What it does
IL 09 86 sits between full TRIA coverage (IL 09 52) and full exclusion (IL 09 53). It modifies the Boiler and Machinery, Inland Marine, Commercial Property, Crime and Fidelity, Equipment Breakdown and Farm coverage parts and the Standard Property Policy:
- Limited exclusion: loss caused directly or indirectly by a certified act of terrorism is excluded only when the act is carried out by dispersal or application of radioactive material or a nuclear weapon or device, releases radioactive material, or uses or releases pathogenic or poisonous biological or chemical materials.
- Cap: covered certified-act losses are subject to the $100 billion annual TRIA cap with pro rata allocation.
- Fire exception: in states listed in the Schedule, fire resulting from an excluded certified act is covered for direct damage only, not for business income or extra expense.
Quoting and selling notes
- Use it when an insurer will offer TRIA coverage but not for nuclear, biological, chemical or radiological events.
- Explain to the client which attack types remain covered and that the nuclear hazard and war exclusions still apply.
- IL 00 31 is the comparable exclusion for terrorism outside the TRIA certification framework.
