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VIRGINIA Copies of the special 03 03 editions of the certified terrorism endorsements that are now filed for use in the state of Virginia are attached to this Bulletin. At the request of the Virginia Insurance Department, the multistate 12 02 editions of the certified terrorism endorsements that AAIS originally submitted have been withdrawn and replaced. In all 03 03 replacement editions, a provision has been added to the definition of "certified act of terrorism" to identify the circumstances under which an act will not be certified as an act of terrorism by the Secretary of the Treasury. In addition, to all 03 03 editions that provide coverage for certified terrorism loss, a requirement has been added to specify that in the event of a "certified terrorism loss", the insurer's deductible must have been met in order for the Maximum Annual Liability payment limitation provision to apply. NOTE: The Virginia Bureau of Insurance has specified that any policy issued with a 12 02 edition of a certified terrorism endorsement must be amended to include the 03 03 edition counterpart. The effective date of the change must coincide with the policy effective date. ENDORSEMENTS A table which identifies the Certified Terrorism coverage and exclusion endorsements that apply to each Commercial Lines program filed in Virginia is shown below:
FILING NUMBERS* The endorsements that apply to the programs listed below have been formally "acknowledged" by the Virginia Bureau of Insurance effective January 3, 2003. Refer to the following filing numbers in all correspondence directed to the insurance department.
*No filing numbers are shown for the Farm Umbrella and Commercial Umbrella programs, as the proposed changes have not yet been acknowledged by the state. A separate bulletin will be issued to announce the Bureau's formal acknowledgment of the 03 03 Umbrella endorsement editions. COMPANY ACTION Endorsements1 Commercial Lines Programs Other Than Inland Marine Guide Companies that have granted AAIS filing authority for forms and endorsements can adopt the endorsements without notifying the insurance department. Inland Marine Guide In Virginia, 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 special editions of the certified terrorism endorsements (CL 0600 03 03 and CL 0610 03 03) for the Bailee Customers Floater and Motor Truck Cargo classes. For companies that have already submitted a filing of the 12 02 editions and have received an objection, it is recommended that the 03 03 editions be included with your filing response. For the non-filed inland marine classes other than Bailee Customers Floater and Motor Truck Cargo, the endorsements listed above are available for immediate use. (However, since the terrorism endorsements are not compatible with the forms and endorsements in the Yacht class, they should not be used with policies providing Yacht coverage). Companies are advised to refer to Administrative Letter 2002-15, Dec. 18, 2002, for the filing requirements that apply to terrorism-related filings in Virginia. 1 See the NOTE on Page 1 of this Bulletin for information regarding each company's obligation to amend policies that include a 12 02 edition of a certified terrorism endorsement.HOUSE BILL 2606 - UPCOMING CHANGES On February 13, 2003, the Virginia legislature unanimously passed House Bill 2606, which allows all certified terrorism coverage (including fire-following coverage) to be rejected by the insured. Previously, due to Standard Fire Policy provisions, it was not possible for the insured to reject fire-following coverage, even when all other certified terrorism coverage was rejected. The change is expected to become effective July 1, 2003. AAIS endorsements that exclude loss resulting from certified and non-certified acts of terrorism and that do not make exceptions for fire-following loss will be filed to coincide with the effective date of the revised law. 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 -- CL 0600 03 03 Certified Terrorism Loss Direct Questions to: Edie Gardner, CPCU
Copyright, American Association of Insurance Services, Inc., 2003
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Attachments CL 0600 03 03 Certified Terrorism Loss
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