Insurers including those writing farm and crime coverages that use programs developed by the American Association of Insurance Services will require no immediate changes to existing endorsements and other materials to comply with the recent extension of the federal terrorism reinsurance backstop.
AAIS is a national advisory organization that develops property/casualty forms and rating information, including those used to provide or exclude coverage under the Terrorism Risk Insurance Program, a program created after the Sept. 11th attacks and recently extended through 2007.
The biggest change directly affecting AAIS members is the recent elimination of farm and crime coverage from the federal program. AAIS affiliates for its farm lines and commercial crime program already have use of “post-TRIP” terrorism endorsements filed and approved in most states for policies that take effect on or after Jan. 1, 2006.
For other AAIS agribusiness, commercial lines, and inland marine programs still covered under TRIP, existing endorsements and rating information remain in effect for addressing “certified” and “non-certified” terrorism losses. Also, existing endorsements addressing “certified” terrorism coverage remain in effect for use with the Dwelling Properties and Personal & Premises Liability programs for premises regularly rented or held for rental to others.
AAIS will take filing action in 2006 to update endorsements and policyholder notices for use on policies that will take effect in 2007. Existing policyholder notices and premium disclosure endorsements can be used with policies that expire on or before Dec. 31, 2006.
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