Published 26 November 2002
Circular No. 4/2002 27 November 2002
TO THE MEMBERS OF ASSURANCEFORENINGEN GARD -gjensidig-
Dear Sirs
US TERRORISM RISK INSURANCE ACT OF 2002
We refer to Circular No. 3/2002 sent to all Members of the Association on Friday 22 November 2002.
On 26 November 2002, the President of the United States signed into law the Terrorism Risk Insurance Act of 2002 (the "Act"). As outlined in the Memorandum attached to the recent circular, the Act establishes a system of shared public and private compensation for insured losses resulting from certain acts of terrorism for policyholders with commercial property and casualty coverage. The practical effect is that the exclusion in the contract of insurance of the risk of terrorism (see Rule 58 in the Rules for Ships and Rule 41 in the Rules for Mobile Offshore Units) as defined in the Act is invalidated to the extent the Act governs the legal relationship between the Association and the Member.
The Act provides, however, that the terrorism exclusions can be reinstated either
if the Association has received a written statement from the Member that affirmatively authorizes such reinstatement, or
if the Member fails to pay the premium charged by the Association for providing such additional terrorism coverage.
If you do not intend to take this additional terrorism coverage provided by the Act, would you please so inform us in writing at your earliest convenience as follows:
Gard Services AS Servicebox 600 NO, 4809 Arendal Telefax: +47 37 02 48 10 companymail@gard.no
Attention: P&I Underwriting department
US Terrorism Risk Insurance Act of 2002 - Reinstatement of the Terrorism Exclusion in Rule 58 of the Rules for Ships and Rule 41 in the Rules for Mobile Offshore Units We acknowledge and confirm that coverage for acts of terrorism as defined in the US Terrorism Risk Insurance Act of 2002 was made available for us by Assuranceforeningen Gard -gjensidig- acting through its agent, Gard Services AS, and that we have declined to purchase such cover and that we agree to the terrorism exclusion in Rule 58 in the Gard Rules for Ships and/or in Rule 41 in the Gard Rules for Mobile Offshore Units being reinstated with immediate effect. Yours faithfully, Signed on behalf of the Member
We would once again like to emphasise that the Member's P&I war risk cover and the existing special war risk P&I cover in respect of terrorism will continue as at present.
The NOTICE OF COVERAGE OF U.S. ACTS OF TERRORISM AND ADDITIONAL PREMIUM attached to this Circular informs you of your rights and obligations under the Act.
Yours faithfully GARD SERVICES AS As agent only for Assuranceforeningen Gard -gjensidig- Claes Isacson Chief Executive Officer
Gard is a member of
