50.23—No material difference from other coverage.
(a)
Terms, amounts, and other
coverage limitations. As provided in §
50.20(a)(2), an insurer must offer coverage for
insured losses resulting from an act of terrorism
that does not differ materially from the terms,
amounts, and other coverage limitations (including
deductibles) applicable to losses from other
perils. For purposes of this requirement, “terms”
excludes price.
(b) Limitations on types of risk.
If an insurer does not cover all types of risks,
then it is not required to cover the excluded
risks in satisfying the requirement to make
available coverage for losses resulting from an
act of terrorism that does not differ materially
from the terms, amounts, and other coverage
limitations applicable to losses arising from
events other than acts of terrorism. For example,
if an insurer does not cover all types of risks,
either because the insurer is outside of direct
State regulatory oversight, or because a State
permits certain exclusions for certain types of
losses, such as nuclear, biological, or chemical
events, then the insurer is not required to make
such coverage available.