A revised edition of endorsement FL 0670, Certified Terrorism Loss, and a corresponding manual supplement have been acknowledged by the New Jersey Department of Banking and Insurance effective January 1, 2004.

BACKGROUND

As announced in Bulletin 03-0212, the New Jersey Department of Banking and Insurance previously disapproved endorsement FL 0670 03 03, Certified Terrorism Loss. However, it has recently acknowledged endorsement FL 0670 07 03, Certified Terrorism Loss, and a corresponding manual supplement, which provide companies with a means to qualify for federal reinsurance under the Terrorism Risk Insurance Act of 2002 (TRIA). The rules governing the use of this endorsement specify that it is to be attached only to policies written to cover the exposures of premises that are regularly rented or held for rental to others. Copies of endorsement FL 0670 07 03 and Certified Terrorism Loss Supplement Rev 1.1 are attached to this bulletin.

EFFECTIVE DATE

The materials described in this bulletin have been acknowledged in New Jersey effective
January 1, 2004. Refer to filing number AAIS-2003-11-2 and state file number 03-2914 in all correspondence directed to the insurance department.

COMPANY ACTION

The AAIS filing submitted in this state advised the insurance department that the materials may be provided to affiliated companies in an electronic format. The department was informed that due to differences in printer configurations or other hardware or software differences, the cosmetic appearance of the material may be altered slightly when produced by another system without affecting the content.

The filing was submitted on a 'file and use' basis as permitted under the terms of TRIA. Companies that have granted AAIS filing authority for forms & endorsements and/or manual rules for the Dwelling Properties program and/or the Personal & Premises Liability program can adopt the endorsement and/or rules without notifying the insurance department.

SUPPLIES

Forms and Endorsements

Endorsement FL 0670 07 03 has been released to CCH Insurance Services, the exclusive printer of AAIS forms and endorsements. Call CCH Insurance Services at 800/382-2424 to order AAIS forms and endorsements in paper printed format. Call CCH Insurance Services at 800/782-9481 to order the text of AAIS forms and endorsements 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.

Updated New Jersey Dwelling Properties and Personal & Premises Liability forms and endorsements listings are attached to this bulletin.

Rules and Rating Information

The Dwelling Properties and Personal & Premises manuals referenced in this bulletin are available from AAIS and have been updated to include the Certified Terrorism Loss supplement. All future orders for these manuals for this state will automatically include the supplement. A manual order form is attached.

For an additional charge, manuals can be customized to convert loss cost rating information to final rates and premiums. Show the company multiplier(s) and any other instructions for custom manual preparation on the order form.

ATTACHMENTS

-- Endorsement FL 0670 07 03 Certified Terrorism Loss
-- Certified Terrorism Loss Supplement Rev 1.1
-- New Jersey Dwelling Properties Forms and Endorsements Listing Rev 3.7
-- New Jersey Personal & Premises Liability Forms and Endorsements Listing Rev 3.15
-- Personal Lines Manual Order Form

Direct Questions to:

Sandra Fillion
Product Development Specialist
sandraf@AAISonline.com

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