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PUERTO RICO
Status report on compliance with the
Terrorism Risk Insurance Act of 2002
and related state regulatory policies Regarding
"certified" commercial losses
For an act of terrorism to be certified by the U.S. Secretary of the Treasury (and thus
trigger coverage under the federal Terrorism Reinsurance Program), it must cause more than
$5 million in losses and be inspired, directed, and/or carried out on behalf of a foreign
person or interest.
| IN FORCE BUSINESS - Use the endorsements and rating information
shown below only when the insured accepts the offer of coverage for certified terrorism
loss. |
| Posting date: 1/9/03, 7//23/03 (addl. info.),
2/6/04-COP |
AAIS commercial lines
programs filed on behalf of companies |
AAIS endorsement used
when coverage is provided under the federal Terrorism Insurance Program |
Rating factor to
accompany coverage endorsement |
AAIS endorsement used
when insured declines terrorism coverage
(New and Renewal Policies Only) |
Fire following rating
factor for SFP states |
| Commercial Inland Marine (filed classes) |
CL 0600 12 02 |
.0225 |
CL 0610 12 02 |
N/A |
| Crime |
CL 0600 12 02 |
.0225 |
CL 0610 12 02 |
N/A |
| Commercial Output Program |
CL 0600 12 02 |
.0225 |
CL 0610 12 02 |
N/A |
| (The three programs listed above are the only filed AAIS
programs currently available in Puerto Rico). |
| AAIS Effective Date: 1/16/03, 1/1/04 -COP |
| AAIS Filing Number(s): AAIS-2002-82, AAIS-2003-16C |
| Company action: Endorsements
Companies that have granted AAIS filing authority for forms and endorsements can
adopt the endorsements without notifying the insurance department. Companies that choose
not to adopt a filing must notify the insurance department as soon as possible.
Rating Information
Companies that have granted AAIS filing authority for rating information can adopt
this rating information without notifying the insurance department if they intend to use
it without change.
However, companies that choose to depart from the AAIS filed rating
information, including a decision not to adopt the rating information, must notify the
insurance department in writing as soon as possible.
Expedited Filing Transmittal
An Expedited Filing Transmittal Document For Terrorism Risk Insurance Forms and
Pricing must be included in order to receive expedited handling of any filing required
under these instructions. |
| Comments: Disclosure Notices
Affiliated companies can use the AAIS policyholder notices as filed with slight
modifications for individual policies or develop independent notices that contain the
information required by the Terrorism Risk Insurance Act. Companies that develop their own
notices are required to place them on file for informational purposes. |
Separate Line Item Disclosure Endorsement (CL 0605 02 03)
AAIS Filing No.: AAIS-2003-3
Effective Date: 2/11/03
Company Action: Affiliated companies can adopt the endorsement, as filed,
without taking any filing action.
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Regarding "non-certified" commercial losses
Non-certified terrorism losses are all commercial losses from acts of terrorism that
are not certified as such by the Secretary of the Treasury, and thus not covered by the
federal reinsurance program. These include, but are not necessarily limited to, acts
inspired, directed, and/or carried out by domestic U.S. groups or individuals.
| Posting date: 7/23/03 (endorsement & rule
approvals) |
| AAIS commercial lines programs filed on
behalf of companies |
AAIS endorsement used to
exclude coverage for non-certified terrorism losses |
AAIS endorsement used to
exclude coverage for nuclear, biological, or chemical terrorism losses |
| Commercial Inland Marine (filed classes) |
CL 0630 12 02 |
CL 0650 12 02 |
| Crime |
CL 0630 12 02 |
CL 0650 12 02 |
| Commercial Output Program |
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| AAIS Effective Date: 6/30/03 |
| AAIS Filing Number(s): AAIS-2002-83 |
| Company action: Endorsements
Companies that have granted AAIS filing authority for forms and endorsements can adopt the
endorsements on or after the effective date without notifying the insurance department.
Rules Supplement
Companies that have granted AAIS filing authority for rules can adopt the manual
supplement on or after the effective date designated by AAIS without notifying the
insurance department. |
Comments:
Manual rules that address the use of the various terrorism endorsements were filed in
conjunction with the endorsements that exclude loss caused by non-certified acts of
terrorism. (See the Sample NSFP Terrorism Rules Supplement attachment to Bulletin 02-0550
at this Web site). |
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