The Insurance Services Office Inc. said it is filing new forms with state regulators that will be compliant with changes Congress has made in extending the law providing government payments to insurers after a catastrophic terrorism loss.
The Jersey City, N.J.-based ISO said it began today to submit form and rule filings that revise its terrorism programs in response to the reauthorization measure approved by Congress yesterday. The president is expected to sign the bill.
At the end of the year the current law is due to lapse. ISO Senior Vice President Kevin Thompson, noting the act’s Dec. 31 expiration date, said ISO has been closely monitoring Congressional action. “We recognize the need for prompt access to compliant products, and that is why we’ve geared up to file as quickly as we have.”
The new forms and rules will reflect the extension of the legislation for an additional seven years; revise the criteria for certification of an act of terrorism by eliminating the distinction between foreign and domestic acts; include an additional disclosure requirement; and reinforce the $100 billion cap on aggregate insured losses, among other changes.
The new forms will include revised policy endorsements for use by insurers in meeting the new law’s requirements to make available coverage for certified acts of terrorism not previously covered, ISO said.
The filings also include revisions to the required disclosures, an endorsement setting forth the $100 billion cap, and revised exclusion endorsements.