Is terrorism reinsurance payable on non-eligible sections of an otherwise eligible policy?
If the there is a separate non-eligible section of an otherwise eligible policy and you can identify the premium for that non-eligible section, the reinsured will not have to pay us terrorism reinsurance premium for the non-eligible part. For example, a Fire policy that provides cover for both commercial buildings and for motor vehicles could not be split as the cover is only for Fire. However a policy which has separate sections for Fire on commercial buildings and a separate Motor Vehicle insurance cover (which is excluded from the Act) could be split into eligible and non-eligible components. In this case, if the overall character of the policy is “eligible”, the ARPC premium would be payable on the Fire cover only and not on the Motor cover. We recommend that you must first determine if the overall character of the policy is eligible and that you seek your own legal advice if you are unsure of the eligibility of the policy.
Related Questions
- Do insurers pay terrorism reinsurance premium on the entire original premium of an eligible policy even though part of the policy has been ceded to facultative or treaty reinsurers?
- What is EPA policy regarding whether an organization that previously received funding for a particular project is eligible to apply for funding under this RFP for the same project?
- Is terrorism reinsurance payable on non-eligible sections of an otherwise eligible policy?
