1. Forms
2. CU
3. CU-21-34

What the form is

The CU 21 34, titled "Exclusion of Certified Acts of Terrorism And Other Nuclear, Biological or Chemical Acts of Terrorism," is an endorsement that attaches to a commercial insurance policy. Its primary function is to remove coverage for bodily injury, property damage, or other losses arising from specific types of terrorist acts. This includes acts certified as terrorism by the relevant governmental authorities (e.g., under the Terrorism Risk Insurance Act - TRIA - in the United States) and, significantly, other acts involving nuclear, biological, or chemical (NBC) weapons or materials that may not meet the criteria for official certification but are still considered acts of terrorism.

Classes of business it applies to

This exclusion can be applied to a wide range of commercial insurance policies where terrorism exposure is a concern. While the specific lines are not detailed in the search results for CU 21 34, terrorism exclusions of this nature are commonly found in:

• Commercial General Liability (CGL) policies
• Commercial Property policies
• Commercial Umbrella or Excess Liability policies (the "CU" prefix could suggest Commercial Umbrella)
• Boiler and Machinery or Equipment Breakdown policies
• Commercial Inland Marine policies

It would be relevant for nearly any type of business, but particularly those with higher perceived terrorism exposures, such as businesses in major metropolitan areas, critical infrastructure, transportation, large public venues, or industries dealing with hazardous materials.

Special considerations

Several important points should be considered when this form is used:

• Definition of "Certified Act of Terrorism": This is a critical element, typically defined by law (like TRIA in the U.S., which involves a formal declaration by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General). The exclusion hinges on this specific definition for one part of its scope.
• Scope of NBC Coverage: The form also excludes NBC terrorism acts even if they are not certified. This is a broader exclusion than just certified acts.
• TRIA and Reauthorizations: The use and wording of terrorism endorsements are heavily influenced by federal legislation like the Terrorism Risk Insurance Act (TRIA) and its subsequent reauthorizations (TRIPRA). These laws often mandate that insurers offer terrorism coverage, and exclusions like CU 21 34 are used when such coverage is rejected or to define the boundaries of what is covered or excluded.
• State Specificity: The notation "(NC)" in one of the search results suggests that there might be state-specific versions or that this particular filing was for North Carolina. While the underlying ISO form might be available in multiple states, variations can exist.
• Coverage Buy-Back: In some cases, insureds may have the option to buy back some level of terrorism coverage, which would be specified in a separate endorsement and would interact with this exclusion.

Key information for agents and underwriters

• Clarity for Insureds: Agents must clearly explain the significant impact of this exclusion. Insureds need to understand what constitutes a "certified act of terrorism" versus other NBC events and the resulting lack of coverage for these perils under the policy if this endorsement is attached.
• Risk Assessment: Underwriters need to assess the overall terrorism exposure of a risk. Even with this exclusion, understanding the potential for uncovered losses is important for a complete risk profile.
• Interaction with Other Coverage: Determine how this exclusion interacts with any other terrorism-related endorsements or policies the insured may have (e.g., a standalone terrorism policy).
• Regulatory Compliance: Ensure compliance with all federal and state regulations regarding terrorism coverage offers and exclusions.
• Coverage Gaps: This form creates a significant coverage gap for terrorism-related losses. Agents should discuss potential alternatives if the insured has a need or desire for this type of coverage, such as specific terrorism insurance policies.
• Pricing: The attachment of this exclusion generally means that the premium does not contemplate coverage for the excluded events. Any buy-back of terrorism coverage would be separately priced.