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VIRGINIA

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: 1/3/03, 1/10/03 (addl. info), 2/21/03 (revised endrsmnts posted), 2/27/03 (addl info), 6/2/03 (addl info), 10/24/03 (ed. dates updated)

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)
Agricultural Output

CL 0600 03 03*

.0175

CL 0610 03 03*
Artisans

AP 0700 03 03*

.0200

AP 0710 05 03*
Businessowners

BP 0750 03 03*

.0175

BP 0760 05 03*
Commercial Inland Marine (filed classes)

CL 0600 03 03*

.0175

CL 0610 03 03*
Commercial Liability

GL 0250 03 03*

.0200

GL 0260 03 03*
Commercial Output

CL 0600 03 03*

.0175

CL 0610 03 03*
Commercial Output XL

No Program Currently On File
Commercial Properties

CL 0600 03 03*

.0175

CL 0610 03 03*
Commercial Umbrella

UM 0755 03 03*

Refer to company

UM 0765 03 03*
Contractors & Developers Output

CL 0600 03 03*

.0175

CL 0610 03 03*
Crime

CL 0600 03 03*

.0175

CL 0610 03 03*
Glass CL 0600 03 03* .0175 CL 0610 03 03*
*Special version of endorsement applies.
AAIS Effective Date: 1/3/03 (AAIS-2002-82 filings); 7/1/03 (AAIS-2003-16 filings)
Filing Number(s):
In the state of Virginia, Farm and Commercial Umbrella endorsements are filed on behalf of affiliated companies rather than on an advisory basis.
(Certified
Endorsements)		    
Program AAIS Filing No. BOI Number
Agricultural Output AAIS-2003-16AGF 009 0000022593
Artisans AAIS-2003-16APF 013 0000032564
Businessowners AAIS-2003-16BPF 013 0000032563
Commercial Inland Marine (Filed Classes) AAIS-2002-82CIMF 015 0000011688
Commercial Liability AAIS-2002-82CLF 017 0000049782
Commercial Output AAIS-2003-16COPF 009 0000022592
Commercial Properties AAIS-2003-16CPF 009 0000022588
Commercial Umbrella AAIS-2002-84CUP 017 0000049707
Contractors & Developers Output AAIS-2003-16DOPF 009 0000022646
Crime AAIS-2002-82CRF 026 0000005192
Glass AAIS-2002-82GSF 025 0000000728
(Certified Rules and
Rating Information)*		    
Program AAIS Filing No. BOI Number
Agricultural Output AAIS-2003-16AGR 009 0000022589
Artisans AAIS-2003-16APR 013 0000032566
Businessowners AAIS-2003-16BPR 013 0000032565
Commercial Inland Marine (Filed Classes) AAIS-2003-16CIM 015 0000012069
Commercial Liability AAIS-2003-16CL 017 0000051544
Commercial Output AAIS-2003-16COPR 009 0000022591
Commercial Properties AAIS-2003-16CPR 009 0000022590
Commercial Umbrella Not Applicable Not Applicable
Contractors & Developers Output AAIS-2003-16DOPR 009 0000022647
Crime AAIS-2003-16CR 026 0000005409
Glass AAIS-2003-16GS 025 0000000742

*To adopt the entire Rules Supplement, reference the preceding file numbers, as well as those shown, in the Non-Certified loss portion of the webiste.

Company Action:

Endorsements

Companies that have granted AAIS filing authority for forms and endorsements can adopt the endorsements without notifying the insurance department.

Rules (All programs other than Commercial Umbrella and Farm Umbrella)

Companies that have granted AAIS filing authority for rules can adopt updated pages 1-4 of the Virginia Terrorism Losses -- Rules Supplement without notifying the insurance department, provided that no content-related changes are made to the AAIS pages.

Companies that have granted AAIS filing authority for rules that choose to depart from the AAIS filed pages, or that choose not to adopt the revised Supplement pages are obligated to notify the insurance department in writing as soon as possible.
Rating Information (All programs other than Commercial Umbrella and Farm Umbrella)
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.
 
Commercial Umbrella and Farm Umbrella Rating Information
Companies are also required to file Umbrella rating information in this state, but only with respect to risks that fail to meet the minimum requirements for underlying insurance set forth by Administrative Order No. 10208 which is summarized below.
 
Umbrella rule and rating information filings are not required if the limits of underlying insurance are at least $350,000 per occurrence for bodily injury and property damage on a combined single limit basis (or $100/300/50 for bodily injury and property damage on a split limit basis) for owned autos and for all general liability exposures. Underlying limits for personal liability and watercraft liability must be at least $100,000 per occurrence.
 
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 NOT required to place them on file.
Separate Line Item Disclosure Endorsement (CL 0605 02 03)
Effective Date: 2/11/03 (all programs except AAIS-2003-3COP2F & AAIS-2003-3COP2R)

4/1/03 (AAIS-2003-3COP2F & AAIS-2003-3COP2R only)
Filing Numbers:
(Endorsements)
Program AAIS Filing No. BOI Number
Agricultural Output AAIS-2003-3AGF 009 0000021995
Artisans AAIS-2003-3APF 009 0000022064
Businessowners AAIS-2003-3BPF 013 0000031913
Commercial Inland Marine (Filed Classes) AAIS-2003-3CIMF 015 0000011757
Commercial Liability AAIS-2003-3CLF 017 0000050273
Commercial Output (eff. until 4/1/03) AAIS-2003-3COPF 009 0000021993
Commercial Output (eff. 4/1/03) AAIS-2003-3COP2F 009 0000021994
Commercial Properties AAIS-2003-3CPF 009 0000021992
Commercial Umbrella AAIS-2003-4CUP 017 0000050269
Contractors & Developers Output AAIS-2003-3DOPF 009 0000022062
Crime AAIS-2003-3CRF 026 0000005254
Glass AAIS-2003-3GSF 025 0000000737
(Rules)    
Program AAIS Filing No. BOI Number
Agricultural Output AAIS-2003-3AGR 009 0000021990
Artisans AAIS-2003-3APR 009 0000022063
Businessowners AAIS-2003-3BPR 013 0000031908
Commercial Inland Marine (Filed Classes) AAIS-2003-3CIMR 015 0000011756
Commercial Liability AAIS-2003-3CLR 017 0000050270
Commercial Output (eff. until 4/1/03) AAIS-2003-3COPR 009 0000021988
Commercial Output (eff. 4/1/03) AAIS-2003-3COP2R 009 0000021991
Commercial Properties AAIS-2003-3CPR 009 0000021989
Commercial Umbrella Not applicable Not applicable
Contractors & Developers Output AAIS-2003-3DOPR 009 0000022065
Crime AAIS-2003-3CRR 026 0000005253
Glass AAIS-2003-3GSR 025 0000000738

 

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: 2/21/03, 2/27/03 (addl. info), 3/17/03 (addl. info), 4/29/03 (addl. info), 5/8/03 (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 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 No Program Currently On File
Commercial Properties CL 0640 12 02 CL 0660 12 02
Commercial Umbrella UM 0775 12 02 UM 0785 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
Farm Umbrella UM 0350 12 02 UM 0360 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: 4/1/03
Filing Number(s): In the state of Virginia, Farm and Commercial Umbrella endorsements are filed on behalf of affiliated companies rather than on an advisory basis.
(Endorsements)    
Program AAIS Filing Number BOI Number
Agricultural Output AAIS-2002-83AGF 009 0000022029
Artisans AAIS-2002-83APF 013 0000031969
Businessowners AAIS-2002-83BPF 03 0000031970
Commercial Inland Marine (Filed Classes) AAIS-2002-83CIMF 015 0000011798
Commercial Liability AAIS-2002-83CLF 017 0000050360
Commercial Output (eff. 4/1/03) AAIS-2002-83COPF 009 0000022028
Commercial Properties AAIS-2002-83CPF 009 0000022027
Commercial Umbrella AAIS-2002-85CUP 017 0000050358
Contractors & Developers Output AAIS-2002-83DOPF 009 0000022026
Crime AAIS-2002-83CRF 026 0000005270
Farm Properties AAIS-2002-83FPF 011 0000002805
Farmowners AAIS-2002-83FOF 011 0000002806
Farm Umbrella AAIS-2002-85FUP 017 0000050646
Glass AAIS-2002-83GSF 025 0000000739
Personal & Premises Liability (Farm Only) AAIS-2002-83PPLF 017 0000050359
(Rules)    
Program AAIS Filing Number BOI Number
Agricultural Output AAIS-2002-83AGR 009 0000022032
Artisans AAIS-2002-83APR 013 0000031972
Businessowners AAIS-2002-83BPR 013 0000031971
Commercial Inland Marine (Filed Classes) AAIS-2002-83CIMR 015 0000011799
Commercial Liability AAIS-2002-83CLR 017 0000050362
Commercial Output (eff.  4/1/03) AAIS-2002-83COPR 009 0000022031
Commercial Properties AAIS-2002-83CPR 009 0000022030
Commercial Umbrella Not Applicable Not Applicable
Contractors & Developers Output AAIS-2002-83DOPR Not Yet Available
Crime AAIS-2002-83CRR 026 0000005271
Farm Properties AAIS-2002-83FPR 011 0000002807
Farmowners AAIS-2002-83FOR 011 0000002808
Farm Umbrella Not Applicable Not Applicable
Glass AAIS-2002-83GSR 025 0000000740
Personal & Premises Liability (Farm Only) AAIS-2002-83PPLR 017 0000050361
Effective Date: 4/1/03
Company action:

Endorsements (All program s other than Inland Marine Guide)

Companies that have granted AAIS filing authority for forms and endorsements can adopt the endorsements without notifying the insurance department.

Endorsements (Inland Marine Guide)

In Virginia, companies are required to file endorsements for certain non-filed inland marine classes. Companies affiliated for the Inland Marine Guide must make an independent filing to use the non-certified terrorism endorsements (CL 0630 12 02 and CL 0650 12 02) for the Bailee Customers Floater and Motor Truck Cargo classes.

For the non-filed inland marine classes other than Bailee Customers Floater and Motor Truck Cargo, companies can adopt the endorsements without notifying the insurance department.

Note: The non-certified terrorism endorsements are not available for use with the Inland Marine Guide Yacht class.

Companies are advised to refer to Administrative Letter 2002-15, Dec. 18, 2002, for the filing requirements that apply to terrorism-related filings in Virginia.
Comments:

Manual rules that address the use of the various non-certified terrorism endorsements were filed in conjunction with the endorsements that exclude loss caused by non-certified acts of terrorism. The rules filed indicate that the Commercial Inland Marine program (Filed Classes) is not subject to the Standard Fire Policy statutes that apply to policies providing property coverage for loss caused by fire. 

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