(July, 2018)
The AAIS and ISO have taken similar approaches to the terrorism filing, but they are not identical.
The one phrase used consistently throughout all of these endorsements is “certified act of terrorism.”
The definition refers back to TRIA stating that the
Secretary of the Treasury must certify an incident based on the criteria of the
act. The definition then explains that in order to be
certified, the losses must exceed $5 million, be violent or dangerous to
infrastructure or individuals and must be intended to coerce the government or
the population of the U.S. to take certain actions.
Related Article: the Terrorism Risk Insurance Act (TRIA)
CL forms are used with Agricultural Output, Commercial Inland Marine, Commercial Output, Commercial Properties, Contractors and Developers Output, Farm Properties, Farm Inland Marine and Glass policies. There are three types of endorsements:
This form is not an exclusion; rather, it notifies the policyholder
that losses subject to TRIA are capped at $100 billion. It also explains that
when aggregate losses exceed $100 billion, losses will be handled on a pro
rated basis.
This exclusion is attached to a policy where the insured has declined to purchase the federal government terrorism coverage. The declination could take place by either signing a form stating they do not want the coverage or by refusing to pay the premium associated with the coverage. Acts of terrorism that are not certified as such remain covered. However, all other exclusions in the policy still remain so an act of terrorism that is not certified may still be excluded because of other exclusions, such as the Nuclear or War exclusion or any other exclusion.
In certain states, ensuing fire must be covered even if terrorism coverage is rejected. In these states special exclusions have been developed to include ensuing fire for direct damage to building and personal property only.
The states are CA, GA, IL, IA, MA, ME, MO, NJ, NY, NC, OR, RI, WI and WV.
B. The following
endorsements apply to policies that are issued for a policy term in which TRIA
may expire. These endorsements are attached to a policy providing terrorism
coverage because of TRIA. They have no impact on coverage unless TRIA expires.
If the act expires, this endorsement becomes active. Because the act is due to
expire in 2020 and its renewal may be either denied or delayed, it is important
to understand how these endorsements will respond.
CL 1650–Conditional
Nuclear, Biological, and Chemical Terrorism Exclusion
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000.
C. The following endorsements are to be used only after TRIA has expired. Because the act is due to expire in 2020 and there is a possibility of the act not being renewed or of its renewal being delayed it is important to understand how these endorsements will respond.
Loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents.
Loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000.
FL forms are used with Farm Properties. There are four endorsement
types:
· FL 0600–Certified Terrorism Loss
This form is not an exclusion; rather, it notifies the policyholder
that losses subject to TRIA are capped at $100 billion. It also explains that
when aggregate losses exceed $100 billion, losses will be handled on a pro
rated basis. There are some restrictions because of the excluded coverages in
TRIA. Livestock, poultry, other covered animals and crops not yet harvested are
not subject to this endorsement. It also does not apply to an owner-occupied
residence when the policy is issued neither to the owner nor to a tenant
occupied residence when the policy is issued to the tenant. The endorsement
only applies to coverage forms FL-1, FL 0001, FL-2, FL 0002, FL-3 or FL
0003.
This exclusion is attached to a policy where the insured has declined an offer to purchase the federal government terrorism coverage. The declination could take place by either signing a form stating they do not want the coverage or by refusing to pay the premium associated with the coverage. Acts of terrorism that are not certified as such remain covered. However, all other exclusions in the policy still remain so an act of terrorism that is not certified may still be excluded because of other exclusions, such as the Nuclear or War exclusion or any other exclusion.
Livestock, poultry, other covered animals and crops not yet harvested are not subject to this endorsement. It also does not apply to an owner-occupied residence when the policy is issued neither to the owner nor to a tenant occupied residence when the policy is issued to the tenant. The endorsement only applies to coverage forms FL-1, FL 0001, FL-2, FL 0002, FL-3 or FL 0003.
In certain states, ensuing fire must be covered even if terrorism
coverage is rejected. In these states special exclusions have been developed to
include ensuing fire for direct damage to building and personal property only.
The states are CA, GA, IL, IA, MA, ME, MO, NJ, NY, NC, OR, RI, WI and WV.
·
FL
0670–Certified Terrorism Loss
This form is not an exclusion; rather, it notifies the policyholder that losses subject to TRIA are capped at $100 billion. It also explains that when aggregate losses exceed $100 billion, losses will be handled on a pro-rated basis. This can be used only for one-to-four family dwellings that are regularly rented out to others.
B. The following
endorsements apply to policies that are issued for a policy term in which TRIA
may expire. These endorsements are attached to a policy providing terrorism
coverage because of TRIA. They have no impact on coverage unless TRIA expires.
If the act expires, this endorsement becomes active. Because the act is due to
expire in 2020 and its renewal may be either denied or delayed, it is important
to understand how these endorsements will respond.
FL 1650–Conditional
Nuclear, Biological, and Chemical Terrorism Exclusion
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Loss or damage resulting from terrorism
is excluded. While the exclusion is not limited to only certified acts of
terrorism it does require that excluded acts be due to nuclear, biological,
chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000.
C. The following
endorsements are to be used only after TRIA has expired. Because the act is due
to expire in 2020 and its renewal may be either denied or delayed, it is
important to understand how these endorsements will respond.
Loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents.
Loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000.
These forms are used with farm and one to four family
dwellings rented to others. There are three endorsement types:
· GL 0310–Certified Terrorism Loss
This form is not an exclusion; rather, it notifies the policyholder
that losses subject to TRIA are capped at $100 billion. It also explains that
when aggregate losses exceed $100 billion, losses will be handled on a pro
rated basis. It also states that this endorsement applies only to farming
related liability losses.
·
GL 0320–Certified
Act of Terrorism Exclusion
This exclusion is attached to a policy where the insured has declined an offer to purchase the federal government terrorism coverage. The declination could take place by either signing a form stating they do not want the coverage or by refusing to pay the premium associated with the coverage. Acts of terrorism that are not certified as such remain covered. However, all other exclusions in the policy still remain so an act of terrorism that is not certified may still be excluded because of other exclusions. This applies only for farming liability.
·
FL
0670–Certified Terrorism Loss
This form is not an exclusion; rather, it notifies the policyholder that losses subject to TRIA are capped at $100 billion. It also explains that when aggregate losses exceed $100 billion, losses will be handled on a pro-rated basis. This can be used only for one-to-four family dwellings that are regularly rented out to others.
B. The following
endorsements apply to policies that are issued for a policy term in which TRIA
may expire. These endorsements are attached to a policy providing terrorism
coverage because of TRIA. They have no impact on coverage unless TRIA expires.
If the act expires, this endorsement becomes active. Because the act is due to
expire in 2020 and its renewal may be either denied or delayed, it is important
to understand how these endorsements will respond.
·
GL 1340–Conditional
Nuclear, Biological, and Chemical Terrorism Exclusion
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Injury or damage resulting from
terrorism is excluded but only if due to nuclear, biological, chemical agents.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Injury or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts must be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000 or that cause 50 or more persons to die or suffer serious injury.
C. The following
endorsements are to be used only after TRIA has expired. Because the act is due
to expire in 2020 and its renewal may be either denied or delayed, it is
important to understand how these endorsements will respond.
Injury or damage resulting from terrorism is excluded but only if due to nuclear, biological, chemical agents.
Injury or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts must be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000 or that cause 50 or more persons to die or suffer serious injury.
These forms are used with only Agricultural General Liability coverage forms.
· AL 6603–Certified Terrorism Loss
This form is not an exclusion; rather, it notifies the policyholder
that losses subject to TRIA are capped at $100 billion. It also explains that
when aggregate losses exceed $100 billion, losses will be handled on a pro-rated
basis.
·
AL
6604–Certified Act of Terrorism Exclusion
This exclusion is attached to a policy where the insured has declined an offer to purchase the federal government terrorism coverage. The declination could take place by either signing a form stating they do not want the coverage or by refusing to pay the premium associated with the coverage. Acts of terrorism that are not certified as such remain covered. However, all other exclusions in the policy still remain so an act of terrorism that is not certified may still be excluded because of other exclusions.
B. The following
endorsements apply to policies that are issued for a policy term in which TRIA
may expire. These endorsements are attached to a policy providing terrorism
coverage because of TRIA. They have no impact on coverage unless TRIA expires.
If the act expires, this endorsement becomes active. Because the act is due to
expire in 2020 and its renewal may be either denied or delayed, it is important
to understand how these endorsements will respond.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Injury or damage resulting from
terrorism is excluded but only if due to nuclear, biological, chemical agents.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Injury or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts must be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000 or that cause 50 or more persons to die or suffer serious injury.
C. The following
endorsements are to be used only after TRIA has expired. Because the act is due
to expire in 2020 and its renewal may be either denied or delayed, it is
important to understand how these endorsements will respond.
Injury or damage resulting from terrorism is excluded but only if due to nuclear, biological, chemical agents.
Injury or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts must be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000 or that cause 50 or more persons to die or suffer serious injury.
These forms are used with commercial general liability coverage forms.
· GL 0250–Certified Terrorism Loss
This form is not an exclusion; rather, it notifies the policyholder
that losses subject to TRIA are capped at $100 billion. It also explains that
when aggregate losses exceed $100 billion, losses will be handled on a pro-rated
basis.
·
GL
0260–Certified Act of Terrorism Exclusion
This exclusion is attached to a policy where the insured has declined an offer to purchase the federal government terrorism coverage. The declination could take place by either signing a form stating they do not want the coverage or by refusing to pay the premium associated with the coverage. Acts of terrorism that are not certified as such remain covered. However, all other exclusions in the policy still remain so an act of terrorism that is not certified may still be excluded because of other exclusions.
B. The following
endorsements apply to policies that are issued for a policy term in which TRIA
may expire. These endorsements are attached to a policy providing terrorism
coverage because of TRIA. They have no impact on coverage unless TRIA expires.
If the act expires, this endorsement becomes active Because the act is due to
expire in 2020 and its renewal may be either denied or delayed, it is important
to understand how these endorsements will respond.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Injury or damage resulting from
terrorism is excluded but only if due to nuclear, biological, chemical agents.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Injury or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts must be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000 or that cause 50 or more persons to die or suffer serious injury.
C. The following
endorsements are to be used only after TRIA has expired. Because the act is due
to expire in 2020 and its renewal may be either denied or delayed, it is
important to understand how these endorsements will respond.
Injury or damage resulting from terrorism is excluded but only if due to nuclear, biological, chemical agents.
Injury or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts must be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000 or that cause 50 or more persons to die or suffer serious injury.
UM forms are used with Commercial Umbrella policies.
There are three endorsement types:
· CU 1301–Certified Terrorism Loss
This form is not an exclusion. For all coverages other than automobile,
it actually removes all terrorism exclusions that
might be part of the underlying coverage. Then it notifies the policyholder
that losses subject to TRIA are capped at $100 billion. It also explains that
when aggregate losses exceed $100 billion, losses will be handled on a pro
rated basis.
This exclusion is attached to a policy where the insured has declined an offer to purchase the federal government terrorism coverage. The declination could take place by either signing a form stating they do not want the coverage or by refusing to pay the premium associated with the coverage. Acts of terrorism that are not certified as such remain covered. However, all other exclusions in the policy still remain so an act of terrorism that is not certified may still be excluded because of other exclusions.
This exclusion is attached to a
policy where the insured has declined an offer to purchase the federal
government terrorism coverage. The declination could take place by either
signing a form stating they do not want the coverage or by refusing to pay the
premium associated with the coverage. Acts of terrorism that are not certified
as such remain covered. However, all other exclusions in the policy still remain so an act of terrorism that is not certified
may still be excluded because of other exclusions.
B. The following
endorsements apply to policies that are issued for a policy term in which TRIA
may expire. These endorsements are attached to a policy providing terrorism
coverage because of TRIA. They have no impact on coverage unless TRIA expires.
If the act expires, this endorsement becomes active. Because the act is due to
expire in 2020 and its renewal may be either denied or delayed, it is important
to understand how these endorsements will respond.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Injury or damage resulting from
terrorism is excluded but only if due to nuclear, biological, chemical agents.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Injury or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts must be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000 or that cause 50 or more persons to die or suffer serious injury.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Injury or damage resulting from
terrorism is excluded but only if due to nuclear, biological, chemical agents.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Injury or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts must be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000 or that cause 50 or more persons to die or suffer serious injury.
C. The following
endorsements are to be used only after TRIA has expired. Because the act is due
to expire in 2020 and its renewal may be either denied or delayed, it is
important to understand how these endorsements will respond.
Injury or damage resulting from terrorism is excluded but only if due to nuclear, biological, chemical agents.
Injury or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts must be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000 or that cause 50 or more persons to die or suffer serious injury.
Injury or damage resulting from terrorism is excluded but only if due to nuclear, biological, chemical agents.
Injury or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts must be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000 or that cause 50 or more persons to die or suffer serious injury.
The Artisan and Businessowners forms are very similar to the property and liability forms above except that they combine both property and liability changes into one form.
There are two types of endorsements:
These forms are not exclusions; rather, they notify the policyholder
that losses subject to TRIA are capped at $100 billion. They also explain that
when aggregate losses exceed $100 billion, losses will be handled on a pro
rated basis.
These exclusions are attached to a policy where the insured has declined an offer to purchase the federal government terrorism coverage. The declination could take place by either signing a form stating they do not want the coverage or by refusing to pay the premium associated with the coverage. Acts of terrorism that are not certified as such remain covered. However, all other exclusions in the policy still remain so an act of terrorism that is not certified may still be excluded because of other exclusions, such as the Nuclear or War exclusion or any other exclusion.
· AP 0720–Standard Fire Exception
· BP 0770–Standard Fire Exception
*In certain states, ensuing fire must be covered even if terrorism coverage is rejected. In these states special exclusions have been developed to include protection against ensuing fire damage to building and personal property.
The states are CA, GA, IL, IA, MA, ME, MO, NJ, NY, NC, OR, RI, WI and WV.
B. The following
endorsements apply to policies that are issued for a policy term in which TRIA
may expire. These endorsements are attached to a policy providing terrorism
coverage because of TRIA. They have no impact on coverage unless TRIA expires.
If the act expires, this endorsement becomes active. Because the act is due to
expire in 2020 and its renewal may be either denied or delayed, it is important
to understand how these endorsements will respond.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Property section loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents.
Liability section injury or damage
resulting from terrorism is excluded but only if due to nuclear, biological,
chemical agents.
If the Terrorism Risk Insurance Program is terminated the exclusionary portion of this exclusion will apply and supersede any other terrorism endorsement on the policy. If the program is renewed this exclusion does not apply.
Property section Loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000.
Liability section Injury or damage
resulting from terrorism is excluded. While the exclusion is not limited to
only certified acts of terrorism it does require that excluded acts must be due
to nuclear, biological, chemical agents or be ones that cause an aggregate
property loss in excess of $25,000,000 or that cause
50 or more persons to die or suffer serious injury.
C. The following
endorsements are to be used only after TRIA has expired. Because the act is due
to expire in 2020 and its renewal may be either denied or delayed, it is
important to understand how these endorsements will respond.
Property section loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents.
Liability section injury or damage
resulting from terrorism is excluded but only if due to nuclear, biological,
chemical agents.
Property section Loss or damage resulting from terrorism is excluded. While the exclusion is not limited to only certified acts of terrorism it does require that excluded acts be due to nuclear, biological, chemical agents or be ones that cause an aggregate property loss in excess of $25,000,000.
Liability section Injury or damage
resulting from terrorism is excluded. While the exclusion is not limited to
only certified acts of terrorism it does require that excluded acts must be due
to nuclear, biological, chemical agents or be ones that cause an aggregate
property loss in excess of $25,000,000 or that cause
50 or more persons to die or suffer serious injury.
Because crime is no longer included under the Terrorism Risk Insurance Act, carriers must decide how to address the exposure. They have three options:
1. Do nothing
If no endorsement is attached there is no special exclusion applicable to terrorism. The war exclusion will continue to apply.
2. Attach CL 0610–Certified Act of Terrorism Exclusion
Acts of terrorism that are not certified as such remain covered. However, all other exclusions in the policy still remain so an act of terrorism that is not certified may still be excluded because of other exclusions, such as the Nuclear or War exclusion or any other exclusion.
3. Attach CL 0620–Standard Fire Exception
In certain states, ensuing fire must be covered even if terrorism
coverage is rejected. In these states special exclusions have been developed to
include ensuing fire for direct damage to building and personal property only.
The states are CA, GA, IL, IA, MA, ME, MO, NJ, NY, NC, OR, RI, WI and WV.