War & Terrorism

Introduction

Terrorism

Refer to Guy Carpenter Update on Terror Report 2009 for an up-todate review of the terror insurance market.

War

Refer to War Insurance on Land (IUMA 1998)

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Some terms

Export credit insurance
A form of credit insurance that protects an exporter against losses resulting from the inability to collect on credit that has been extended to commercial customers in other countries. Coverage is divided into commercial perils (such as the debtor’s insolvency or refusal to pay) and political perils (such as war or blocked currency). Most foreign credit insurance is provided through government supported programs, but some plans are jointly underwritten by governments and private insurers.

Force majeure
An event or accident beyond any person’s control. (French for “superior force”; same as the Latin term vis major.) It is often understood as natural disasters (or acts of God), but force majeure also includes mass acts of human agency, such as war and civil strife.

Frustration clause
An ocean marine provision that applies when war perils are insured, which states that a loss doesn’t exist simply because of the termination (frustration) of a voyage due to an outbreak of hostilities. For a loss to exist, the goods must have suffered actual physical damage.

Overseas Private Investment Corporation (OPIC)
A federal program to provide political risk insurance on U.S. investments in developing countries. It insures against confiscation, expropriation, devaluation of currencies, war exposures, and other perils.

Political perils
A group of perils under an export credit insurance policy including war, blocked currencies, and other governmental actions that make payment impossible.

War risk accident insurance
Coverage for accidental death, dismemberment or disability for civilians who enter areas with an on-going conflict or risk of war.

War risks insurance
Coverage on ships or cargo against loss or damage by enemy action and against damages sustained in fighting such an action. The perils of war are excluded from most policies.

Insurance Sources

(General – Not necessarily accessible by TCIM)

Other Resources

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