The AAIS War and Terrorism Exclusions endorsements described in the Reference Bulletin have been further revised. This bulletin and the attached endorsements have been posted to the AAIS open web site at www.AAISonline.com. The Reference Bulletin is no longer available at www.AAISonline.com.

BACKGROUND -- PREVIOUS AAIS FILING ACTION

During the first weeks of 2002, AAIS filed commercial lines war and terrorism exclusions endorsements that were intended to comply with the exclusionary language and thresholds recommended by the NAIC. Similar war and terrorism exclusions endorsements were subsequently filed for the farm-related lines.

Since that time, some states have interpreted the AAIS exclusionary language to be more restrictive than the language sanctioned by the NAIC. The AAIS war and terrorism exclusions have been further revised to address such concerns and to ensure that the AAIS endorsements will be acceptable in all states that have agreed to accept the NAIC-sanctioned language. 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 -- WAR, MILITARY ACTION, AND TERRORISM EXCLUSIONS

Each endorsement that now revises or introduces the war exclusion and introduces the terrorism exclusion bears the title: War, Military Action, and Terrorism Exclusions. The last four characters of each endorsement number have been changed from 02 02 to 03 02; the first six characters of each endorsement number remain unchanged. A table that identifies the latest endorsement being filed for each line of insurance appears below:

AAIS FILING ACTION

The endorsements attached to this bulletin are being filed to replace the endorsements listed in the Reference Bulletin. The proposed effective date remains February 1, 2002, wherever permitted. We are not pursuing the approval of terrorism exclusions in the states of California, Florida, Texas, or New York at this time, based on the positions currently established by the insurance departments in those states.

The endorsements identified in the "No Fire Exception" column in the table on Page 1 of this bulletin are being filed only in the jurisdictions listed below. The endorsements identified in the "Fire Exception" column in the table above are being filed in all other jurisdictions, except California, Florida, New York, and Texas.

* Special editions required in this state

COMPANY ACTION

Information regarding state approvals of the endorsements described in this bulletin will be posted on the AAIS open web site at www.AAISonline.com. Status reports will summarize any company action required to adopt the AAIS filing and provide information regarding effective dates, filing numbers, and special state requirements. State-specific bulletins will be issued to announce approval of the War, Military Action, and Terrorism Exclusions endorsements only when it is necessary to convey more information than can be included in the web site status reports.

ATTACHMENTS

FL 0450 03 02, War, Military Action, and Terrorism Exclusions
FL 0451 03 02, War, Military Action, and Terrorism Exclusions
FO 0450 03 02, War, Military Action, and Terrorism Exclusions
FO 0451 03 02, War, Military Action, and Terrorism Exclusions
GL 0990 03 02, War, Military Action, and Terrorism Exclusions
UM 0125 03 02, War, Military Action, and Terrorism Exclusions

Direct Questions to:

Deborah Summerlin, CPCU
Vice President, Insurance Lines
debis@AAISonline.com