ISO Conditional Terrorism Endorsements to Come into Play with TRIA's Lapse
December 18 2014 - 10:00AM
JERSEY CITY, N.J., December 18, 2014 - ISO
announced today that the termination of the Terrorism Risk
Insurance Program will activate ISO's conditional commercial policy
contract language to address terrorism coverage. With Congress
adjourned for 2014 without taking action on an extension, the
Terrorism Risk Insurance Act (TRIA) is set to expire at the end of
this year. ISO is a Verisk Analytics (Nasdaq:VRSK)
business.
"ISO recognized the uncertainty created by TRIA's
hard ending back in 2004, when the first terrorism insurance act
was in place," said Beth Fitzgerald, president of ISO Insurance
Programs and Analytic Services. "The potential expiration of TRIA
now, as then, creates potential problems in addressing the risk of
terrorism for both insurers and policyholders. ISO's terrorism
portfolio has always recognized that the potential disappearance of
a federal backstop could alter risk midterm and cause a
reevaluation of the ability to cover the terrorism exposure. While
in 2005 and 2007 Congress acted to extend TRIA before it expired,
that was not the case this year."
The terms of ISO's conditional terrorism
endorsements will become applicable on January 1, 2015, to policies
where they are attached and would apply to any losses that occur on
or after that date. The conditional endorsements, first introduced
in 2004, have been available not only for use with those policies
issued earlier this year and that extend beyond TRIA's scheduled
expiration but also for policies with inception dates beginning in
2015. The array of endorsements provides ISO participating insurers
with several options, including:
- an exclusion for losses from acts of
terrorism
- an exclusion for losses from acts involving
nuclear, biological, or chemical terrorism
- a means to cover terrorism losses not otherwise
excluded up to a sublimit
ISO's conditional terrorism endorsements are
available for use by participating insurers in all states except
Florida and New York. In addition, ISO's manuals contain pricing
information applicable to a post-TRIA environment.
"As we have been since 2001, ISO is committed to
providing its customers with a full array of tools to help address
the terrorism exposure," added Fitzgerald. "When the 114th Congress
convenes in January, we will monitor developments closely as they
relate to a potential retroactive renewal of TRIA."
About ISO
Since 1971, ISO has been a leading source of information about
property/casualty insurance risk. For a broad spectrum of
commercial and personal lines of insurance, ISO provides
statistical, actuarial, underwriting, and claims information and
analytics; compliance and fraud identification tools; policy
language; information about specific locations; and technical
services. ISO serves insurers, reinsurers, agents and brokers,
insurance regulators, risk managers, and other participants in the
property/casualty insurance marketplace. ISO is a Verisk Analytics
(Nasdaq:VRSK) business. For more information, visit www.iso.com and
www.verisk.com.
Contact:
Giuseppe Barone/Colleen Finley
MWW Group (for ISO)
201-507-9500
gbarone@mww.com
cfinley@mww.com
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Verisk Analytics Inc. via Globenewswire
HUG#1881743
Verisk Analytics (NASDAQ:VRSK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Verisk Analytics (NASDAQ:VRSK)
Historical Stock Chart
From Apr 2023 to Apr 2024