Section 4.42 Terrorism Risk Insurance Act of 2002

• Library: Construction Law 2016 Supp

B. (§4.42) Terrorism Risk Insurance Act of 2002

Following the September 11^th disaster, insurance companies moved quickly to address terrorism exposures under their commercial liability and property insurance lines of business. Insurance Services Office, Inc. (ISO) was busy, too. After several renditions, ISO replaced its war exclusions under its standard commercial property and general liability insurance forms with new “Exclusion of War, Military Action and Terrorism” and “War or Terrorism Exclusion” endorsements respectively. They were filed in late December 2001, with state approval occurring quickly in a majority of the states, Guam, Puerto Rico, and the District of Columbia so that they could begin to be used for insurance renewals that would take place in early 2003.

In response to these and other similar developments, to address financial market uncertainties and to stabilize the United States economy, Congress passed the...