Where filings with regulators originally included a complete terror exclusion, they will now include a $25 million threshold of insured damage before the exclusion will apply, noted a representative for the Jersey City, N.J.-based ISO, Christopher Guidette.

In addition, there would be a second threshold to exclude liability, which would apply if 50 or more persons are seriously injured in a terrorist attack at the insured's premises.

Mr. Guidette said that the intent of the changes was to provide coverage for smaller events such as the bombing of an abortion clinic, for example, which might be defined as terrorism.

He noted that the original policy filing had taken place in November and December when it was thought that Congress would act to have the federal government act as a backstop for primary insurers who take on terrorism risk.

Mr. Guidette said the ISO-amended policy language was drawn up in consultation with the National Association of Insurance Commissioners during meetings, which concluded on Dec. 21, 2001.

The latest ISO policy form is available to non-ISO member companies at no cost if they sign a license agreement, Mr. Guidette said.