What it does
IL 09 87 provides certified-acts terrorism coverage subject to a Certified Acts Sub-Limit instead of the full limits of insurance. When coverage applies to loss caused by a "certified act of terrorism", the full limit on the affected property or coverage does not apply. The sub-limit is the most paid for all such loss in an annual policy period, even if another covered cause of loss contributes.
Key provisions
- The sub-limit is an annual aggregate. Any balance not used by one act is available for later acts in the same annual period. An act that begins in one period and continues into the next draws only on the earlier period's sub-limit.
- Coverage extensions and additional coverages do not increase the sub-limit.
- In states listed in Part II of the Schedule, the sub-limit does not apply to certain fire losses.
- Other exclusions, such as nuclear hazard and war, still apply.
Quoting and selling notes
- Insurers with concentration concerns in urban areas may offer terrorism coverage only on a sub-limited basis. Compare the sub-limit with the client's largest building values.
- Stand-alone terrorism policies can fill gaps above the sub-limit.
- IL 00 32 is the parallel sub-limit endorsement for terrorism outside the TRIA framework.
