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 Posted: Tue Mar 02, 2010 8:42 am Post subject: TRIA updates and the new provisions |
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An online search regarding TRIA updates has failed to provide me with the provisions added under it. On what basis should one select such coverage policies?
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Blackrancho
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| Posted: Tue Mar 02, 2010 8:00 pm Post subject: |
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The Terrorism Risk Insurance Act of 2002 (TRIA) has been extended through the passage of the Terrorism Risk Insurance Program Reauthorization Act. This extends coverage under the program through 12/31/2014.
TRIA is not an insurance policy from which you "buy" coverage. What it is is a federal reinsurance backstop created to provide a reinsurance mechanism for private insurers that suffer terror-related losses that exceed a certain dollar amount following what's referred to as a "declared terrorism event" by the federal government.
| Quote: | | A "declared terrorism event" has been defined as an "any act certified by the Secretary of Treasury, in concurrence with the Secretary of State and Attorney General, to be an act that is dangerous to human life, property, or infrastructure and to have resulted in damage within the U.S. (or outside the U.S. in the case of a U.S.-flagged vessel), or on the premises of a U.S. mission. |
This is courtesy of the federal government's website. Thank you, Fed Gubmint.
There are various triggers that would call for payment under the act and the list of triggers and events as well as a lot of additional TRIA information available at
http://www.ustreas.gov/offices/domestic-finance/financial-institution/ terrorism-insurance/
Interesting stuff, especially post 9/11 which triggered the legislation.
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InsTeacher
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| Posted: Wed Mar 03, 2010 10:27 am Post subject: |
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Well, some of the provisions have been modified under the '07 extension.
It mandated that the deductible for an insurer would be fixed at 20% of the premium that was directly earned by the insurer. According to it the federal govt. has to compensate 85% of the worth of insured losses exceeding the deductibles of the carrier. |
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steven
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| Posted: Thu Mar 04, 2010 1:06 pm Post subject: |
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Once the insured losses cross the $100 billion mark, then the US treasury has to propagate regulations in order to arrive at the pro-rata shares of such losses. This is certainly one of the most significant updates.
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Pinkfloydfan
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| Posted: Fri Mar 05, 2010 7:35 am Post subject: |
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| Quote: | This is certainly one of the most significant updates.
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Another one-
The cost-effectiveness and availability of Terrorism risk coverage in the long run has to be assessed by the Financial Markets Working Group quite consistently.
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sil
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