ISO Conditional Terrorism Endorsements to Come into Play with TRIA’s Lapse

JERSEY CITY, N.J., December 18, 2014 — ISO announced today that the termination of the Terrorism Risk Insurance Program will activate ISO’s conditional commercial policy contract language to address terrorism coverage. With Congress adjourned for 2014 without taking action on an extension, the Terrorism Risk Insurance Act (TRIA) is set to expire at the end of this year. ISO is a Verisk Analytics (Nasdaq:VRSK) business.

“ISO recognized the uncertainty created by TRIA’s hard ending back in 2004, when the first terrorism insurance act was in place,” said Beth Fitzgerald, president of ISO Insurance Programs and Analytic Services. “The potential expiration of TRIA now, as then, creates potential problems in addressing the risk of terrorism for both insurers and policyholders. ISO’s terrorism portfolio has always recognized that the potential disappearance of a federal backstop could alter risk midterm and cause a reevaluation of the ability to cover the terrorism exposure. While in 2005 and 2007 Congress acted to extend TRIA before it expired, that was not the case this year.”

The terms of ISO’s conditional terrorism endorsements will become applicable on January 1, 2015, to policies where they are attached and would apply to any losses that occur on or after that date. The conditional endorsements, first introduced in 2004, have been available not only for use with those policies issued earlier this year and that extend beyond TRIA’s scheduled expiration but also for policies with inception dates beginning in 2015. The array of endorsements provides ISO participating insurers with several options, including:

  • an exclusion for losses from acts of terrorism
  • an exclusion for losses from acts involving nuclear, biological, or chemical terrorism
  • a means to cover terrorism losses not otherwise excluded up to a sublimit

ISO’s conditional terrorism endorsements are available for use by participating insurers in all states except Florida and New York. In addition, ISO’s manuals contain pricing information applicable to a post-TRIA environment.

“As we have been since 2001, ISO is committed to providing its customers with a full array of tools to help address the terrorism exposure,” added Fitzgerald. “When the 114th Congress convenes in January, we will monitor developments closely as they relate to a potential retroactive renewal of TRIA.”

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Since 1971, ISO has been a leading source of information about property/casualty insurance risk. For a broad spectrum of commercial and personal lines of insurance, ISO provides statistical, actuarial, underwriting, and claims information and analytics; compliance and fraud identification tools; policy language; information about specific locations; and technical services. ISO serves insurers, reinsurers, agents and brokers, insurance regulators, risk managers, and other participants in the property/casualty insurance marketplace. ISO is a Verisk Analytics (Nasdaq:VRSK) business. For more information, visit and


Giuseppe Barone/Colleen Finley
MWW Group (for ISO)

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