Except for Alaska, regulators in states that had previously approved commercial lines terrorism exclusions have indicated that they will accept use of terrorism exclusions and limitations filed prior to enactment of the Terrorism Risk Insurance Act of 2002 for new and renewal policies.

These previous endorsements can only be used to address "non-certified" losses, however, meaning those losses not covered under the federal program.

For information, click on the links on the right.

AAIS will replace these endorsements with new filings that will explicitly reference "non-certified" losses. Otherwise, the new endorsements will be essentially equivalent to those they replace.

Use of the previous endorsements will not complicate treatment of certified terrorism losses (those covered under the program), since the endorsements developed to address certified losses explicitly state that they supersede existing endorsements with respect to certified terrorism losses.

For questions regarding use of the previous endorsements, contact Edie Gardner at edieg@AAISonline.com, or by calling 800/564-AAIS.

Personal lines

AAIS has developed advisory war and terrorism exclusion endorsements for use with its Homeowners (HO) and Mobile-Homeowners (MHO) forms. Since the endorsements are provided on an advisory basis, companies seeking to use them are required to take filing action in all jurisdictions where they would be used.
The HO/MHO exclusions can be grouped into two categories:

• Those that include a "complete" terrorism exclusion; and 
• Those that include a more limited exclusion for nuclear, biological, and chemical events. 

The nuclear, biological, and chemical (NBC) endorsements were developed in response to requests from primary companies who indicated they were able to get reinsurance for fire and explosion losses related to terrorism, but that losses related to NBC events were being excluded.