The American Association of Insurance Services said that changes made to the Terrorism Risk Insurance Act will not require any immediate adjustments to existing endorsements and other materials it provides.
Congress passed legislation extending the program for two years, with some changes, shortly before lawmakers left for the holidays, and President Bush signed the bill on Dec. 22.
The most significant change for AAIS members, the group said, was the elimination of farm and crime coverage from the federal Terrorism Risk Insurance Program, although the group noted that its affiliates in those areas already have access to "post-TRIP" terrorism endorsements filed and approved in most states for policies taking effect on or after Jan. 1.
For other programs that remain under the TRIP umbrella, the AAIS said that existing endorsements and rating information addressing "certified" and "non-certified" terrorism losses remain in effect.
Additionally, the group's existing endorsements addressing "certified" terrorism coverage remain in effect for use with the Dwelling Properties and Personal & Premises Liability programs for rental properties.
Looking forward, the AAIS said that in 2006 it will act 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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