WAR, MILITARY ACTION, AND TERRORISM EXCLUSIONS
COMMERCIAL LINES STATUS REPORT
APRIL 15, 2003
This is the final report reflecting the status
of the revised endorsements
attached to AAIS Bulletin 02-0075. See Bulletin 02-0270 for additional comments.
This status report provides approval information
for the revised war, military action, and terrorism exclusions endorsements that have been
filed for use with the AAIS programs listed below.
As noted above, the terrorism exclusion filed for property
coverages in many states includes an exception for direct loss or damage by fire to
covered property. This exception does not apply to any Income, Earnings, Extra Expense, or
Legal Liability endorsements or coverage parts.
An effective date shown on this status report indicates
that the latest filing has been approved on behalf of all companies that have given AAIS
filing authority for the applicable program(s) or that the endorsements are otherwise
available.
This report identifies war, military action, and terrorism
exclusions information issued by the states, along with any special requirements or filing
forms that must be included in a company's adoption of the AAIS filing. Most states have
indicated that approval of terrorism exclusions will be granted only to the extent that
the exclusions will 'sunset' or be withdrawn shortly after a federal mechanism is
established to provide reinsurance for loss caused by acts of terrorism. This
"conditional approval" applies to the AAIS filing and will also apply to each
company's adoption.
COMPANY ACTION
COMPANIES THAT HAVE GIVEN AAIS FILING AUTHORITY
Unless otherwise noted, AAIS companies that have granted
AAIS filing authority for forms and endorsements for the programs identified in this
status report can adopt the war, military action, and terrorism exclusions endorsements on
the effective date designated by AAIS without notifying the insurance department. In
limited instances, companies may need to complete an Expedited Filing - Commercial
Lines Terrorist Exclusions Application and submit the completed application to the state.
Refer to the status report for any special state requirements.
COMPANIES THAT HAVE NOT GIVEN AAIS FILING AUTHORITY
Companies that have not given AAIS filing authority for
forms and endorsements for the programs identified in this status report and that wish to
adopt a war, military action, and terrorism exclusions endorsement on or after the
effective date shown below may do so by establishing an effective date and notifying the
Insurance Department in writing. Refer to the status report for the appropriate AAIS
and/or state filing numbers and include them in all correspondence to the state. In most
instances, companies will need to complete an Expedited Filing - Commercial Lines
Terrorist Exclusions Application with their filing. Companies should also follow any other
special state requirements that have been identified on the status report.
EXPEDITED FILING - COMMERCIAL LINES TERRORIST EXCLUSIONS
APPLICATION
Where required, companies must also include a completed
Expedited Filing - Commercial Lines Terrorist Exclusions Application (Exp Filing
Application) in their filings. When completing the application, companies should indicate
that the endorsement(s) provide coverage that is at least as broad as the ISO
endorsement(s). While a model application was developed by the NAIC, many states have
customized the application to meet their specific state requirements. Refer to the Special
State Requirements/Comments column for details.
Contact Larris Larsen, Director of Compliance & State
Filings at LarrisL@AAISonline.com
or Sue Hiller, Manager, State Filings at SueH@AAISonline.com, if you have questions regarding the action needed to adopt this
filing.
SUPPLIES
The endorsements listed in this report have been released
to Uniform Information Services, Inc. (UIS), the print vendor of AAIS forms and
endorsements in paper printed format. Call UIS at 800/382-2424 to order AAIS forms and
endorsements in paper printed format. Call UIS at 800/782-9481 to order the text of AAIS
forms and endorsements in a variety of electronic formats.
Companies may also print the approved endorsements from the
website at AAISonline.com.
FORMS AND ENDORSEMENTS LISTINGS
Once this status report has been updated to reflect the
approval or availability of the applicable war, military action, and terrorism exclusions
endorsements in a state, the forms and endorsements listings in that state will be
modified accordingly. Updated forms and endorsements listings reflecting the addition of
the applicable war and terrorism exclusions will be posted at www.AAISdirect.com
and will otherwise be available upon request to AAIS affiliates once processing is
complete.
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