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MICHIGAN
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: 12/31/02

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

Filing Not Required - (Use CL 0600 12 02)

.0250

Filing Not Required - (Use CL 0620 12 02)

.0088
Artisans

Filing Not Required - (Use AP 0700 12 02)

.0250

Filing Not Required - (Use AP 0720 12 02)

N/A
Businessowners

Filing Not Required - (Use BP 0750 12 02)

.0250

Filing Not Required - (Use BP 0770 12 02)

.0063
Commercial Inland Marine (filed classes)

Filing Not Required - (Use CL 0600 12 02)

.0250

Filing Not Required - (Use CL 0620 12 02)

.0088
Commercial Liability

Filing Not Required - (Use GL 0250 12 02)

.0250

Filing Not Required - (Use GL 0260 12 02)

N/A
Commercial Output

Filing Not Required - (Use CL 0600 12 02)

.0250

Filing Not Required - (Use CL 0620 12 02)

.0088
Commercial Output XL

Filing Not Required - (Use CL 0600 12 02)

.0250

Filing Not Required - (Use CL 0620 12 02)

.0088
Commercial Properties

Filing Not Required - (Use CL 0600 12 02)

.0250

Filing Not Required - (Use CL 0620 12 02)

.0088
Contractors & Developers Output

Filing Not Required - (Use CL 0600 12 02)

.0250

Filing Not Required - (Use CL 0620 12 02)

.0088
Crime

Filing Not Required - (Use CL 0600 12 02)

.0250

Filing Not Required - (Use CL 0610 12 02)

N/A
Farm Properties

Filing Not Required - (Use FL 0600 12 02)

.0250

Filing Not Required - (Use FL 0620 12 02)

.0088
Farmowners

Filing Not Required - (Use FO 0600 12 02)

.0250

Filing Not Required - (Use FO 0620 12 02)

.0063
Glass

Filing Not Required - (Use CL 0600 12 02)

.0250

Filing Not Required - (Use CL 0610 12 02)

N/A
Personal & Premises Liability (Farm Only)

Filing Not Required - (Use GL 0310 12 02)

.0250

Filing Not Required - (Use GL 0320 12 02)

N/A
AAIS Effective Date: 12/31/02
Rating Information Filing Number(s):
Program AAIS Filing No.
Agricultural Output AAIS-2002-82AGR
Artisans AAIS-2002-82APR
Businessowners AAIS-2002-82BPR
Commercial Inland Marine (Filed Classes) AAIS-2002-82CIMR
Commercial Liability AAIS-2002-82CLR
Commercial Output AAIS-2002-82COPR
Commercial Properties AAIS-2002-82CPR
Contractors & Developers Output AAIS-2002-82DOPR
Crime AAIS-2002-82CRR
Farm Properties AAIS-2002-82FPR
Farmowners AAIS-2002-82FOR
Glass AAIS-2002-82GSR
Personal & Premises Liability (Farm Only) AAIS-2002-82PPLR
Company action:
Endorsements
Companies are not required to file forms in this state. However, companies should keep documentation as to the effective date of the forms and endorsements that they use.
 
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, including a decision not to adopt the 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:

In Michigan, forms and endorsements for the programs shown in the table above are deregulated. As a result, filings are not required.

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 NOT required to place them on file for informational purposes.
Separate Line Item Disclosure Endorsement (CL 0605 02 03)

AAIS Filing No.: Not Applicable -- Companies Not Required to File Forms

Effective Date: 2/11/03

Company Action: Companies are not required to file forms in this state. However, companies should keep documentation as to the effective date of the forms and endorsements that they use.

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

Filing Not Required - (Use UM 0755 12 02)

Refer to company

Filing Not Required - (Use UM 0765 12 02)

 N/A
Farm Umbrella

Filing Not Required - (Use UM 0330 12 02)

Refer to company

Filing Not Required - (Use UM 0340 12 02)

N/A
AAIS Advisory Effective Date: 12/31/02
AAIS Filing Number(s): Not Applicable -- Companies Not Required to File Forms
Company action:
Endorsements
Companies are not required to file forms in this state. However, companies should keep documentation as to the effective date of the forms and endorsements that they use.
 
Rating Information
Companies must 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:

In Michigan, forms and endorsements for the programs shown in the table above are deregulated. As a result, filings are not required.

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 NOT required to place them on file for informational purposes.
Separate Line Item Disclosure Endorsement (CL 0605 02 03)

AAIS Filing No.: Not Applicable -- Companies Not Required to File Forms

Effective Date: 2/11/03

Company Action: Companies are not required to file forms in this state. However, companies should keep documentation as to the effective date of the forms and endorsements that they use.

 

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: 3/13/03, 3/18/03 (addl. info)
Filings Submitted for Proposed Effective Date of: 4/1/03
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

Filing Not Required (Use CL 0640 12 02)

Filing Not Required (Use CL 0660 12 02)
Artisans

 Filing Not Required (Use AP 0740 12 02)

Filing Not Required (Use AP 0760 12 02)
Businessowners

 Filing Not Required (Use BP 0790 12 02)

Filing Not Required (Use BP 0810 12 02)
Commercial Inland Marine (filed classes)

Filing Not Required (Use CL 0640 12 02)

Filing Not Required (Use CL 0660 12 02)
Commercial Liability

 Filing Not Required (Use GL 0270 12 02)

Filing Not Required (Use GL 0280 12 02)
Commercial Output

Filing Not Required (Use CL 0640 12 02)

Filing Not Required (Use CL 0660 12 02)
Commercial Output XL

Filing Not Required (Use CL 0640 12 02)

Filing Not Required (Use CL 0660 12 02)
Commercial Properties

Filing Not Required (Use CL 0640 12 02)

Filing Not Required (Use CL 0660 12 02)
Contractors & Developers Output

Filing Not Required (Use CL 0640 12 02)

Filing Not Required (Use CL 0660 12 02)
Crime 

 Filing Not Required (Use CL 0630 12 02)

Filing Not Required (Use CL 0650 12 02)
Farm Properties

 Filing Not Required (Use FL 0640 12 02)

Filing Not Required (Use FL 0660 12 02)
Farmowners

 Filing Not Required (Use FO 0640 12 02)

Filing Not Required (Use FO 0660 12 02)
Glass

 Filing Not Required (Use CL 0630 12 02)

Filing Not Required (Use CL 0650 12 02)
Personal & Premises Liability (Farm Only)

 Filing Not Required (Use GL 0330 12 02)

Filing Not Required (Use GL 0340 12 02)
AAIS Effective Date: 4/1/03
Rule Filing Number(s):
Program AAIS Filing No.
Agricultural Output AAIS-2002-83AGR
Artisans AAIS-2002-83APR
Businessowners AAIS-2002-83BPR
Commercial Inland Marine (Filed Classes) AAIS-2002-83CIMR
Commercial Liability AAIS-2002-83CLR
Commercial Output AAIS-2002-83COPR
Commercial Properties AAIS-2002-83CPR
Contractors & Developers Output AAIS-2002-83DOPR
Crime AAIS-2002-83CRR
Farm Properties AAIS-2002-83FPR
Farmowners AAIS-2002-83FOR
Glass AAIS-2002-83GSR
Personal & Premises Liability (Farm Only) AAIS-2002-83PPLR
Company action:
Endorsements
Companies are not required to file forms in this state. However, companies should keep documentation as to the effective date of the forms and endorsements that they use.
 
Rules
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.

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. The rules filed in this state indicate that the Commercial Inland Marine program (Filed Classes) is subject to the Standard Fire Policy statutes that apply to policies providing property coverage for loss caused by fire. Accordingly, the sample SFP Terrorism Loss Rules Supplement shown with Bulletin 02-0550 at this web site is not entirely consistent with the Supplement filed in this state.

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

 Filing Not Required (Use UM 0775 12 02)

Filing Not Required (Use UM 0785 12 02)
Farm Umbrella

 Filing Not Required (Use UM 0350 12 02)

Filing Not Required (Use UM 0360 12 02)
AAIS Advisory Effective Date: 4/1/03
AAIS Filing Number(s): Not Applicable -- Companies Not Required to File Forms
Company action:

Companies are not required to file forms in this state. However, companies should keep documentation as to the effective date of the forms and endorsements that they use.

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