Property/casualty insurers who want information on implementing the new federal terrorism reinsurance program can go to www.AAISonline.com, the Web site of the American Association of Insurance Services (AAIS).
All insurers, whether they are members of AAIS or not, will be able to read bulletins drafted by AAIS technical specialists regarding compliance with the Terrorism Risk Insurance Act of 2002 and state bulletins related to it.
The act, which creates a federal reinsurance liquidity program for commercial insurance losses arising from designated acts of terrorism, was passed last month by both houses of Congress and signed by President Bush last week. The National Association of Insurance Commissioners (NAIC) is preparing a model bulletin addressing procedural issues for implementing the act. Many state insurance departments are expected to pattern their regulatory bulletins after the NAIC model.
The first AAIS bulletin, released Nov. 25 and now posted on www.AAISonline.com, summarizes the impact of the new law in five areas:
· Its immediate impact on new and renewal business;
· Its impact on policies in effect at the time of the law’s enactment;
· Rules regarding multi-state accounts;
· The classification of farm policies as “commercial lines;” and
· Its implications for statistical reporting.
AAIS has begun developing endorsements, manual supplements, and disclosures for use by its commercial lines affiliates in implementing the federal reinsurance law, but must await promulgation of rules by state insurance departments before taking filing action.