INLAND MARINE GUIDE (Traditional Non-Filed Classes)
WAR, MILITARY ACTION, AND TERRORISM EXCLUSIONS
AVAILABILITY REPORT
July 8, 2002 

The AAIS war and terrorism exclusions have been further revised in order to address concerns regarding language interpretation and to ensure that the AAIS endorsements will be acceptable in all states that have agreed to accept the NAIC-sanctioned language. Per Bulletin 02-0075, the latest endorsements eliminate any question as to whether coverage provided under the AAIS war and terrorism terms is equivalent to that provided under the NAIC-sanctioned language. Endorsements CL 0468 01 02 with "No Fire Exception" and CL 0469 01 02 with a "Fire Exception" are compatible for use with the traditional non-filed Inland Marine classes (AAIS Inland Marine Guide). 

AAIS will make advisory filings for the revised War, Military Action, and Terrorism Exclusions in the states of Nebraska, Oregon, and Texas for the non-filed Inland Marine classes currently on file. AAIS is not currently pursuing the approval of a terrorism exclusion in California, Florida, and New York. 

AAIS recommends waiting until approval of the War, Military Action, and Terrorism Exclusions endorsement submitted for the Commercial Inland Marine Program (filed classes) before implementing the same endorsement for the traditional non-filed classes in states where there is no filing requirement or before filing in those additional states, where required. 

For your convenience, the states that require filing for the traditional non-filed inland marine classes are listed below under Company Action.

AVAILABLE FOR USE
When the revised War, Military Action, and Terrorism Exclusions Endorsement filed for use with the Commercial Inland Marine Program (CIM) has received state approval, AAIS will indicate that it is available for use in that state with the Inland Marine Guide on this report. Expedited filing requirements for War, Military Action, and Terrorism exclusions, if applicable, will be provided for those states where filing is required for the non-filed inland marine classes. 

  • After the state name, a footnote (1) indicates that the terrorism exclusion makes no exception for loss caused by fire. Footnote (2) indicates that the terrorism exclusion does make an exception for loss caused by fire. 

  • An "A" in the availability column of this status report indicates that the Commercial Inland Marine (CIM) Program (filed classes) War, Military Action, and Terrorism Exclusions filing has been approved in that state and is now available for use or filing for the Inland Marine Guide. 

  • A "Yes" or "No" in the Filing Required field indicates whether or not a filing is required for non-filed inland marine classes in that state. 

  • Under Special State Requirements/ Comments, state specific requirements will be provided. 

Most states have indicated that approval of terrorism exclusions will be granted only to the extent that the exclusions will 'sunset' or be withdrawn shortly after a federal mechanism is established to provide reinsurance for loss caused by acts of terrorism. This "conditional approval" will likely also apply to an independent filing of the War, Military Action and Terrorism Exclusions Endorsement.

COMPANY ACTION
For those states where filing is not a requirement for non-filed Inland Marine classes, War, Military Action, and Terrorism Exclusions can be implemented as soon as allowed taking into consideration state notification requirements as respects a reduction in coverage. 

In the event of loss caused by terrorism, coverage under any policy to which a 12 01 edition War and Terrorism Exclusions endorsement had been attached should be interpreted according to the terms of corresponding 01 02 edition of the same endorsement. 

The states that require filing for the traditional non-filed inland marine classes are listed below. If you have already filed the 12 01 editions in one or more states, AAIS recommends that you file the 01 02 editions to replace the 12 01 editions.

Arkansas

Louisiana

Oklahoma

Washington

California

Montana

Oregon #

West Virginia

District of Columbia

Nebraska * #

Puerto Rico

Wisconsin

Hawaii**

Nevada

South Carolina

 

Illinois

New Mexico

Texas* #

 

Iowa

New York *

Vermont

Minnesota**

Kansas

North Dakota

Virginia*

 

* Indicates a state that only requires the filing of specific classes
# AAIS will file the War and Terrorism exclusion on an advisory basis for the non-filed IM classes on file 
**Hawaii and Minnesota have special filing requirements for use of the War, Military Action, and Terrorism Exclusion with the traditional non-filed IM classes. 

For typical filing requirements, refer to the AAIS State Filings Guide. In most instances, companies will need to complete an Expedited Filing - Commercial Lines Terrorist Exclusions Application with their filing. Companies should also follow any other special state requirements that have been identified on the status report.

EXPEDITED FILING - COMMERICAL LINES TERRORIST EXCLUSIONS APPLICATION

Where required, companies must also include a completed Expedited Filing - Commercial Lines Terrorist Exclusions Application (Exp Filing Application) in their filings. When completing the application, companies should indicate that the endorsement(s) provide coverage that is at least as broad as the ISO endorsement(s). While a model application was developed by the NAIC, many states have customized the application to meet their specific state requirements. Refer to the Special State Requirements/Comments column for details. 

Direct Questions To:
Alma Gordon-Smith, Manager, Inland Marine at almag@AAISonline.com, or Sue Hiller, Manager, State Filings at sueh@AAISonline.com if you have questions regarding the information provided. 

SUPPLIES

The endorsements listed in this report have been released to Uniform Information Services, Inc. (UIS), the print vendor of AAIS forms and endorsements in paper printed format. Call UIS at 800/382-2424 to order AAIS forms and endorsements in paper printed format. Call UIS at 800/782-9481 to order the text of AAIS forms and endorsements in a variety of electronic formats.

Companies may also print the approved endorsements from the website at AAISonline.com.

STATE AMENDATORY ENDORSEMENTS LISTING

Once this report has been updated to reflect the availability of the applicable war, military action, and terrorism Exclusions Endorsement in a state, the state amendatory endorsements listing will be modified accordingly. An updated State Amendatory Endorsement Listing reflecting the addition of the applicable war, military action and terrorism exclusions will be posted on AAISdirect.com and will otherwise be available upon request to AAIS affiliates once processing is complete.

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CL 0468 01 02, War, Military Action, and Terrorism Exclusions
 
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CL 0469 01 02, War, Military Action, and Terrorism Exclusions
 

 

State

A = Available for use or filing, if required

Filing Required for Non-Filed IM
Yes / No

Special State
Requirements / Comments
Alabama (1)

A

No

 AL Bulletin dated 12/26/01

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Alabama section.
Alaska (1)

A

No

 Alaska Bulletin B 02-03 dated 12/31/01.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Alaska CIM section.
Arizona (2)

A

No

 No AZ guidelines issued at time of report

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Arizona section.
Arkansas (1)

A

Yes

 AR DOI Bulletin 1-2002 dated 01/09/02

All companies must file the Expedited Filing Application (NAIC version) and follow guidelines provided in bulletin.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Arkansas section.
California (2)

See Special State Requirements

n/a

Yes

 On the basis of Ins §1855.5, the Commissioner has determined that rating organization filings for terrorism exclusions will be disapproved as unfair or unreasonable.

However, individual insurers are not statutorily prohibited from filing such exclusions. Company filings must include the required rate and form filing applications and must recognize the rate impact of any change in coverage that results from the proposed exclusions.
Colorado (1)

A

No

No Colorado guidelines issued at time of report.

No filing action required to adopt forms in this state.
Connecticut (2)

A

No

CT Bulletin PC-50 dated 01/03/02

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Connecticut section.
Delaware (1)

A

No

 No state guidelines issued at time of report

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Delaware section.
District of
Columbia (1)

A

Yes

 DC Bulletin 01-LG-005-12/26, dated 12/26/01 from Insurance Commissioner.

Use Expedited Filing Application, NAIC model version and follow guidelines provided in bulletin.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, District of Columbia section.
Florida (1)  

No

Based upon the position established by the FL Department of Insurance, AAIS is not pursuing approval of a terrorism exclusion for filed insurance lines at this time.
Georgia (2)      
Hawaii (2)

A

Yes; Companies are required to file Terrorism Exclusions only for non-filed IM classes. There is no requirement to file IMG coverage forms and endorsements or rates/rules.

HI Memorandum 2001-26R dated 12/26/01

All companies must file the HI Expedited Filing Application and follow guidelines provided in bulletin. Note on the Expedited Filing Application that you are filing an IM class that is exempt per 431:14-104.

See HI Memorandum 2001-26R, Amendment 2 issued 4/30/02 which allows companies to file to extend the approval date through 01/01/03. (Previously, filing approvals were valid only through June 1, 2002 ) Companies must request the extension through 01/01/03 in writing and include a copy of the previous approval letter/transmittal valid through 6/01/02.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Hawaii section.

Idaho (2)

A

No

 No ID guidelines issued at time of report.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Idaho section.

Illinois (2)

A

Yes

IL Bulletin CB 2001-11 dated 12/31/01.

No special terrorism exclusion filing application required. However, ALL companies should refer to IL Bulletin CB 2001-11 which lists extensive filing and disclosure requirements that must be met.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Illinois section.
Indiana (1)

A

No

DOI Bulletin 107 dated 01/10/02

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Indiana section.
Iowa (2)

A

Yes

IA Bulletin 01-03 dated 12/26/01

Use IA Expedited Filing Application and follow guidelines provided with bulletin.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Iowa section.
Kansas (1)

A

Yes

KS Bulletin 2002-1 dated 01/23/02

Use KS Expedited Filing Application and follow guidelines provided with bulletin.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Kansas section.
Kentucky (1)

A

No

No KY guidelines issued at time of report.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Kentucky CIM section.
Louisiana (2)

A

Yes

LDI Notice to Insurers On The Use Of Terrorism Exclusions dated 12/21/01

No special filing application for terrorism exclusions

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Louisiana section.
Maine (2)

A

No

No ME guidelines issued at time of report.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Maine section.
Maryland (1)

A

No

DOI Bulletin Property and Casualty 02-02 dated 12/21/01

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Maryland CIM section.
Massachusetts (2)

A

No

No MA guidelines issued at time of report.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Massachusetts section.
Michigan (2)

A

No

No MI guidelines issued at time of the report.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Michigan CIM section.
Minnesota (2)

A

Yes; Special State Requirements for Commercial Lines of Insurance Not Subject to Regulatory Review

 

There is no requirement to file IMG coverage forms and endorsements or rates/rules.

DOI bulletin dated 01/16/02 Re: Exclusions for Acts of Terrorism & Sworn Statement of Inability to Obtain Reinsurance for Damages Resulting from Acts of Terrorism

For commercial lines of insurance that are NOT required to be filed with the Department, companies must make internal (drawer) filings for terrorism exclusions, pursuant to Minnesota Rules 2700.2460 through 2700.2480.

ALL companies must file Form RCT-1, Sworn Statement, if they wish to use terrorism exclusions regardless of applicable form filing requirements.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Minnesota CIM section.
Mississippi (1)

A

No

No Mississippi guidelines issued at time of report.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Mississippi section.
Missouri (2) A No No MO guidelines issued at time of report.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Missouri CIM section.
Montana (1) A Yes No MT guidelines issued at time of report.

No Expedited Filing Application required. However, company filings must include a copy of terrorism exclusion from the company's reinsurance contract.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Montana section.
Nebraska (2)

A

Yes; only requires filing of specific IM classes

 AAIS will file the War, Military Action, and Terrorism Exclusions on an advisory basis for use with the Inland Marine Guide.

No Expedited Filing Application required; additional guidelines provided with Bulletin CB-103 dated 12/ 27/01.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Nebraska section.
Nevada (1)

A

Yes

Bulletin 01-011 dated 12/26/01. In addition, state has asked that we remind companies about notification to insured requirements in accordance with NRS 687B.350.

Use NV Expedited Filing Application and follow guidelines provided with bulletin.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Nevada section.
New Hampshire (2)

A

No

NH Bulletin PC-50 dated 01/03/02

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, New Hampshire section.
New Jersey (2)

A

No

NJ Bulletin NO. 02-02 dated 01/08/02

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, New Jersey section.
New Mexico (1)

A

Yes

 No NM guidelines issued at time of report.

No special filing application required.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, New Mexico section.
New York (2)  

Yes; only requires filing of specific IM classes

Based upon the position established by the NY Department of Insurance, AAIS is not pursuing approval of a terrorism exclusion for filed insurance lines at this time.
North Carolina (2)

A

No

 DOI Bulletin dated 01/07/02

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, North Carolina section.
North Dakota (2)

A

Yes

 

 For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, North Dakota section.

No ND guidelines issued at time of report.

No special filing application is required.
Ohio (1)

A

No

OH Department Memorandum dated 01/04/02

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Ohio CIM section.
Oklahoma (2) A Yes No Oklahoma guidelines issued at time of report.

No special filing application.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Oklahoma COM section.
Oregon (2) A Yes AAIS will file the War, Military Action, and Terrorism Exclusions on an advisory basis for use with the Inland Marine Guide.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Oregon section.

OR Bulletin INS 2001-10 dated 12/26/01

To submit a War and Terrorism Exclusion filing, use OR Expedited Filing Application and follow guidelines provided with bulletin.
Pennsylvania (2)

A

No

 For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Pennsylvania section.

No PA guidelines issued at time of report.

Puerto Rico (1) A Yes No Puerto Rico guidelines issued at time of report.

No special filing application.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Puerto Rico section.
Rhode Island (2) A No Rhode Island Bulletin 2002-2 dated 01/10/02

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Rhode Island section.
South Carolina (1) A Yes No SC guidelines issued at time of approval.

No Expedited Filing Application required.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, South Carolina CIM section.
South Dakota (1)

A

No

SD requirements published on their website, as follows: All companies that intend to use terrorism exclusions must file "written proof from their reinsurers that they are not able to accept this risk."

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, South Dakota section.
Tennessee (1)

A

No

 No TN guidelines issued at time of report.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Tennessee section.
Texas (2)      
Utah (1)

A

No

 DOI Bulletin 2002-1 dated 1-1-02

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Utah CIM section.
Vermont (1)

A

Yes

 VT Bulletin 137 dated 1/1/02.

ALL companies should refer to VT Bulletin 137 which lists extensive filing and disclosure requirements that must be met. In addition, the state of Vermont has advised that when following the guidelines of Bulletin 137, it is acceptable for companies to delete any references to "ISO" in such bulletin and insert "AAIS" in its place.

No special filing application required, but follow guidelines provided with bulletin.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Vermont CIM section.
Virginia (2)

A

Yes; only requires the filing of specific classes

No VA guidelines issued at time of this report for AAIS exclusion endorsements. VA Bulletin dated 12-27-01 does not address the use of AAIS exclusion endorsements.

In the near future, a separate AAIS Bulletin will be released with information regarding approval of war, military action, and terrorism related rules in this state for the filed inland marine classes.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Virginia section.
Washington (2)

A

Yes

 For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Washington COM2 section.

WA Bulletin published on website.

No special filing application for terrorism exclusions.
West Virginia (2) A Yes No WV guidelines issued at time of report.

No special filing application.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, West Virginia section.
Wisconsin (2) A Yes No WI guidelines issued at time of report.

No special filing application for terrorism exclusions.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Wisconsin section.
Wyoming (1)

A

No

 No WY guidelines issued at time of report.

For CIM Program (filed classes) approval information, refer to the War, Military Action, and Terrorism Exclusions Commercial Lines Status Report, Wyoming section.

(Without fire exception
(2) With fire exception

A Available for use or filing, if required

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