TERRORISM: Background: B Life Contracts As a result of the tragic events of September 11, 2001, many states introduced GENERALLY (Auerbach) legislation addressing acts of terrorism. Reinsurance (Wolf) Position: Monitor terrorism laws if (1) requirements are not overly burdensome to Risk Classification company operations; (2) it provides for (McGuffey) “good faith” compliance/noncompliance; (3) it does not impose onerous civil penalties or allows civil actions; and (4) provisions are based on the USA Patriot Act. If otherwise, a position would be determined on a case-by-case basis. Compliance Notes: Bills of interest that do not have policy exclusions include, but are not limited to: legislation regarding money compensation funds; use laundering; victims’ of affidavits in lieu of death certificates; missing policy determination procedures; terrorism loss accounting, financial effects and solvency reviews; modification of benefits or terms regarding disability, long-term care, compensation, unemployment insurance, and retirement funds; worker’s claim practices; and premium payment deadline extensions or modifications. Web Keywords: Terrorism Risk Insurance Act, reinsurance, risk classification. TERRORISM: Background: B Life Contracts If their policies cover loss or disability attributable to terrorism, primary POLICY (Auerbach) EXCLUSIONS insurers may be penalized if they are unable to reinsure their exposure and cannot amend those policies to limit or exclude terrorism losses. Exclusions Reinsurance (Wolf) in general should be defended as traditional risk management techniques. Insurance Contracts: Insurers use exclusions carefully lest they lose market share to others willing Risk Classification Generally to assume the risk. (McGuffey) Policy Form Filing Position: Monitor terrorism exclusions--which are one way for an insurer to manage risk. Terrorism exclusion provisions were introduced in reaction to (1) the events of the 9/11 terrorist attacks; and (2) the decision by reinsurers providing catastrophic coverage to limit or eliminate terrorism risk for the policies being renewed or underwritten. THIRD PARTY Position: B Reinsurance (Wolf) Support NAIC Third Party Administrator Statute which imposes limited coverage ADMINISTRATORS requirements upon anyone who directly or indirectly solicits, effects, underwrites or collects premium for, or who settles claims in connection with, life or health insurance coverage or annuities. Compliance Notes: Third-party administrators are covered within a limited basis in the Reinsurance Service. Web Keywords: third party administrator
TERRORISM: GENERALLY Background: As a result of the tragic events of September 11, 2001, many states introduced legislation addressing acts of terrorism. Position: Monitor terrorism laws if (1) requirements are not overly burdensome to company operations; (2) it provides “good faith” for compliance/noncompliance; (3) it does not impose onerous civil penalties or allows civil actions; and (4) provisions are based on the USA Patriot Act. If otherwise, a position would be determined on a case-by-case basis. Compliance Notes: Bills of interest that do not have policy exclusions include, but are not limited to: legislation regarding money laundering; victims’ compensation funds; use of affidavits in lieu of death certificates; missing policy determination procedures; terrorism loss accounting, financial effects and solvency reviews; modification of benefits or terms regarding disability, long-term care, worker’s compensation, unemployment insurance, and retirement funds; claim practices; and premium payment deadline extensions or modifications. Web Keywords: Terrorism Risk Insurance Act, reinsurance, risk classification. B Life Contracts (Auerbach) Reinsurance (Wolf) Risk Classification (McGuffey) TERRORISM: POLICY EXCLUSIONS Insurance Contracts: Generally Policy Form Filing Background: If their policies cover loss or disability attributable to terrorism, primary insurers may be penalized if they are unable to reinsure their exposure and cannot amend those policies to limit or exclude terrorism losses. Exclusions in general should be defended as traditional risk management techniques. Insurers use exclusions carefully lest they lose market share to others willing to assume the risk. Position: Monitor terrorism exclusions--which are one way for an insurer to manage risk. Terrorism exclusion provisions were introduced in reaction to (1) the events of the 9/11 terrorist attacks; and (2) the decision by reinsurers providing catastrophic coverage to limit or eliminate terrorism risk for the policies being renewed or underwritten. B Life Contracts (Auerbach) Reinsurance (Wolf) Risk Classification (McGuffey) THIRD PARTY ADMINISTRATORS Position: Support NAIC Third Party Administrator Statute which imposes requirements upon anyone who directly or indirectly solicits, effects, underwrites or collects premium for, or who settles claims in connection with, life or health insurance coverage or annuities. Compliance Notes: Third-party administrators are covered within a limited basis in the Reinsurance Service. Web Keywords: third party administrator B Reinsurance (Wolf) limited coverage