San Francisco, CA – The Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA) was enacted in 2007 and, in the absence of Congressional action, will expire on December 31, 2014. It is unknown at this time whether Congress will take action regarding TRIPRA.
The WCIRB submitted the Notification Endorsement of Pending Law Change to Terrorism Risk Insurance Program Reauthorization Act of 2007 (WC 00 01 14) and Notification Endorsement of Pending Law Change to Terrorism Risk Insurance Program Reauthorization Act of 2007 – California (WC 04 01 05) endorsement forms to the Insurance Commissioner for approval on behalf of its membership. These forms may be used to notify policyholders of the impending expiration of TRIPRA and that, if it expires, a premium charge for losses that may occur in the event of certain acts of terrorism may either continue to apply or change from the amount currently applied.
The difference between the forms is that WC 00 01 14 references the multi-state TRIPRA form (WC 00 04 22 A) and WC 04 01 05 references the California specific TRIPRA forms (WC 04 01 01 and WC 04 04 16). In addition, WC 04 01 05 excludes a reference to Pennsylvania law that is included in the multi-state notice. Insurers must determine which one is most appropriate for use on their policies.
The California Insurance Commissioner has approved these endorsements. Insurers may file these forms with the WCIRB and may use them after receiving the WCIRB’s notification to the Commissioner indicating that the insurer intends to use the form. These forms are advisory and insurers are not obligated to use them.
For more information, see WCIRB Bulletin 2013-15 Standard Forms – California, Notification Endorsement of Pending Law Change to Terrorism Risk Insurance Program Reauthorization Act of 2007 issued on August 14, 2013.