Terrorism Coverage


Terrorism Coverage

ACORD provides 4 forms related to Terrorism Coverage. They are:

ACORD 60 US, ACORD 62 US, ACORD 64 US, ACORD 66 US

When to use each Terroism Coverage form

The ACORD 60 US is the most commonly used form. It is used unless one of the other forms is called for. So, I will explain when the other Terrorism Coverage forms are to be used first, and if they are not called for, you always use the ACORD 60 US.ACORD 62 US is used with the Standard Fire Policy.

ACORD 64 US is used with Workers Compensation Coverage.

ACORD 66 US is used for Commercial Auto Coverage in the following states: Arkansas, Connecticut, Hawaii, Kansas, Kentucky, New Jersey, New York, Oregon

ACORD 60 US is used for all policies not listed above.

Basic Purpose of the Terrorism Coverage Forms

After the 9 11 attack on the World Trade Center, the federal Terrorism Risk Insurance Act of 2002 was passed. The act created a mechanism for the federal government to share the risk of loss with the insurance industry from defined acts. The act also requires disclosure of coverages available and premiums charged for Terrorism coverage. These four forms provide that disclosure.———–SIDEBAR————-

If a loss occurs under Terrorism Coverage, the federal government pays 90% and the insurance company pays 10% of the loss up to the policy limits.When does Terrorism Coverage Apply?


The federal Terrorism Risk Insurance Act of 2002 says “The Act applies when the Secretary of the Treasury certifies that an event meets the definition of an act of terrorism. The Act provides that, to be certified, an act of terrorism must cause losses of at least five million dollars and must have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest to coerce the government or population of the United States.”Does the Insured have to accept Terrorism Coverage?

No. The insured can reject the coverage by signing on the appropriate line on the Terrorism Coverage forms. Also, if the insured does not pay the premium indicated for the Terrorism Coverage, the coverage will be considered rejected.Special Provisions of ACORD 66 US

In the states requiring ACORD form 66 US, limited Terrorism Coverage applies based on the following wording that is a part of ACORD 66 US.”For Liability, Uninsured and/or Underinsured Motorists Coverage and Personal Injury Protection Coverage in this state, the terrorism exclusion applies above the minimum limits required for these coverages by the state’s Financial Responsibility Statutes and/or Motor Vehicle Liability Insurance Statutues. Therefore, if you reject the offer of terrorism coverage, that rejection does not apply to losses resulting from an act of terrorism, for limits up to the minimum state compulsory limits of insurance for Liability, Uninsured and/or Underinsured Motorists and Personal Injury Protection Coverage.”

ACORD forms are all available to you at…..

Terrorism Coverages and other Free ACORD Forms

Links to other Learning Pages

ACORD Binder
ACORD Cancellation Request
ACORD Certificates of Insurance
ACORD Evidence of Insurance
ACORD Financial Responsibility Form
ACORD Loss Notice
ACORD Information Practices