American Association of Insurance Services

ILLINOIS
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: 1/6/03, 1/31/03 (addl. info), 6/5/03 (endorsement editions revised)
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 05 03*	Filing Not Required (Use .0300)	CL 0620 05 03*			Filing Not Required (Use .0105)
Artisans	AP 0700 05 03*	Filing Not Required (Use .0300)	AP 0720 05 03*			N/A
Businessowners	BP 0750 05 03*	Filing Not Required (Use .0300)	BP 0770 05 03*			Filing Not Required (Use .0075)
Commercial Inland Marine (filed classes)	CL 0600 05 03*	Filing Not Required (Use .0300)	CL 0610 05 03*			N/A
Commercial Liability	GL 0250 05 03*	Filing Not Required (Use .0300)	GL 0260 05 03*			N/A
Commercial Output	CL 0600 05 03*	Filing Not Required (Use .0300)	CL 0620 05 03*			Filing Not Required (Use .0105)
Commercial Output XL	CL 0600 05 03*	Filing Not Required (Use .0300)	CL 0620 05 03*			Filing Not Required (Use .0105)
Commercial Properties	CL 0600 05 03*	Filing Not Required (Use .0300)	CL 0620 05 03*			Filing Not Required (Use .0105)
Contractors & Developers Output	CL 0600 05 03*	Filing Not Required (Use .0300)	CL 0620 05 03*			Filing Not Required (Use .0105)
Crime	CL 0600 05 03*	Filing Not Required (Use .0300)	CL 0610 05 03*			N/A
Farm Properties	FL 0600 05 03*	Filing Not Required (Use .0300)	FL 0620 05 03*			Filing Not Required (Use .0105)
Farmowners	FO 0600 05 03*	Filing Not Required (Use .0300)	FO 0620 05 03*			Filing Not Required (Use .0075)
Glass	CL 0600 05 03*	Filing Not Required (Use .0300)	CL 0610 05 03*			N/A
Personal & Premises Liability (Farm Only)	GL 0310 05 03*	Filing Not Required (Use .0300)	GL 0320 05 03*			N/A
* Special version of endorsement applies.
AAIS Effective Date: 1/6/03
AAIS Filing Number(s): AAIS-2002-82
Company action: *Endorsements* Companies that have granted AAIS filing authority for forms and endorsements can adopt the endorsements without notifying the insurance department. Companies that choose not to adopt a filing must notify the insurance department as soon as possible. *Rating Information* Rates and/or loss costs are not subject to filing requirements in Illinois. Companies affiliated for rating information need to establish an effective date, and submit only the completed form RF-3 (Illinois Department of Insurance Summary Sheet) to the insurance department. Companies should keep documentation as to the effective date and rates that they use. *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.

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	Fire following rating factor for SFP states
Commercial Umbrella	UM 0755 05 03*	Refer to company	UM 0765 05 03*	N/A
* Special version of endorsement applies.
AAIS Advisory Effective Date: 1/6/03
AAIS Filing Number(s): AAIS-2002-84
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 are not required to submit filings to the Insurance Department for commercial or farm umbrella rating information. However, companies should keep documentation as to the effective date and rating information that they use. *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

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.

NEW AND RENEWAL BUSINESS

Posting date: 2/11/03, 5/15/03 (addl. info)
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
Agricultural Output	CL 0640 12 02	CL 0660 12 02
Artisans	AP 0740 12 02	AP 0760 12 02
Businessowners	BP 0790 12 02	BP 0810 12 02
Commercial Inland Marine (filed classes)	CL 0630 12 02	CL 0650 12 02
Commercial Liability	GL 0270 12 02	GL 0280 12 02
Commercial Output	CL 0640 12 02	CL 0660 12 02
Commercial Output XL	CL 0640 12 02	CL 0660 12 02
Commercial Properties	CL 0640 12 02	CL 0660 12 02
Contractors & Developers Output	CL 0640 12 02	CL 0660 12 02
Crime	CL 0630 12 02	CL 0650 12 02
Farm Properties	FL 0640 12 02	FL 0660 12 02
Farmowners	FO 0640 12 02	FO 0660 12 02
Glass	CL 0630 12 02	CL 0650 12 02
Personal & Premises Liability (Farm Only)	GL 0330 12 02	GL 0340 12 02
AAIS Effective Date: 7/1/03
AAIS Filing Number(s): AAIS-2002-83COM (All programs shown above except Farm Properties, Farmowners, and Personal & Premises Liability)
AAIS-2002-83FARM (Farm Properties, Farmowners, and Personal & Premises Liability)

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

Rules are not subject to filing requirements in Illinois.

Companies affiliated for rules can adopt the manual supplement without notifying the insurance department. However, companies should keep documentation as to the effective date and rules that they use.

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 12 02	UM 0785 12 02
Farm Umbrella	UM 0350 12 02	UM 0360 12 02
AAIS Advisory Effective Date: 4/1/03
AAIS Filing Number(s): AAIS-2002-85
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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