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CALIFORNIA In our August 29, 2003
Product Advisory, companies were notified that it might be necessary for AAIS to amend the
rating procedures that we had filed back in February, 2003 due to questions that were
being raised by the California Department of Insurance. This bulletin is being sent to
advise companies that, as anticipated, Rating
Information - 1 (Rev 1.0) has been superseded by the new and different rating
procedures identified below. The procedures for rating
the exposure that is retained by the company when certified terrorism coverage is provided
now vary by program. Programs with similar procedures have been grouped together and are
displayed on the same rating information page. The revision number for every rating
information page (other than for Inland Marine Guide, which did not change) has been
advanced to 1.1. Although a charge was
previously contemplated for the fire-following exposure that would continue to exist when
certified terrorism coverage was rejected, that charge has now been eliminated. In
addition to being deleted from the Rating Information pages, the reference to a
fire-following charge has also been deleted from page 3 of the Terrorism rules. Rules In order to adopt
the Rev 1.1 AAIS rule supplement page, companies affiliated for rules must establish an
effective date and make a reference filing with the California Insurance Department. All
filings should include the required California state filing forms, and the applicable AAIS and CDI file
numbers. In
order to adopt the AAIS rating material, all companies affiliated for rating information
must convert the AAIS loss cost information to final rates, establish an effective date,
and make a reference filing with the California Insurance Department. All filings should
include the required California rate application, and the applicable AAIS and CDI file
numbers. Companies that lack specific ratemaking data for the terrorism exposure can
include a statement to this effect on their rate filing application, thereby citing the
shortage of data as a reason why the company is relying upon the approved AAIS rating
material to provide appropriate rates. The AAIS and CDI
rule and rating information file numbers are posted to our open web site at http://www.aaisonline.com/terrorism/CA.html.
This bulletin and its attachments are also available on the AAIS web site, at http://www.aaisonline.com/terrorism/newrules.html.
No revisions
have been made to the California Inland Marine Guide rating information page that was
originally submitted. However, it too is being posted as a Bulletin attachment. --
Certified Terrorism Rules -- Page 3 (Rev 1.1) --
Certified Terrorism Rating Information for Commercial Inland Marine (Filed Classes),
Commercial Liability, and Glass (Rev 1.1) --
Certified Terrorism Rating Information for Agricultural Output, Commercial Properties, and
Crime (Rev 1.1) --
Certified Terrorism Rating Information for Artisans and Businessowners (Rev 1.1) --
Certified Terrorism Rating Information for Commercial Output (Rev 1.1) --
Certified Terrorism Rating Information for Contractors and Developers Output (Rev 1.1) --
Certified Terrorism Rating Information for Inland Marine Guide (Rev 1.0)
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Attachments View or download in: Acrobat and MS Word Certified
Terrorism Rules - Page 3 (Rev 1.1) |
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