FARM UMBRELLA
WAR, MILITARY ACTION, AND TERRORISM EXCLUSIONS
STATUS REPORT
APRIL 15, 2003
This report reflects the status of the revised
endorsement
UM 0125 03 02 attached to AAIS Bulletin 02-0113.
This status report provides approval information
for the revised war, military action, and terrorism exclusions endorsement UM 0125 03 02,
which has been filed for use with the AAIS Farm Umbrella program. An advisory
effective date shown below indicates that the filing has been approved or is otherwise
available.
This report identifies 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the exclusions will 'sunset' or be withdrawn shortly after a federal mechanism is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's filing and will also apply to each
company's adoption.
In addition, some states have determined that the war,
military action and terrorism exclusions will only be allowed for 'predominantly
commercial use'. Under the Farm Umbrella program, this would mean that some state
approvals will indicate that the UM 0125 03 02 may only be used when form UM 0610 01 99,
Commercial Umbrella Liability Coverage (Farm), is attached.
COMPANY ACTION
Except where noted, each company that is or that becomes
affiliated for the Farm Umbrella/Excess Liability Program and that wishes to adopt the
latest war, military action, and terrorism exclusions filing on or after the advisory
effective date shown below must do so by establishing an effective date and notifying the
Insurance Department in writing. Where required, companies must also include a completed
Expedited Filing - Commercial Lines Terrorist Exclusions Application (Exp Filing
Application) in their adoption. When completing the application, companies should indicate
that the endorsement provides coverage that is at least as broad as the coverage provided
under similar ISO endorsements. 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
Endorsement UM 0125 03 02 has 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 endorsement 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 war, military action, and terrorism exclusions endorsement
in a state, the forms and endorsements listing in that state will be modified accordingly.
Updated forms and endorsements listings reflecting the addition of the UM 0125 03 02 will
be posted on AAISDirect.com and will otherwise be available upon request to AAIS
affiliates once processing is complete.
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