Bill Summary  
Senate Counsel & Research
  Senate  
State of Minnesota




S.F. No. 176 - Terrorism Coverage in Commercial Property Insurance (as amended by the A-1 amendment)
Author: Senator Linda Scheid
Prepared by: Christopher B. Stang, Senate Counsel (651/296-0539)
Date: March 6, 2003

This bill addresses terrorism coverage in insurance policies issued to businesses to cover fire and other damage to business property. It makes coverage against losses caused by terrorism available only as a separate endorsement to the policy, for which a separate premium would be charged. This bill is a response to the federal Terrorism Risk Insurance Act of 2002, enacted in November 2002. That federal act temporarily wipes out any terrorism exclusions in existing policies, requires insurers to offer terrorism coverage separately to commercial customers as an extra-cost endorsement, and provides the insurance industry with backup federal coverage in the event of major terrorism losses.

Section 1 provides that losses caused by terrorism are not covered in a commercial property insurance policy, unless an endorsement is attached to the policy specifically covering losses caused by terrorism.

Section 2 makes the bill effective immediately.

CBS:cs

Check on the status of this bill

Back to Senate Counsel & Research Bill Summaries page

This page is maintained by the Office of Senate Counsel & Research for the Minnesota Senate.

Last review or update: 3/10/2003.

If you see any errors on this page, please e-mail us at webmaster@senate.leg.state.mn.us.