**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.**

GEORGIA 
CERTIFIED TERRORISM ENDORSEMENTS AND MANUAL SUPPLEMENT REVISED
Reference Bulletins 02-0550 and 03-0067

Multistate 12 02 certified terrorism endorsements have been filed with an effective date of January 1, 2004 as replacements for the corresponding 02 03 certified endorsement versions that currently apply to programs providing property coverage in Georgia.

BACKGROUND

Georgia Insurance Department Bulletin 02-EX-3, dated December 19, 2002, indicated that the Cap on Annual Liability set forth in Section 103(e)(2)(A)(ii) of the Federal Terrorism Risk Insurance Act of 2002 did not apply to fire-following losses. Based upon this information, AAIS initially filed a special 02 03 edition of each Certified Terrorism Loss and Exclusion endorsement for use with those programs that were subject to Standard Fire Policy provisions.

Several months after our initial filing had been made, AAIS was advised by Georgia Insurance Department personnel that including the statement in Bulletin 02-EX-3 that exempted fire-following losses from the Cap on Annual Liability had been an error. As a result, AAIS has now submitted in Georgia, the certified terrorism endorsement version that is on file in the majority of Standard Fire Policy states.

CHANGES

Tables A, B, and C that follow show the programs in which certified endorsements are being replaced and certified manual supplement rule pages are being changed.

NOTE:   The only programs in which endorsements are being replaced are those in which property coverage is provided.

               Replacement endorsements have not yet been submitted for the Farm Properties and Farmowners programs. However, a separate filing will be submitted in the near future to address not only the above change, but also the eligibility clarifications cited in the final guidelines issued by the Department of the Treasury on July 7, 2003, with respect to the Terrorism Risk Insurance Act of 2002 (TRIA).

A copy of each certified terrorism endorsement listed in Tables A and B is available on our public web site, at http://www.aaisonline.com/terrorism/newrules.html, as an attachment to Bulletin 02-0550.

The revised Rule pages differ from the current Rule pages only to the extent that no mention of the standard fire policy is made, and the endorsement numbers shown for each program other than Farmowners and Farm Properties have been updated to reference multistate endorsement editions instead of state-specific endorsement editions.

TABLE A  (Certified Coverage Endorsements)

TABLE B  (Certified Exclusion Endorsements)

 TABLE C (Rule Supplement Pages)

FILING NUMBERS

The AAIS filing numbers that apply to the new certified terrorism submissions are shown in the following tables:

Certified Endorsements

Certified Rule Supplement Pages

EFFECTIVE DATE

In accordance with Section 106(a)(2)(B) of the Terrorism Risk Insurance Act of 2002, the certified materials described in this bulletin have been submitted on a file-and-use basis for policies effective on or after January 1, 2004. Companies may implement the materials shown in Tables A, B, and C on or after this date.

COMPANY ACTION

Endorsements

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

Rules

Companies that have granted AAIS filing authority for rules can adopt the revised manual supplement pages without notifying the insurance department, if they intend to use them without change.

However, companies that choose to depart from the AAIS filed supplement pages must notify the insurance department in writing before the effective date designated by AAIS.

NON-CERTIFIED TERRORISM FILINGS

Although the Georgia Insurance Department has not yet reversed its original decision, to simply disapprove all filings that are made to address non-certified terrorism loss, companies are now at least  permitted to submit such filings to the Department for consideration.

As a result, AAIS has submitted first-time filings of non-certified terrorism exclusion endorsements and rule supplement pages. Additional information pertaining to effective dates and company action required to adopt the filings, once approved, will be provided in a future bulletin.

SUPPLIES

The forms and endorsements filed for use in this state are available from 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 Karen Grela at 800/564-AAIS for more information.

Manual Supplements

The terrorism manual supplements in the AAIS manuals posted to the subscriber Web site, AAISdirect.com, will be updated in the near future to reflect the attached Revision 1.2 information.

Forms and Endorsements Listings

The forms and endorsements listings posted to the subscriber Web site, AAISdirect.com, will be updated in the near future to reflect the change from state-specific to multistate certified terrorism endorsements.

ATTACHMENT

--    Georgia Certified Terrorism Loss Rules Supplement (Rev 1.2)

Direct Questions to:

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

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

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