**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.**

ALASKA 
SPECIAL EDITIONS OF TERRORISM EXCLUSION ENDORSEMENTS AVAILABLE
Reference Bulletin 02-0550 and 03-0044

At the request of the Alaska Division of Insurance, the endorsements that AAIS initially filed to exclude loss caused by certified and non-certified acts of terrorism have been replaced.

A special 06 03 edition of each Certified and Non-certified Terrorism Exclusion endorsement has been approved for use in Alaska as a replacement for the corresponding 01 03 exclusion endorsement that was previously made available.

BACKGROUND

On January 10, 2003, AAIS filed special editions of the Certified Terrorism Exclusion endorsements in Alaska. Having received no comments or questions from the Division of Insurance by then, these endorsement editions were posted to the AAIS public web site on February 14, 2003, as attachments to Reference Bulletin 03-0044. In March, the Alaska Division of Insurance notified us of their  concerns with each of our Certified and Non-certified terrorism exclusion endorsements. In May, we filed 06 03 editions of all terrorism exclusion endorsements as replacements for the 01 03 exclusion endorsement editions originally submitted.

Unlike the 01 03 exclusion endorsements, which contained no anti-concurrent causation provisions, the 06 03 exclusion endorsements reflect anti-concurrent causation provisions written specifically to address Alaska Statute 21.36.212.

NOTE:   The 12 02 multistate endorsements attached to Reference Bulletin 02-0550 that can be used to cover loss caused by certified acts of terrorism have not been revised.

ENDORSEMENTS

A table that identifies the exclusion endorsements that apply to each Commercial Lines program filed in Alaska follows:  

FILING NUMBERS

The AAIS and state filing numbers applicable to the new 06 03 endorsement editions are listed in the following tables. Refer to these filing numbers in all correspondence directed to the Insurance Department. 

Certified Exclusion Endorsements (shown in Column 2 of the table on Page 2)

Non-Certified Exclusion Endorsements (shown in Columns 3 and 4 of the table on Page 2)

COMPANY ACTION

Certified Endorsements

Companies should begin using the new 06 03 exclusion endorsement editions in place of the 01 03 exclusion endorsement editions as soon as possible. Although companies are not required to amend policies that have already been issued to reflect the change in endorsement editions, policies that have been issued with the 01 03 exclusion endorsement editions should be considered subject to the same terms and conditions as policies that are issued with the 06 03 exclusion endorsement editions.

All Filed Commercial Programs Except Umbrellas

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

Companies that have not given AAIS filing authorization for forms and endorsements will need to designate an effective date, complete an AK Expedited Filing Transmittal Document For Terrorism Risk Insurance Forms and Pricing, and submit a filing to the state.

Commercial Umbrella and Farm Umbrella Programs Only

Each company that wishes to adopt the new endorsement edition must do so by establishing an effective date and notifying the Insurance Department in writing. For companies that have already submitted a filing of the 01 03 exclusion endorsement and have received an objection, it is recommended that the 06 03 endorsement edition be included with your objection response.

Inland Marine Guide

Alaska does not require that endorsements applicable to non-filed Inland Marine Classes be filed.   However, companies are advised to use the same endorsement that is shown for the filed Commercial Inland Marine classes for the Inland Marine Guide classes.

Non-Certified Endorsements

All Filed Commercial Programs Except Umbrellas

The non-certified endorsements (other than those applicable to Commercial and Farm Umbrella) have been approved with an effective date of July 15, 2003.

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

Companies that have not given AAIS filing authorization for forms and endorsements will need to designate an effective date, complete an AK Expedited Filing Transmittal Document For Terrorism Risk Insurance Forms and Pricing, and submit a filing to the state.

Commercial Umbrella and Farm Umbrella Programs Only

The Commercial and Farm Umbrella endorsements, which companies are required to reference file in order to adopt, have been approved with an effective date of July 1, 2003.

Each company that wishes to adopt the new endorsement editions must do so by establishing an effective date and notifying the Insurance Department in writing. For companies that have already submitted a filing of the 01 03 exclusion endorsements and have received an objection, it is recommended that the 06 03 endorsement editions be included with your objection response.

Inland Marine Guide

Alaska does not require that endorsements applicable to non-filed Inland Marine Classes be filed.   However, companies are advised to use the same endorsements that are shown for the filed Commercial Inland Marine classes for the Inland Marine Guide classes.

SUPPLIES

The forms and endorsements filed for use in this state have been released to CCH Insurance Services Inc. (CCH), the print vendor for AAIS forms and endorsements. Call CCH at (800) 382-2424 to order forms and endorsements in paper printed format. Call CCH at 800-782-9481 to order the text of AAIS forms in a variety of electronic formats.

AAIS also offers the text of forms and endorsements in limited electronic formats. Call Veronica Clarke at 800/564-AAIS for more information.

ATTACHMENTS