ISO is providing coverage and pricing tools to help insurers respond to the Terrorism Risk Insurance Act of 2002, which became law on November 26, 2002.
Forms and Policywriting Rules
ISO has filed — on behalf of companies that have authorized us to do so — commercial lines policy forms for use in existing, new, and renewal policies. We have filed the forms in two sets:
We have also filed complementary policywriting rules, in two sets.
And we have developed sample disclosure notices for insurer use, as the act requires. We have submitted the disclosure notices to regulators for information.
ISO has also filed — for use by participating insurers — advisory loss costs and/or rating factors, for losses from "certified acts of terrorism." The information incorporates output from the recently released AIR Terrorism Loss Estimation Model, developed by ISO's subsidiary AIR Worldwide Corporation, as well as other information developed by ISO.
Status of the Filings
Follow the links for information on the status of the filings:
Highlights of the legislation
TRIA creates a federal backstop for insured losses caused by acts of international terrorism certified by the Secretary of the Treasury. The law:
The deductible will vary by company and by year. The coinsurance will be 10 percent of losses exceeding the deductible.
...on ISO's response to the Terrorism Risk Insurance Act of 2002, watch this website. We will post frequent updates on our filings and regulatory action on them.