National Report

Personal Lines Terrorism Exclusions Fail to Win NAIC Endorsements In late January, members of the National Association of Insurance Commissioners came to an agreement regarding how to handle filings for terrorism exclusions on personal lines and automobile policies, with 45 of them deciding not to endorse terrorism exclusions. “It is the sense of the NAIC membership that terrorism exclusions are generally not necessary in personal lines property and casualty products to maintain a competitive market, and they may violate state law,” said Terri Vaughan, NAIC President and Iowa Insurance Commissioner. “However, we recognize that state laws vary in their authority and discretion. Further, there may be unique company circumstances that need to be considered in individual cases. We expect these cases to be limited.”