1. Forms
2. WC
3. WC-00-04-22

What the Form Is

The WC 00 04 22A is an endorsement to the standard Workers Compensation and Employers Liability Insurance policy. Its primary purpose is to comply with the disclosure requirements of the Terrorism Risk Insurance Act of 2002 (TRIA) as reauthorized by the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA 2007). This form notifies the policyholder that their policy provides coverage for workers' compensation losses resulting from "certified acts of terrorism" as defined by the Act. It also discloses that a specific premium charge is made for this coverage and explains certain limitations and aspects of the federal program, such as the federal government's share in compensating for such losses.

Classes of Business It Applies To

This endorsement applies broadly to virtually all employers who purchase Workers Compensation and Employers Liability insurance in states where this specific endorsement version was approved and in use. Since TRIA and its reauthorizations are federal laws with wide applicability to commercial insurance, this disclosure was a standard component of workers' compensation policies. Real-world examples include:

• Manufacturing companies
• Retail stores
• Office-based businesses (e.g., law firms, tech companies)
• Construction contractors
• Healthcare facilities
• Educational institutions

Essentially, any business with employees that could be affected by a certified act of terrorism would have had this endorsement or a similar one attached to their policy during the period this version was current.

Special Considerations

Key considerations for the WC 00 04 22A include:

• Superseded Form: This specific version (22A) is linked to the 2007 reauthorization of TRIA. TRIA has been subsequently reauthorized and amended (e.g., in 2015 and 2019). Consequently, the WC 00 04 22A has been replaced in most, if not all, jurisdictions by later editions of the endorsement, such as WC 00 04 22B and WC 00 04 22C, to reflect the current status of the law.
• Mandatory Disclosure: During its effective period, use of this endorsement or an equivalent was generally mandatory to ensure compliance with federal TRIA disclosure requirements.
• Premium Disclosure: The endorsement explicitly states that a premium is charged for the terrorism coverage provided under TRIA. This premium amount would typically be shown on the Information Page or in the endorsement's schedule.
• Scope of Coverage: It's important to understand that this endorsement confirms coverage as dictated by TRIA and state workers' compensation laws. The actual definition of a "certified act of terrorism" is determined by the federal government (specifically the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General).

Key Information for Agents and Underwriters

• Compliance: For agents, the primary role was to ensure this endorsement was properly attached to all applicable new and renewal policies during its currency, ensuring policyholders were correctly informed as per federal law.
• Client Communication: Agents needed to be prepared to explain the endorsement to clients, particularly the fact that terrorism coverage for certified acts was included and that there was a premium associated with it.
• Underwriting and Pricing: Underwriters would recognize this as a standard disclosure. While the endorsement itself doesn't typically involve individual risk underwriting for terrorism (as TRIA provides a federal backstop), the premium for terrorism coverage was a component of the overall policy cost. Insurers would calculate this premium based on their filed rates for terrorism coverage.
• Version Control: Given that TRIA has been reauthorized multiple times, it was crucial for underwriters and policy processing units to use the correct version of the disclosure endorsement (e.g., 22A, then 22B, then 22C) corresponding to the TRIA iteration in effect at the time of policy issuance or renewal. Using an outdated version could lead to compliance issues.