| Date:
December 5, 2003 |
Bulletin Number: |
03-0501 |
| Line(s)
of Insurance: |
Farm
Properties
Farmowners
|
|
NEW
YORK
CERTIFIED TERRORISM ENDORSEMENTS
AND RATING PROCEDURES REVISED
Reference Bulletins: 03-0092 and 03-0459
Special 02 04 editions of the Farm Properties and
Farmowners certified terrorism endorsements have been filed for use in New York, effective
January 1, 2004, as a replacement for the
corresponding 04 03 endorsements that are
currently on file.
BACKGROUND
Certified terrorism endorsements and rating
procedures have been refiled in each state in response to the Treasury Department's July
7, 2003 ruling that owner-occupied farm residences are personal lines exposures, and are
therefore not subject to the Terrorism Risk Insurance Act of 2002 (TRIA). See Reference
Bulletin 03-0459 for additional information regarding the breakdown of eligible and
ineligible farm exposures.
Unlike the multistate 01 04 endorsements attached to Reference Bulletin
03-0459, the 02 04 certified terrorism endorsements reflect a
provision that makes 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 01
04 multistate endorsements attached to Reference Bulletin 03-0459 that can be used
with programs not subject to Standard Fire Policy provisions have not been revised.
ENDORSEMENTS
A table that identifies the new certified
terrorism endorsements that apply to the New York Farm Properties and Farmowners programs
follows:
Program |
Endorsement Used to Provide Coverage For Certified
Terrorism Loss |
Endorsement Used to Exclude Coverage For Certified
Terrorism Loss |
Farm Properties |
FL 0600 02 04 |
FL 0620 02 04 |
Farmowners |
FO 0600 02 04 |
FO 0620 02 04 |
RATING INFORMATION
A reference to the types of farm exposures
that are ineligible for coverage under TRIA has been added to Rating Information Pages 1
and 2 (Rev. 1.1).
EFFECTIVE DATE
AND FILING NUMBERS
The certified coverage endorsements and rating information
described in this bulletin have been submitted on a File and Use basis, effective January
1, 2004, under the TRIA provisions that waive state prior approval requirements for
filings made through the end of year 2003. Companies may begin using these materials now,
for any policies effective on or after January 1,
2004.
The certified exclusion endorsements and rating information
described in this bulletin have been submitted on a Prior Approval basis, effective January 1,
2004. Companies will be advised once approval of the certified exclusion updates have
been received and use of the new materials may begin.
Refer to the following AAIS filing numbers in all
correspondence directed to the insurance department. (State filing numbers have
not yet been assigned, but will be posted to the AAIS open website at http://www.aaisonline.com/terrorism/NY3.html
once they have been received).
Program |
AAIS Filing Number - Certified Coverage |
AAIS Filing Number - Certified Exclusion |
Farm Properties and
Farmowners |
AAIS-2003-62C |
AAIS-2003-62E |
COMPANY
ACTION
Endorsements
Companies that have granted AAIS filing authority for forms
and endorsements can adopt the endorsements without notifying the insurance department.
However, companies must file and provide support for, any exceptions to or deviations
from, the endorsements filed by AAIS.
Rating
Information
Companies that have granted AAIS filing
authority for rating information are required to notify
the insurance department on or before the effective date designated by AAIS as to whether or not they intend to adopt the filing.
Companies
that intend to adopt the rating information, as filed by AAIS, must establish an effective
date and submit the necessary state filing form to the insurance department.
In
addition to the above requirements, companies that intend to adopt the AAIS rating
information with changes, or on a later
effective date must furnish a copy of their current rating information and provide
support for the changes they are requesting.
Companies
that choose not to adopt the rating information filing must notify the insurance
department of the reason(s) for their non-adoption/delay, and furnish a copy of their
current rating information.
When a
company does not adopt all or a portion of the filing, the particular rating information
that the filing addresses is thereafter considered to be an independent filing by the insurance department. As
such, the company will be required to file, and provide support for, all future changes to the rating information.
However, if the company's notification of its non-adoption/delay indicates a specific date on which it will adopt the AAIS
filing, the company will not be required to furnish current manual pages or provide
support for such adoption, to the extent that it does not deviate from the rating
information filed by AAIS.
SUPPLIES
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 Debbie Hurley at 800/564-AAIS for more information.
ATTACHMENTS
-- FL 0600 02 04
Certified Terrorism Loss
-- FL 0620 02 04
Certified Act of Terrorism Exclusion
-- FO 0600 02 04 Certified
Terrorism Loss
-- FO 0620 02 04 Certified
Act of Terrorism Exclusion
-- NY Terrorism Loss
Rating Information Pages 1 and 2 (Rev 1.1)
Direct
Questions to:
Edie Gardner, CPCU
Product Development Specialist
edieg@AAISonline.com
Top
info@aaisonline.com
