Roundup: MBA Urges Standards for Terror Reporting.

The MBA is working with ACORD to standardize ACORD's insurance reporting form for terrorism insurance coverage.

ACORD is a "nonprofit organization that deals with insurance providers," according to Deborah McKinnon, a vice president with the MBA's commercial/multifamily group.

The organization provides an insurance reporting form and the current ACORD 27 form or "Evidence of Property Insurance form," which is used extensively in the commercial and multifamily arena as evidence of having insurance on commercial properties and uses a "narrative style," which requires a "great deal of interpretation," Ms. McKinnon said.

And when the form is received by the servicer, the format is also amenable to "additional interpretation."

The MBA's goal now is to have a "standard form that provides enhanced clarity," which is why they are pushing for an updated ACORD 28 form or "Evidence of Personal Property Insurance" form.

The revised form would replace ACORD 27's open-ended format with a "checklist" format "to foster a clear and concise description of existing property insurance that includes types of coverage, limits, deductible amounts and exclusions," the MBA reports.

The mortgage banker trade group is now in discussions with interested parties to get additional comment on the initiative, Ms. McKinnon said.