 |
|
NEW
YORK Copies of the special 04 03 editions of the certified terrorism endorsements filed for use in the state of New York are attached to this Bulletin. At the request of the New York Insurance Department, the multistate 12 02 editions of the certified terrorism endorsements that AAIS filed for use with programs subject to Standard Fire Policy provisions have been withdrawn and replaced. In the 04 03 replacement editions, a provision has been added to make fire following coverage subject to the Maximum Annual Liability payment limitation only if such coverage is determined to fall within the section of the federal Terrorism Risk Insurance Act of 2002 that addresses capping of losses. Note: The multistate 12 02 endorsements described in Reference Bulletin 02-0550 still apply to the following New York programs, which are not subject to Standard Fire Policy provisions: Commercial Inland Marine, Commercial Liability, Crime, Glass, Personal & Premises Liability, Commercial Umbrella, and Farm Umbrella. ENDORSEMENTS A table which identifies the Certified Terrorism coverage and exclusion endorsement that applies to each Commercial Lines program filed in New York is shown below:
FILING NUMBERS The endorsements described in this bulletin (and the applicable multistate 12 02 editions of the Certified Terrorism endorsements described in Reference Bulletin 02-0550) have been placed on file effective March 1, 2003. Refer to the following filing numbers in all correspondence directed to the insurance department.
COMPANY ACTION Endorsements All Commercial Lines Programs Except Umbrellas and Inland Marine Guide Companies that have granted AAIS filing authority for forms and endorsements can adopt the endorsements without notifying the insurance department. Commercial Umbrella and Farm Umbrella Programs Only Each company that wishes to adopt these endorsements must do so by establishing an effective date and notifying the Insurance Department in writing. Inland Marine Guide In accordance with New York Insurance Department Circular Letter 2000-22, companies are required to file endorsements for certain non-filed inland marine classes. Companies affiliated for the Inland Marine Guide must make an independent filing to use the certified terrorism endorsements (CL 0600 12 02 and CL 0610 12 02) for the Builders' Risk and Electronic Data Processing classes, if these classes are filed as inland marine lines of insurance. If these classes are filed as property lines of insurance, file the special editions of the certified terrorism endorsements (CL 0600 04 03 and CL 0620 04 03). If these classes are filed as a property line of insurance, these classes would no longer fall under the inland marine exemption. For the non-filed inland marine classes other than Builders' Risk, Electronic Data Processing and Yacht, the 12 02 certified terrorism loss endorsements are available for immediate use. Companies are advised to refer to Circular Letter No. 25 (2002) dated December 23, 2002 and Supplement No. 1 to Circular Letter 25 dated February 19, 2003 for the filing requirements that apply to terrorism-related filings in New York. Rating Information When Coverage for Certified Terrorism Loss Is Accepted or Rejected: All Filed Commercial Lines Programs Except Umbrellas Companies that have granted AAIS filing authority for rating information are required to notify the insurance department as soon as possible as to whether or not they intend to adopt this filing. Commercial Umbrella and Farm Umbrella Programs Only Companies must develop and submit Umbrella rating information independently. Inland Marine Guide For the non-filed inland marine classes other than Builders' Risk, Electronic Data Processing and Yacht, the certified terrorism loss rating information is available for immediate use. Expedited Filing Transmittal No Expedited Filing Transmittal form applies in New York. Normal filing forms are to be completed and normal procedures are to be followed. Disclosure Notices All Commercial Lines Programs NOTE: Since prior to the passage of the federal Terrorism Risk Insurance Act of 2002, New York did not allow terrorism exclusions to be placed on file, the only AAIS notice that can be used in New York on or after February 25, 2003 when making an offer of coverage is CL 1045 12 02. Affiliated companies can use AAIS policyholder notice CL 1045 12 02 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 NOT required to place them on file. Separate Line Item Requirement For policies issued on February 25, 2003 and later, the Terrorism Risk Insurance Act of 2002 specifies that the certified terrorism loss premium and the Federal share of insured losses must be disclosed as a 'separate line item' in the policy. According to the Act, insurers must meet this requirement as a condition for federal payments. The three ways which the Treasury Department has indicated that this requirement may be met, in the Interim Guidance issued on January 22, 2003, is by showing the required information:
While notice CL 1045 12 02 may still be used as a means through which coverage may be selected or rejected, the certified terrorism loss premium and Federal share of insured losses must still be shown specifically on the declarations, elsewhere in the policy, or in an endorsement to the policy. See Bulletin 03-0089, posted at the AAIS open Web site (www.AAISonline.com), for additional information regarding the 'separate line item' requirement. SUPPLIES The forms and endorsements approved for use in this state have been released to Uniform Information Services, Inc. (UIS), the print vendor for AAIS forms and endorsements. Call UIS at (800) 382-2424 to order forms and endorsements in paper printed format. Call UIS at 800-782-9481 to order the text of AAIS forms in a variety of electronic formats. AAIS also offers the text of forms and endorsements in limited electronic formats. Call Veronica Clarke at 800/564-AAIS for more information. ATTACHMENTS
Direct Questions to: Edie Gardner, CPCU Copyright, American Association of Insurance Services, Inc., 2003
|
Attachments CL 0600 04 03 Certified Terrorism Loss
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
