Virginia - Change to Endorsements that Cover or Exclude Loss Caused by Certified Acts of Terrorism; Special Company Action Required

Special 03 03 editions of endorsements that cover or exclude certified acts of terrorism have been filed and acknowledged for use in the state of Virginia for most lines of insurance. The 03 03 edition endorsements, which reflect changes required by the Virginia Bureau of Insurance (BOI), were filed to replace the 12 02 editions. The 03 03 editions of the endorsements that address loss caused by certified acts of terrorism under the AAIS umbrella programs are still pending.

The Virginia Bureau of Insurance has specified that any policy issued with a 12 02 edition of a certified terrorism endorsement must be amended to include the 03 03 edition counterpart. The effective date of the change must coincide with the policy effective date.

Bill 2606 recently passed by the Virginia state legislature will necessitate a future filing of revised endorsements that exclude loss caused by both certified and non-certified acts of terrorism for use with policies that are subject to the standard fire policy statutes. It is anticipated that the changes in law will become effective July 1, 2003 and that the corresponding endorsement changes will be filed to also become effective as of July 1, 2003.

More information is provided by AAIS Bulletin 03-0093. That Bulletin and the 03 03 edition endorsements acknowledged by the BOI have been posted to the AAIS open Web site at: http://www.aaisonline.com/terror/Bulletin/03-0093.htm

Bulletin 03-0093 will not be distributed in a paper format.

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