What it does
Some states do not allow an auto policy to exclude terrorism below the limits required by compulsory insurance or financial responsibility laws. CA 23 86 applies the terrorism exclusion only to the portion of coverage above those minimum statutory limits. Below them, the policy responds as required by law.
Where it is used
The 10 13 edition is used in Connecticut, Kansas, Kentucky, New Jersey, Oklahoma and Oregon, and the 01 06 edition in Hawaii. The Massachusetts residual market (CAR) requires CA 23 86 10 13 on its business auto, motor carrier and auto dealers programs.
Selling notes
- Explain to insureds in these states that terrorism losses are covered only up to the state minimum limits, not the full policy limits, when this endorsement is attached.
- The nuclear, biological or chemical only version is CA 23 87.
- Check how the umbrella policy treats terrorism above the auto limits.
