**This bulletin and its attachments have been made available at the AAIS open Web site: AAISonline.com. This bulletin will not be distributed in a paper format.**

VIRGINIA 
INTERSTATE ACCOUNTS RULE IN TERRORISM SUPPLEMENT REVISED
Reference Bulletin 02-0550

The multistate version of the Interstate Accounts rule, shown in the sample SFP Terrorism Loss Rules Supplement attached to Bulletin 02-0550, has been replaced in Virginia by a more detailed, state-specific Interstate Accounts rule. A copy of the updated Virginia supplement is attached to this Bulletin.

CHANGE

 At the request of the Virginia Bureau of Insurance (BOI), the multistate Interstate Accounts rule has been revised to expressly state how coverage for Virginia risks and multistate risks must be written. Specifically, the new rule shown on page Rules - 9 indicates that when the policy is endorsed to address terrorism, the policy cannot cover property located in Virginia and in any other state unless the terrorism endorsements and rating information (if rating information is applicable) that apply in Virginia, also apply in each state where covered property is located.

COMPANY ACTION

Manual Rules

Companies that have granted AAIS filing authority for rules can adopt the updated Interstate Accounts rule without notifying the insurance department, provided that no content-related changes are made to the AAIS rule.

Companies that have granted AAIS filing authority for rules that choose to depart from the AAIS filed rule, or that choose not to adopt the Virginia Interstate Accounts rule, must notify the insurance department in writing as soon as possible.

Refer to the following AAIS filing numbers in any correspondence directed to the Bureau of Insurance (BOI).

FILING NUMBERS

SUPPLIES

The Virginia Terrorism rules manual supplement has been updated to include the new Interstate Accounts rule. The updated supplement will be included in all future orders filled for AAIS manuals, and in the AAIS manuals posted at the subscriber Web site, AAISdirect.com.

ATTACHMENT

--    Virginia Terrorism Loss Rules Supplement (Rules-1 through Rules-9)

Direct Questions to:

Edie Gardner, CPCU
Product Development Specialist
edieg@AAISonline.com

 Copyright, American Association of Insurance Services, Inc., 2003