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VIRGINIA CERTIFIED TERRORISM EXCLUSION ENDORSEMENTS REVISED Certified terrorism exclusion endorsements that do not contain a fire exception have been filed, with a proposed effective date of July 1, 2003, as replacements for the certified terrorism exclusion endorsements currently on file in Virginia. In addition, a filing of several of the certified terrorism rule and rating information Supplement pages has been made to reflect the endorsement changes. House Bill No. 2606, which takes effect on July 1, 2003, exempts loss caused by certified acts of terrorism from standard fire policy requirements if certified terrorism coverage has been offered to and rejected by the insured. Previously, since no distinction was made in the law that would preclude the application of standard fire policy provisions to terrorism losses, coverage still had to be provided for ensuing fire loss, even in cases where the insured had rejected coverage for all other types of certified terrorism loss. The enactment of House Bill 2606 now allows fire-following coverage to be rejected concurrent with the rejection of coverage for all other certified terrorism loss. The table on
the following page shows the programs in which endorsements are being replaced. The new
endorsements differ from the current endorsements only to the extent that the Certified
Act of Terrorism Exclusion does not contain a fire exception. -- Revision 1.1 of Rules Pages 2, 3, and 4 differs from Revision 1.0 only to the extent that no mention of the standard fire policy is made, and form numbers for exclusion endorsements that do not contain a Fire Exception are shown rather than form numbers for exclusion endorsement that do contain a Fire Exception. -- Revision 1.1 of Rating Information Page - 1 differs from Revision 1.0 only to the extent that the column of factors that previously applied to Fire-Following Coverage, when all other Certified Terrorism Loss coverage was rejected, has been deleted from the table.
The AAIS filing
numbers applicable to the new endorsement and manual supplement editions are listed on the
following page. Refer to these filing numbers in all correspondence directed to the
Insurance Department. State File Numbers have not yet been assigned by the Insurance
Department, but they will be posted to the AAIS open web site as soon as they become
available.
In accordance with Section
106(a)(2)(B) of the Terrorism Risk Insurance Act of 2002, the materials described in this
bulletin have been submitted to the Bureau of Insurance on a file-and-use basis. As a
result, companies may begin using the newly filed materials on policies effective on or
after July 1, 2003. Endorsements Companies that have granted AAIS
filing authority for forms and endorsements can adopt the endorsements without notifying
the Bureau of Insurance (BOI). Companies that have granted AAIS filing authority for rules can adopt revised Supplement pages Rules - 2, Rules - 3, and Rules - 4 (REV 1.1) of the Virginia Terrorism Losses -- Rules Supplement without notifying the insurance department, provided that no content-related changes are made to the AAIS pages. Companies that have granted AAIS filing authority for rules that choose to depart from the AAIS filed pages, or that choose not to adopt Supplement pages Rules - 2, Rules - 3, and Rules - 4 (REV 1.1), are obligated to notify the Bureau of Insurance (BOI) in writing as soon as possible. Rating
Information Companies that have granted AAIS
filing authority for rating information can adopt Rating
Information Page - 1 (REV 1.1) 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 must notify the insurance department in writing as soon
as possible. Endorsements The forms and endorsements filed for use in
this state have been released to CCH Insurance Services Inc. (CCH), the print vendor for AAIS forms and
endorsements. Call CCH at (800) 382-2424 to order forms and endorsements in paper printed
format. Call CCH 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. The terrorism manual supplements included in all future orders filled
for AAIS manuals, and in the AAIS manuals posted at the subscriber Web site, AAISdirect.com. will be updated in the near future
to reflect Revision 1.1 information. The forms and
endorsements listings supplied with all orders filled for AAIS manuals, and posted at the
subscriber Web site, AAISdirect.com will be
updated in the near future to reflect certified terrorism endorsements that do not contain
a fire exception. This bulletin,
and all of the items shown below as ATTACHMENTS,
are posted to the AAIS open Web site at http://www.aaisonline.com/terrorism/StateAction.html.
Edie Gardner, CPCU
Copyright, American Association of Insurance Services, Inc., 2003
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Attachments CL 0610 03 03 Certified Act of Terrorism Exclusion
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