What it does
IL 09 52 modifies the Boiler and Machinery, Commercial Inland Marine, Commercial Property, Equipment Breakdown and Farm coverage parts and the Standard Property Policy. It does not exclude terrorism. It is used when the insured keeps coverage for certified acts. It:
- Defines a "certified act of terrorism": an act certified by the Secretary of the Treasury under TRIA. The criteria include insured losses over $5 million in the aggregate, and a violent or dangerous act committed as part of an effort to coerce the U.S. civilian population or influence U.S. government policy or conduct by coercion.
- Adds the cap. If aggregate insured losses from certified acts exceed $100 billion in a calendar year and the insurer has met its TRIA deductible, the insurer is not liable for any portion above $100 billion. Losses up to that amount are subject to pro rata allocation under Treasury procedures.
Who sees it
Any property account that accepts TRIA terrorism coverage. It appears alongside the TRIA disclosure (IL 09 85 or IL 09 99).
Quoting and selling notes
- Coverage for terrorism losses still depends on the other policy provisions. Nuclear hazard and war exclusions, for example, continue to apply.
- Acts that are not certified under TRIA are treated like any other cause of loss under the policy, subject to its terms.
