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ALASKA
Status report on compliance with the
Terrorism Risk Insurance Act of 2002
and related state regulatory policies Regarding
"certified" commercial losses
For an act of terrorism to be certified by the U.S. Secretary of the Treasury (and thus
trigger coverage under the federal Terrorism Reinsurance Program), it must cause more than
$5 million in losses and be inspired, directed, and/or carried out on behalf of a foreign
person or interest.
IN FORCE BUSINESS -
Use the endorsements and rating information shown below only when the insured accepts the
offer of coverage for certified terrorism loss. |
NEW AND RENEWAL
BUSINESS
Posting date:
1/10/03, 1/13/03 (addl. info.), 1/28/03 (addl. info.), 6/6/03 (new endrsmnt editions) |
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AAIS commercial lines programs filed on behalf of companies |
AAIS endorsement used when coverage is provided under the federal
Terrorism Insurance Program |
Rating factor to accompany coverage endorsement |
AAIS endorsement used when insured declines terrorism coverage
(New and Renewal Policies Only) |
Fire following
rating factor for SFP states |
| Agricultural Output |
CL 0600 12 02 |
.0125 |
CL 0610 06 03** |
N/A |
| Artisans |
AP 0700 12 02 |
.0100 |
AP 0710 06 03** |
N/A |
| Businessowners |
BP 0750 12 02 |
.0125 |
BP 0760 06 03** |
N/A |
| Commercial Inland Marine (filed classes) |
CL 0600 12 02 |
.0125 |
CL 0610 06 03** |
N/A |
| Commercial Liability |
GL 0250 12 02 |
.0100 |
GL 0260 06 03** |
N/A |
| Commercial Output |
CL 0600 12 02 |
.0125 |
CL 0610 06 03** |
N/A |
| Commercial Output XL |
CL 0600 12 02 |
.0125 |
CL 0610 06 03** |
N/A |
| Commercial Properties |
CL 0600 12 02 |
.0125 |
CL 0610 06 03** |
N/A |
| Contractors & Developers Output |
CL 0600 12 02 |
.0125 |
CL 0610 06 03** |
N/A |
| Crime |
CL 0600 12 02 |
.0125 |
CL 0610 06 03** |
N/A |
| Farm Properties |
FL 0600 12 02 |
No Manual On File |
FL 0610 06 03** |
N/A |
| Farmowners |
FO 0600 12 02 |
No Manual On File |
FO 0610 06 03** |
N/A |
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| Glass |
CL 0600 12 02 |
.0125 |
CL 0610 06 03** |
N/A |
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| Personal & Premises Liability (Farm Only) |
GL 0310 12 02 |
.0100 |
GL 0320 06 03** |
N/A |
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**Special version of endorsement applies. |
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AAIS Effective Date:
1/10/03 |
Program |
AAIS File No. |
State File No. |
Agricultural
Output |
AAIS-2002-82AGF |
52917 |
Artisans |
AAIS-2002-82APF |
52918 |
Businessowners |
AAIS-2002-82BPF |
52919 |
| Commercial Inland Marine (Filed Classes) |
AAIS-2002-82CIMF |
52916 |
Commercial
Liability |
AAIS-2002-82CLF |
52920 |
Commercial
Output |
AAIS-2002-82COPF |
52915 |
Commercial
Output XL |
AAIS-2002-82COPXLF |
52914 |
Commercial
Properties |
AAIS-2002-82CPF |
52913 |
Crime |
AAIS-2002-82CRF |
52912 |
Contractors
& Developers Output |
AAIS-2002-82DOPF |
52911 |
Farm
Properties |
AAIS-2002-82FPF |
52922 |
Farmowners |
AAIS-2002-82FOF |
52921 |
Glass |
AAIS-2002-82GSF |
52910 |
| Personal & Premises Liability (Farm Only) |
AAIS-2002-82PPLF |
52923 |
Filing Number(s): |
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Program |
AAIS File No. |
State File No. |
Agricultural
Output |
AAIS-2002-82AGR |
52937 |
Artisans |
AAIS-2002-82APR |
52936 |
Businessowners |
AAIS-2002-82BPR |
52935 |
| Commercial Inland Marine (Filed Classes) |
AAIS-2002-82CIMR |
52934 |
Commercial
Liability |
AAIS-2002-82CLR |
52933 |
Commercial
Output |
AAIS-2002-82COPR |
52932 |
Commercial
Output XL |
AAIS-2002-82COPXLR |
52931 |
Commercial
Properties |
AAIS-2002-82CPR |
52929 |
Crime |
AAIS-2002-82CRR |
52928 |
Contractors
& Developers Output |
AAIS-2002-82DOPR |
52930 |
Farm
Properties |
No Manual On File |
Not Applicable |
Farmowners |
No Manual On File |
Not Applicable |
Glass |
AAIS-2002-82GSR |
52927 |
| Personal & Premises Liability (Farm Only) |
AAIS-2002-82PPLR |
52926 |
Company action:
Endorsements
Companies that have granted AAIS filing
authority for forms and endorsements can adopt the endorsements without notifying the
insurance department.
Rating Information
Companies that have granted AAIS filing
authority for rating information can adopt this rating information without notifying the
insurance department if they intend to use it without change.
However, companies that choose to depart
from the AAIS filed rating information must notify the insurance department in writing as
soon as possible.
Expedited Filing Transmittal
An Expedited Filing Transmittal Document For Terrorism Risk
Insurance Forms and Pricing must be included in order to receive expedited handling of any
filing required under these instructions. |
Comments:
Disclosure Notices
Affiliated companies can
use the AAIS policyholder notices as filed with slight modifications for individual
policies or develop independent notices that contain the information required by the
Terrorism Risk Insurance Act. Companies that develop their own notices are required to
place them on file for informational purposes. |
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Separate Line Item
Disclosure Endorsement (CL 0605 02 03)
Effective Date:
2/11/03
Filing Numbers: |
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Program |
AAIS File No. |
State File No. |
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Agricultural
Output |
AAIS-2002-3AGF |
53506 |
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Artisans |
AAIS-2003-3APF |
53505 |
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Businessowners |
AAIS-2003-3BPF |
53504 |
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Commercial Inland Marine (Filed Classes) |
AAIS-2003-3CIMF |
53503 |
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Commercial
Liability |
AAIS-2003-3CLF |
53502 |
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Commercial
Output |
AAIS-2003-3COPF |
53501 |
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Commercial
Output XL |
AAIS-2003-3COPXLF |
53500 |
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Commercial
Properties |
AAIS-2003-3CPF |
53498 |
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Crime |
AAIS-2003-3CRF |
53497 |
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Contractors
& Developers Output |
AAIS-2003-3DOPF |
53499 |
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Farm
Properties |
AAIS-2003-3FPF |
53496 |
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Farmowners |
AAIS-2003-3FOF |
54206 |
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Glass |
AAIS-2003-3GSF |
53495 |
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Personal & Premises Liability (Farm Only) |
AAIS-2003-3PPLF |
53494 |
Company Action:
Affiliated companies can adopt the endorsement, as filed, without
taking any filing action. |
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With respect to the original AAIS War,
Military Action, and Terrorism Exclusions (CL 0468, AP 0686, BP 0674, GL 0985, GS 0194, FL 0450, FO
0450, and GL 0990), which were distributed as attachments to Bulletins 02-0158 and
02-0224:
On December 10, 2002, the Alaska Division of Insurance issued
Bulletin B 02-20 detailing requirements for compliance with the Terrorism Risk Insurance
Act of 2002. Contrary to guidance provided by most other states and the NAIC, this state
will no longer allow the use of any previously approved War and Terrorism exclusions.
Companies should immediately discontinue using these exclusions on all new and renewal
policies.
In discussing these exclusions, the
bulletin states:
By order R 02-08, the Director of the
Alaska Division of Insurance is withdrawing approval of existing terrorism exclusions
containing these limitations. Therefore, an insurer may not apply these exclusions for
non-certified losses to new and renewal business. Exclusions for non-certified losses will
be re-evaluated. Exclusions for non-certified losses must be filed with and approved by
the division before they may be used.
Use the following link to view the
entire Alaska bulletin. Click on Bulletin B02-20.
http://www.dced.state.ak.us/insurance/bulletins/bulletins.htm |
AAIS commercial lines advisory filings |
AAIS endorsement used when coverage is provided under the federal
Terrorism Insurance Program |
Rating factor to accompany coverage endorsement |
AAIS endorsement used when insured declines terrorism coverage |
| Commercial Umbrella |
UM 0755 12 02 |
Refer to company |
UM 0765 06 03** |
**Special
version of endorsement applies |
AAIS Advisory Effective Date:
1/10/03 |
Filing Number(s): |
Program |
AAIS File No. |
State File No. |
Commercial
Umbrella: |
AAIS-2002-84CUP |
52925 |
| Company action: Endorsements
Each company that wishes
to adopt these endorsements must do so by establishing an effective date and notifying the
Insurance Department in writing.
Rating Information
Companies must also submit
related rating information independently.
Expedited Filing Transmittal
An Expedited Filing Transmittal Document For Terrorism Risk
Insurance Forms and Pricing must be included in order to receive expedited handling of any
filing required under these instructions. |
Comments:
Disclosure Notices
Affiliated companies that wish to adopt the AAIS policyholder
notices as filed, with slight modifications for individual policies, must do so by
notifying the Insurance Department in writing. Companies that develop their own notices
are required to place them on file for informational purposes. |
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Separate
Line Item Disclosure Endorsement (CL 0605 02 03)
Filing Numbers: |
Program |
AAIS File No. |
State File No. |
Commercial Umbrella |
AAIS-2003-4CUP |
53507 |
Effective Date:
2/11/03 |
Company Action:
Affiliated companies can adopt the endorsement by establishing an
effective date and notifying the insurance department in writing. Refer to the applicable
Filing Number(s) when
corresponding with the Department. |
With respect to the original AAIS War, Military Action,
and Terrorism Exclusions (UM 0125 and UM 0311), which were distributed as attachments to
Bulletins 02-0165 and 02-0225:
On December 10, 2002, the Alaska Division of Insurance issued
Bulletin B 02-20 detailing requirements for compliance with the Terrorism Risk Insurance
Act of 2002. Contrary to guidance provided by most other states and the NAIC, this state
will no longer allow the use of any previously approved War and Terrorism exclusions.
Companies should immediately discontinue using these exclusions on all new and renewal
policies.
In discussing these exclusions, the bulletin states:
By order R 02-08, the Director of the Alaska Division of
Insurance is withdrawing approval of existing terrorism exclusions containing these
limitations. Therefore, an insurer may not apply these exclusions for non-certified losses
to new and renewal business. Exclusions for non-certified losses will be re-evaluated.
Exclusions for non-certified losses must be filed with and approved by the division before
they may be used.
Use the following link to view the entire Alaska bulletin. Click
on Bulletin B02-20.
http://www.dced.state.ak.us/insurance/bulletins/bulletins.htm
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Regarding "non-certified" commercial
losses
Non-certified terrorism losses are all commercial losses from acts of terrorism that
are not certified as such by the Secretary of the Treasury, and thus not covered by the
federal reinsurance program. These include, but are not necessarily limited to, acts
inspired, directed, and/or carried out by domestic U.S. groups or individuals.
Posting date: 5/21/03 |
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| AAIS commercial lines
programs
filed on behalf of companies |
AAIS endorsement used to exclude coverage for non-certified
terrorism losses |
AAIS endorsement used
to exclude coverage for nuclear, biological, or chemical terrorism losses |
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Agricultural Output |
CL 0630 06 03** |
CL 0650 06 03** |
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Artisans |
AP 0730 06 03** |
AP 0750 06 03** |
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Businessowners |
BP 0780 06 03** |
BP 0800 06 03** |
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Commercial Inland Marine (filed classes) |
CL 0630 06 03** |
CL 0650 06 03** |
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Commercial Liability |
GL 0270 06 03** |
GL 0280 06 03** |
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Commercial Output |
CL 0630 06 03** |
CL 0650 06 03** |
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Commercial Output XL |
CL 0630 06 03** |
CL 0650 06 03** |
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Commercial Properties |
CL 0630 06 03** |
CL 0650 06 03** |
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Contractors & Developers Output |
CL 0630 06 03** |
CL 0650 06 03** |
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Crime |
CL 0630 06 03** |
CL 0650 06 03** |
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Farm Properties |
FL 0630 06 03** |
FL 0650 06 03** |
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Farmowners |
FO 0630 06 03** |
FO 0650 06 03** |
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Glass |
CL 0630 06 03** |
CL 0650 06 03** |
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Personal & Premises Liability (Farm Only) |
GL 0330 06 03** |
GL 0340 06 03** |
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AAIS Effective Date:
7/15/03 |
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Filiing Numbers:
Endorsements |
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Program |
AAIS File No. |
State File No. |
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Agricultural
Output |
AAIS-2002-83AGF |
53423 |
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Artisans |
AAIS-2002-83APF |
53429 |
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Businessowners |
AAIS-2002-83BPF |
53431 |
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| Commercial Inland Marine (Filed Classes) |
AAIS-2002-83CIMF |
53424 |
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Commercial
Liability |
AAIS-2002-83CLF |
53428 |
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Commercial
Output |
AAIS-2002-83COPF |
53422 |
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Commercial
Output XL |
AAIS-2002-83COPXLF |
53432 |
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Commercial
Properties |
AAIS-2002-83CPF |
53426 |
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Crime |
AAIS-2002-83CRF |
53425 |
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Contractors
& Developers Output |
AAIS-2002-83DOPF |
53427 |
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Farm
Properties |
AAIS-2002-83FPF |
53433 |
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Farmowners |
AAIS-2002-83FOF |
53434 |
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Glass |
AAIS-2002-83GSF |
53421 |
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Personal &
Premises Liability (Farm Only) |
AAIS-2002-83PPLF |
53430 |
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Rules |
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Program |
AAIS File No. |
State File No. |
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Agricultural
Output |
AAIS-2002-83AGR |
53415 |
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Artisans |
AAIS-2002-83APR |
53414 |
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Businessowners |
AAIS-2002-83BPR |
53413 |
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| Commercial Inland Marine (Filed Classes) |
AAIS-2002-83CIMR |
53417 |
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Commercial
Liability |
AAIS-2002-83CLR |
53416 |
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Commercial
Output |
AAIS-2002-83COPR |
53418 |
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Commercial
Output XL |
AAIS-2002-83COPXLR |
53419 |
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Commercial
Properties |
AAIS-2002-83CPR |
53409 |
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Crime |
AAIS-2002-83CRR |
53420 |
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Contractors
& Developers Output |
AAIS-2002-83DOPR |
53410 |
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Farm
Properties |
No Manual On File |
Not Applicable |
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Farmowners |
No Manual On File |
Not Applicable |
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Glass |
AAIS-2002-83GSR |
53411 |
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Personal &
Premises Liability (Farm Only) |
AAIS-2002-83PPLR |
53412 |
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Company action:
Endorsements
Companies that have granted AAIS filing
authority for forms and endorsements can adopt the endorsements without notifying the
insurance department.
Rules Supplement
Companies that have granted AAIS filing
authority for rules can adopt the manual supplement without notifying the insurance
department if they intend to use it without change.
However,
companies that choose to depart from the AAIS filed rules, must notify the insurance
department in writing as soon as possible.
NOTE: The Rules Supplement does not apply to Farmowners or Farm
Properties since AAIS has no manual on filed for these two lines of insurance. |
| Comments: Manual rules that address the
use of the various terrorism endorsements were filed in conjunction with the endorsements
that exclude loss caused by non-certified acts of terrorism. (See the Sample NSFP
Terrorism Rules Supplement attachment to Bulletin 02-0550 at this Web site). |
| AAIS commercial lines
advisory filings |
AAIS endorsement number
for excluding coverage for non-certified terrorism losses |
AAIS endorsement used
to exclude coverage for nuclear, biological, or chemical terrorism losses |
Commercial Umbrella |
UM 0775 06 03** |
UM 0785 06 03** |
Farm Umbrella |
UM 0350 06 03** |
UM 0360 06 03** |
AAIS Advisory Effective
Date:
7/1/03 |
Filing Number(s): |
Program |
AAIS File No. |
State File No. |
Commercial Umbrella |
AAIS-2002-85CUP |
53451 |
Farm Umbrella |
AAIS-2002-85FUP |
53452 |
Company action:
Endorsements
Each
company that wishes to adopt these endorsements must do so by establishing an effective
date and notifying the Insurance Department in writing. |
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