TEXAS
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.

NEW AND RENEWAL BUSINESS 
Posting date: 12/10/03, 1/5/04, 3/1/04, 6/7/04

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 
Farm Properties

No Program On File
Farmowners FO 0600 01 04 .0275 FO 0610 01 04

N/A
Personal & Premises Liability (Farm Only)

No Program On File
AAIS Effective Date: 1/6/04
Filing Number(s): AAIS File No. State File No.
     Endorsements AAIS-2003-62FOC TDI 9212444253; Link No. 71430
  AAIS-2003-62FOE TDI 9212444252; Link No. 71429
     Rating Information AAIS-2003-62FOR TDI 9212444254; Link No. 71431
Company action:

Endorsements (All programs listed except Inland Marine Guide and Commercial Output - XL)

Affiliated companies can adopt the endorsements by establishing an effective date and submitting the necessary reference filing(s) to the Texas Department of Insurance.

In addition, due to special Texas guidelines, the AAIS Farmowners and Farm Umbrella endorsements were placed on file for use with commercial farm risks only (i.e., filed as commercial multi-peril and used when form GL-610 or UM 0610 is attached). Companies will need to file separate adoptions if they also wish to use the endorsements when writing personal farm risks (with form GL-2 or UM 0002).

Rating Information

Affiliated companies can adopt the rating information by establishing an effective date and submitting the necessary reference filing(s) to the Texas Department of Insurance. However, the following guidelines must also be followed for rating information filings:

1. Companies must attest that no rate changes have been taken since 9/11/2001 to account for terrorism or an increased exposure to terrorism.

2. Companies must attest that increased costs for reinsurance as a result of terrorism or an increased exposure to terrorism have not been passed on to their policyholders through increased rates, deviations, loss costs, or loss cost multipliers.

3. If a company has implemented any rate change(s) since 9/11/2001, they must provide the date(s) and amount(s) of their rate change(s) along with their attestations from the above items.

4. Companies filing surcharges may be required to submit actuarial support for the surcharges.

Separate Line Item Disclosure Endorsement: (CL 0605 02 03)

 

AAIS File No.

State File No(s).

Program

 

 

       Farmowners

 AAIS-2003-3FO

TDI 9212435021; Link No. 67117

Effective Date: 2/11/03

Company Action:

Affiliated companies can adopt the endorsements by establishing an effective date and submitting the necessary reference filing(s) to the Texas Department of Insurance.

 

Posting date: 11/12/03, 11/19/03, 11/25/03, 12/1/03, 1/5/04, 3/1/04, 6/7/04  

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 
Farm Umbrella

UM 0330 01 04

Refer to company

UM 0340 01 04

N/A
AAIS Advisory Effective Date: 1/1/04
Coverage Endorsement  Filing
Number(s): AAIS-2003-57C		 TDI Number: TDI 9212443629; Link No. 71098
Exclusion Endorsement  Filing
Number(s): AAIS-2003-57E		 TDI Number: TDI 9212443628; Link No. 71097
Company action: Affiliated companies can adopt the endorsements by establishing an effective date and submitting the necessary reference filing(s) to the Texas Department of Insurance. In addition, due to special Texas guidelines, the AAIS Farm Umbrella endorsements were placed on file for use with commercial farm risks only (i.e., filed as commercial multi-peril and used when form UM 0610 is attached). Companies will need to file separate adoptions if they also wish to use the endorsements when writing personal farm risks (with form UM 0002).

Companies must submit related rating information independently. When doing so, the following guidelines must be followed:

1.

Companies must attest that no rate changes have been taken since 9/11/2001 to account for terrorism or an increased exposure to terrorism.

 2.

Companies must attest that increased costs for reinsurance as a result of terrorism or an increased exposure to terrorism have not been passed on to their policyholders through increased rates, deviations, loss costs, or loss cost multipliers.
3. If a company has implemented any rate change(s) since 9/11/2001, they must provide the date(s) and amount(s) of their rate change(s) along with their attestations form the above items.
4. Companies filing surcharges may be required to submit actuarial support for the surcharges.

Separate Line Item Disclosure Endorsement: (CL 0605 02 03)

 

AAIS File No.

TDI No.

Program

 

 

       Farm Umbrella

 AAIS-2003-4FUP

TDI 9212435163; Link No. 67161

Effective Date: 2/11/03

Company Action:

Affiliated companies can adopt the endorsements by establishing an effective date and submitting the necessary reference filing(s) to the Texas Department of Insurance.

 

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