BACKGROUND EXPLANATION STRIKES, RIOTS AND CIVIL COMMOTIONS FORM 11A (CARGO) 

TRIA FORM 

With the passage of the Terrorism Risk Insurance Act (TRIA) on November 26, 2002, all exclusions for terrorism in the Open Cargo Policy were rendered void with respect to “insured losses” as defined in the ACT. The Act provides a federal backstop for the insurance industry in the event of a terrorist act as defined by the Act. In return for providing that backstop, the Act stated that coverage for terrorism must be offered in all policies for “insured losses” and such coverage may not differ materially from the terms, amounts and other coverage limitations applicable to losses arising from events other than acts of terrorism. 

The risk of terrorism in the Open Cargo Policy is addressed in the Strikes, Riots & Civil Commotion’s (SR&CC) Warranty located in the body of the policy and in the Strikes, Riots & Civil Commotion’s (SR&CC) Endorsement attached to the form. In order to be in compliance with TRIA, AIMU has authored a new SR&CC Endorsement (Form No. 11A, TRIA Form). The new form simply removes the exclusion for coverage of “insured losses” that would otherwise be covered under the Endorsement caused by certified acts of terrorism as defined in the Act.