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LOUISIANA Terrorism exclusion endorsements that
do not contain an ensuing fire loss exception have been filed, with a proposed
effective date of November 15, 2003, as
replacements for the terrorism exclusion endorsements that are currently on file in
Louisiana. In addition, several of the terrorism rule and rating information manual
supplement pages have been updated in order to reflect the change in endorsements. The enactment of House
Bill 1788, on August 15, 2003, added a new section (Section H.) to Louisiana statute
22:691. Section H. indicates that, unless they are specifically endorsed
to do so, commercial property and casualty insurance policies do not provide coverage for
loss caused directly or indirectly by terrorism. Tables A, B, and C that
follow show the programs in which endorsements are being replaced and manual supplement
pages are being changed.
Replacement endorsements have not yet been submitted for the Farm Properties
program. However, a separate filing will be submitted to address not only the standard
fire policy exemption, but also the eligibility clarifications cited in the final
guidelines issued by the Department of the Treasury on July 7, 2003, with respect to the
Terrorism Risk Insurance Act of 2002 (TRIA). 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
certified terrorism exclusion endorsement listed in Table A is available on our
public web site, at http://www.aaisonline.com/terrorism/newrules.html, as an attachment to this
Bulletin. A copy of each non-certified terrorism exclusion endorsement listed in Table B
is also available on our public web site, at http://www.aaisonline.com/terrorism/newrules.html, as an attachment to
Bulletin 02-0550. 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 C (Rule and Rating
Information Page Supplement)
The AAIS filing numbers
that apply to the certified and non-certified Louisiana submissions are shown below. Certified Endorsements
Certified Rules and Rating
Information
Non-Certified Endorsements
Non-Certified Rules
INLAND MARINE GUIDE In Louisiana, companies are required to
submit form filings for non-filed Inland Marine Guide classes. Companies should file
exclusion endorsements CL 0610 05 03, CL 0630 12 02, and CL 0650 12 02 as replacements for
exclusion endorsements CL 0620 05 03, CL 0640 12 02, and CL 0660 12 02. Companies are not
required to file rules or rating information for non-filed Inland Marine Guide classes.
However, on the date the endorsement change is effective, companies should begin using the
"IMG Terrorism Rules Supplement NSFP- IM Exempt", posted on the AAIS public web
site at http://www.aaisonline.com/terrorism/IMGinfo.html in place of the
current "IMG Terrorism Rules Supplement SFP". As was previously the case, the
rating information applicable to the Commercial Inland Marine Filed Classes should also be
used with the Guide classes. 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
for policies effective on or after November 15, 2003, and the non-certified
materials have been submitted on a prior approval basis, for policies effective on or
after November 15, 2003. As a result, companies
may begin using the certified materials on November
15, 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 All
Filed Programs Endorsements (Certified) (Effective 1/1/03, the Louisiana
Department of Insurance implemented new form filing requirements under Section 10113. of
Regulation 78. See 10113.C.3.a. and 10113.C.3.b. for information regarding adoption of
advisory organization filings). Companies that have granted AAIS filing
authority for forms and endorsements can adopt the certified terrorism exclusion
endorsements by notifying the insurance department in writing of their intent, and
including the necessary filing fee. Companies that choose not to adopt a filing must still
notify the insurance department of their intent, but no filing fee is required. Companies that have granted AAIS
filing authority for rules and rating information can adopt the manual supplement pages
that address certified terrorism loss on the effective
date designated by AAIS without notifying the insurance department. However, companies that choose to
depart from the AAIS filed supplement pages must notify the insurance department in
writing as soon as possible. The
company action needed to adopt the AAIS Non-Certified terrorism materials will be provided
in the Bulletin that announces approval of the non-certified filings. 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 Karen Grela at 800/564-AAIS for more
information. 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 Revision 1.2 information. The forms and
endorsements listings posted to the subscriber Web site, AAISdirect.com will be updated in
the near future to reflect the transition from terrorism endorsements that contain a fire
exception to terrorism endorsements that do not contain a fire exception. This bulletin, and the ATTACHMENTS listed below, are posted to the AAIS
open web site at http://www.aaisonline.com/terrorism.htm
. -- AP 0710 05 03 Certified Act of Terrorism Exclusion -- BP 0760 05 03 Certified Act of Terrorism Exclusion -- CL 0610 05 03 Certified Act of Terrorism Exclusion -- Louisiana Terrorism Loss Rules and
Rating Information Page Supplement (Rev 1.2)
Edie Gardner, CPCU
Copyright, American Association of Insurance Services, Inc., 2003
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Attachments View or download in: Acrobat and MS Word AP 0710 05
03 Certified Act of Terrorism
Exclusion |
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