| Date: June 20, 2003 |
Bulletin Number: |
03-0224 |
| Line(s) of
Insurance: |
Agricultural Output
Artisans
Businessowners
Commercial Inland
Marine
Commercial Liability
|
Commercial Output
Commercial Output XL
Commercial Properties
Contractors &
Developers Output
Crime
|
Farm Properties
Farmowners
Glass
Inland Marine Guide
Personal & Premises
Liability |
**This
bulletin and its attachments have been made available at the AAIS open Web site:
AAISonline.com. This bulletin will not be distributed in a paper format.**
MICHIGAN
TERRORISM EXCLUSION ENDORSEMENTS REVISED
Terrorism exclusion
endorsements that do not contain a fire exception have been filed, with a proposed
effective date of September 1, 2003, as
replacements for the terrorism exclusion endorsements that are currently on file in
Michigan. In addition, several of the terrorism rule and rating information manual
supplement pages have been updated in order to reflect the change in endorsements.
BACKGROUND
On May 29,
2003, the enactment of House Bill 4432 added Section 2834 to the Michigan Insurance
Code for the purpose of exempting from commercial policies that provide property coverage,
fire loss caused directly or indirectly by terrorism.
Refer to the
following web site address to view a complete copy of House Bill 4432:
http://www.michiganlegislature.org/documents/2003-2004/billenrolled/house/pdf/2003-HNB-4432.pdf
CHANGES
Tables A, B,
and C that follow show the programs in which endorsements are being replaced and manual
supplement pages are being changed.
NOTE: The
only programs in which endorsement replacements are required are those in which some type
of property coverage is provided.
The new
endorsements differ from the current endorsements only to the extent that the Terrorism
Exclusion present in each new endorsement does not contain a fire exception. A copy of
each endorsement that has been submitted in Michigan is available electronically on our
public web site, as an attachment to Bulletin 02-0550, at http://www.aaisonline.com/terrorism/bulletins/02-0550.html.
The revised Rule pages differ from the current Rule pages only to the extent that no
mention of the standard fire policy is made, and the endorsement numbers shown for each
program have been updated to reference exclusion endorsements that do not contain a Fire
Exception.
The revised Rating Information page
differs from the current Rating Information page only to the extent that the factors shown
for Fire-Following Coverage, that previously was required by statute to be provided, have
been deleted from the table.
TABLE A (Certified
Exclusion Endorsements)
Program |
New
Endorsement |
Current
Endorsement |
Agricultural Output |
CL 0610 12 02 |
CL 0620 12 02 |
Artisans |
AP 0710 12 02 |
AP 0720 12 02 |
Businessowners |
BP 0760 12 02 |
BP 0770 12 02 |
Commercial Inland Marine (Filed Classes) |
CL 0610 12 02 |
CL 0620 12 02 |
Commercial Output |
CL 0610 12 02 |
CL 0620 12 02 |
Commercial Output XL |
CL 0610 12 02 |
CL 0620 12 02 |
Commercial Properties |
CL 0610 12 02 |
CL 0620 12 02 |
Contractors & Developers Output |
CL 0610 12 02 |
CL 0620 12 02 |
Farm Properties |
FL 0610 12 02 |
FL 0620 12 02 |
Farmowners |
FO 0610 12 02 |
FO 0620 12 02 |
TABLE B (Non-Certified Exclusion Endorsements)
Program |
New
Endorsements |
Current
Endorsements |
Agricultural Output |
CL 0630 12 02
CL 0650 12 02 |
CL 0640 12 02
CL 0660 12 02 |
Artisans |
AP 0730 12 02
AP 0750 12 02 |
AP 0740 12 02
AP 0760 12 02 |
Businessowners |
BP 0780 12 02
BP 0800 12 02 |
BP 0790 12 02
BP 0810 12 02 |
Commercial Inland Marine (Filed Classes) |
CL 0630 12 02
CL 0650 12 02 |
CL 0640 12 02
CL 0660 12 02 |
Commercial Output |
CL 0630 12 02
CL 0650 12 02 |
CL 0640 12 02
CL 0660 12 02 |
Commercial Output XL |
CL 0630 12 02
CL 0650 12 02 |
CL 0640 12 02
CL 0660 12 02 |
Commercial Properties |
CL 0630 12 02
CL 0650 12 02 |
CL 0640 12 02
CL 0660 12 02 |
Contractors & Developers Output |
CL 0630 12 02
CL 0650 12 02 |
CL 0640 12 02
CL 0660 12 02 |
Farm Properties |
FL 0630 12 02
FL 0650 12 02 |
FL 0640 12 02
FL 0660 12 02 |
Farmowners |
FO 0630 12 02
FO 0650 12 02 |
FO 0640 12 02
FO 0660 12 02 |
TABLE C (Rule and
Rating Information Page Supplement)
Program |
New Supplement Page |
Current Supplement Page |
Agricultural Output,
Artisans, Businessowners, Commercial Inland Marine (Filed Classes), Commercial Liability,
Commercial Output, Commercial Output XL, Commercial Properties, Contractors &
Developers Output, Crime, Farm Properties, Farmowners, Glass, and Personal & Premises
Liability (Farm Only) |
Rules
-- 2 (Rev 1.1)
Rules
-- 3 (Rev 1.1)
Rules
-- 6 (Rev 1.1)
Rules
-- 7 (Rev 1.1)
Rating
Information - 1 (Rev 1.1) |
Rules
-- 2 (Rev 1.0)
Rules
-- 3 (Rev 1.0)
Rules
-- 6 (Rev 1.0)
Rules
-- 7 (Rev 1.0)
Rating
Information - 1 (Rev
1.0) |
INLAND MARINE GUIDE
Michigan does not require rate, rule, or form filings for non-filed
Inland Marine Guide classes. However, companies should switch from exclusion endorsements
CL 0620 12 02, CL 0640 12 02, and CL 0660 12 02 to exclusion endorsements CL 0610 12 02,
CL 0630 12 02, and CL 0650 12 02 as soon as possible. In addition, companies should begin
using the "IMG Terrorism Rules Supplement NSFP- IM Exempt", located on the AAIS
public web site at http://www.aaisonline.com/terrorism/IMGinfo.html, in place
of the current "IMG Terrorism Rules Supplement SFP", when the change in
endorsements is made. As was previously the case, the rating information applicable to the
Commercial Inland Marine Filed Classes should also be used with the Guide classes.
FILING NUMBERS
The AAIS filing
numbers that apply to the certified and non-certified submissions in Michigan in the
following tables:
Certified
Materials
Program |
AAIS Forms
Filing Number |
AAIS Rule
& Rating Information Filing Number |
Agricultural Output |
N/A -- Filing
Not Required |
AAIS-2003-16AGRC |
Artisans |
N/A -- Filing
Not Required |
AAIS-2003-16APRC |
Businessowners |
N/A -- Filing
Not Required |
AAIS-2003-16BPRC |
Commercial Inland
Marine (Filed Classes) |
N/A -- Filing
Not Required |
AAIS-2003-16CIMRC
|
Commercial Liability |
N/A -- Filing
Not Required |
AAIS-2003-16CLRC
|
Commercial Output |
N/A -- Filing
Not Required |
AAIS-2003-16COPRC |
Commercial Output XL |
N/A -- Filing
Not Required |
AAIS-2003-16CXLRC |
Commercial Properties |
N/A -- Filing
Not Required |
AAIS-2003-16CPRC
|
Contractors &
Developers Output |
N/A -- Filing
Not Required |
AAIS-2003-16DOPRC |
Crime |
N/A -- Filing
Not Required |
AAIS-2003-16CRRC
|
Farm Properties |
N/A -- Filing
Not Required |
AAIS-2003-16FPRC
|
Farmowners |
N/A -- Filing
Not Required |
AAIS-2003-16FORC
|
Glass |
N/A -- Filing
Not Required |
AAIS-2003-16GSRC
|
Personal & Premises
Liability (Farm Only) |
N/A -- Filing
Not Required |
AAIS-2003-16PPLRC
|
Non-Certified Materials
Program |
AAIS Forms
Filing Number |
AAIS Rule
Filing Number |
Agricultural Output |
N/A -- Filing
Not Required |
AAIS-2003-16AGRN |
Artisans |
N/A -- Filing
Not Required |
AAIS-2003-16APRN |
Businessowners |
N/A -- Filing
Not Required |
AAIS-2003-16BPRN |
Commercial Inland
Marine (Filed Classes) |
N/A -- Filing
Not Required |
AAIS-2003-16CIMRN |
Commercial Liability |
N/A -- Filing
Not Required |
AAIS-2003-16CLRN |
Commercial Output |
N/A -- Filing
Not Required |
AAIS-2003-16COPRN |
Commercial Output XL |
N/A -- Filing
Not Required |
AAIS-2003-16CXLRN |
Commercial Properties |
N/A -- Filing
Not Required |
AAIS-2003-16CPRN
|
Contractors &
Developers Output |
N/A -- Filing
Not Required |
AAIS-2003-16DOPRN |
Crime |
N/A -- Filing
Not Required |
AAIS-2003-16CRRN
|
Farm Properties |
N/A -- Filing
Not Required |
AAIS-2003-16FPRN
|
Farmowners |
N/A -- Filing
Not Required |
AAIS-2003-16FORN
|
Glass |
N/A -- Filing
Not Required |
AAIS-2003-16GSRN
|
Personal & Premises
Liability (Farm Only) |
N/A -- Filing
Not Required |
AAIS-2003-16PPLRN
|
EFFECTIVE DATE
In accordance with Section
106(a)(2)(B) of the Terrorism Risk Insurance Act of 2002, the certified materials
described in this bulletin have been submitted on a file-and-use basis, and the
non-certified materials have been submitted on a prior approval basis, for policies
effective on or after September 1, 2003. As a
result, companies may begin using the certified materials on September 1, 2003, but should refrain from using
the non-certified materials until further notified by AAIS that formal approval of these
materials has been received.
COMPANY ACTION
Endorsements
Companies are
not required to file forms in this state. However,
companies are instructed to maintain a listing of forms that are in use on 6/1 of
each year.
Rules and Rating Information
Companies that have granted AAIS filing
authority for rules and/or rating information can adopt the revised manual supplement
without notifying the insurance department if they intend to use it without change.
However, companies that choose to depart from
the AAIS filed pages must notify the insurance department in writing as soon as possible.
SUPPLIES
Endorsements
The forms and endorsements filed for use in
this state are available from 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.
Manual
Supplements
The terrorism manual supplements in the AAIS manuals posted to the
subscriber Web site, AAISdirect.com. will be
updated in the near future to reflect the attached Revision 1.1 information.
Forms and Endorsements Listings
The forms and
endorsements listings posted to the subscriber Web site, AAISdirect.com will be updated in the near future
to reflect the change to terrorism endorsements that do not contain a fire exception.
WEB SITE POSTINGS
This bulletin,
and its ATTACHMENTS, are posted to the AAIS
open Web site at http://www.aaisonline.com/terrorism/newrules.html.
ATTACHMENT
--
Michigan Terrorism Loss Rules and Rating Information Page Supplement
(Rev 1.1)
Direct Questions to:
Edie Gardner, CPCU
Product Development Specialist
edieg@AAISonline.com
Copyright, American Association of Insurance Services, Inc., 2003
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