Identity Fraud Expenses endorsements are offered. (Marketplace: Property/Casualty).

Both the American Association of Insurance Services and Insurance Services Office Inc. are offering insurers endorsements for identity fraud. Identity fraud occurs when an individual's personal identifying information is used without his or her permission to make purchases, borrow money, obtain credit or violate the law.

AAIS, a national insurance advisory organization and statistical agent, is preparing to file its Identity Fraud Expense Coverage endorsements, rules and rating information under the AAIS Farmowners, Homeowners, and Mobile-Homeowners Programs. The filings carry a proposed effective date of March 1, 2003.

The AAIS identity fraud endorsements covered expenses include costs for producing, notarizing, and distributing documents; loan reapplication fees; and attorneys fees. Lost earnings are covered up to $250 a day per insured or $5,000 total.

The coverage is triggered by an occurrence of identity fraud that is discovered during the policy period or up to one year after the policy terminates.

The ISO endorsement for identity-fraud expense coverage will help homeowners, condominium unit owners and renters defray necessary costs for rectifying credit-history reports after becoming victims of identity theft. The optional endorsement provides up to $15,000 of coverage for an insured's expenses directly resulting from an identity fraud discovered or known during the policy period. These expenses include costs for notarizing fraud affidavits or similar documents attesting to fraud; and lost income--up to a maximum of $200 a day and total payments not to exceed $5,000--for time taken off from work to meet with law-enforcement personnel or credit agencies.