetings.
Robert Guevara, vice president of inland marine, and Joyce Tignino, vice
president of marketing and industry relations, will be at the annual
meeting of the Inland Marine Underwriters
Association, May 20-24 in Ponte Vedra, Fla.
Paul Baiocchi, president, and Tignino will attend the annual conference
of the New York Insurance Association,
May 31-June 2, Lake Placid, N.Y.
The Kentucky Office of Insurance recently released a
bulletin that directs insurers to
information
on the office's website needed to pay local and county premium taxes in
the state. The new information applies to premium received from July 1,
2006 through June 30, 2007.
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