AVN 52 extended coverage endorsement
The endorsement that writes back into an aviation liability policy the war and hijacking perils excluded by clause AVN 48B, under a separate sublimit.
September 11, 2001: within days the market exercised the seven-day notice and canceled third party war liability cover worldwide. It came back under AVN 52 with a sublimit of 50 million dollars per airline, and governments filled the gap with temporary public backstops. The starting point is clause AVN 48B, which excludes from the aviation policy war, strikes, riot, hijacking, sabotage and terrorism. An airline that stopped there would get past neither its regulator nor its lessors. AVN 52 writes those perils back on the liability side, under a sublimit of its own, per occurrence and in the aggregate. The seven-day notice stays, and cover terminates automatically on open war between the major powers. The successive versions, AVN 52E among them, mainly served to reset that sublimit after 2001. Nobody wants to write this peril without limit and no operator can fly without it: the short sublimit and the seven-day exit are what make it writable.
In the days following September 11, 2001, insurers, stripped of their own reinsurance, exercised the seven-day notice and canceled third party war liability cover worldwide. It was reinstated under AVN 52 with a sublimit of 50 million dollars per airline, far below prevailing civil limits, and governments opened temporary public backstops to fill the gap.
Follow the research
One letter a week. First, the week's underwriting note, when one is published: a dated, argued decision, signed by Paul Bernardski. Then what the observatory published on cyber risk, political risk and insurance. No account, no tracking.
No spam, one-click unsubscribe, no data ever sold.