What it does
IL 09 78 excludes loss or damage caused by a "certified act of terrorism" under the Boiler and Machinery, Commercial Inland Marine, Commercial Property, Crime and Fidelity, Equipment Breakdown and Farm coverage parts and the Standard Property Policy. The definition of a certified act follows TRIA. The act must be certified by the Secretary of the Treasury, involve more than $5 million in aggregate insured losses, and be a violent or dangerous act intended to coerce the U.S. civilian population or influence U.S. government policy or conduct.
How it differs from IL 09 53
The multistate exclusion (IL 09 53) applies "regardless of any other cause or event that contributes concurrently or in any sequence". The Alaska version instead uses a dominant cause approach. A loss may be caused by a chain of causes, and if a Covered Cause of Loss is the dominant cause, the insurer will not deny coverage because a secondary cause in the chain is not covered.
Quoting and selling notes
- Use the Alaska form for Alaska risks when terrorism coverage is rejected. The TRIA disclosure (IL 09 85) still applies.
- Other exclusions, such as nuclear hazard and war, continue to apply.
