What it is
IL 09 97 is the sub-limit member of ISO's three "conditional" terrorism endorsements tied to the disposition of the federal Terrorism Risk Insurance Act:
- IL 09 95: conditional exclusion of terrorism.
- IL 09 96: conditional exclusion of terrorism involving nuclear, biological or chemical means.
- IL 09 97: conditional limitation of terrorism coverage to a sub-limit on an annual aggregate basis.
As with the other conditional forms, its terms take effect only if the federal program's status changes as the endorsement specifies during the policy period. The sub-limit approach mirrors the unconditional sub-limit endorsement IL 00 32, which caps terrorism losses at a scheduled annual aggregate amount, and the certified-acts version IL 09 87.
Quoting and selling notes
- Compare any scheduled sub-limit with the values at the client's largest locations.
- Check which conditional form, if any, the carrier attaches, and review its effect when the federal program approaches expiration or reauthorization.
