What it does
CG 21 75 01 15 combining the certified acts of terrorism exclusion with an exclusion of other acts of terrorism committed outside the United States. It is used when the insured rejects TRIA coverage and the carrier also excludes foreign terrorism.
Who needs it
All commercial accounts. Larger urban, hospitality, venue, healthcare and infrastructure risks pay the most attention to terrorism terms.
Key provisions and limits
- Not available in every state.
- A "certified act of terrorism" is an act certified by the Secretary of the Treasury under the federal Terrorism Risk Insurance Act; the criteria in the ISO forms include insured losses over $5 million in the aggregate and a violent act committed to coerce the U.S. civilian population or influence U.S. government policy.
Quoting and selling notes
- Under TRIA, insurers must offer certified terrorism coverage; the insured can accept or reject it. Keep the signed offer and rejection forms (IL series) with the file.
- Clients with foreign travel or operations should review this exclusion together with any worldwide coverage endorsement.
