783:: The industry as a whole must cover a certain amount of the losses before federal assistance is available. This amount rises from $ 15 billion in 2005 to $ 25 billion in 2006 and rises again in 2007 to $ 27.5 billion. The difference between this amount and the aggregate amount that insurers must pay (deductibles and co-payments) can be recouped from commercial policyholders through a surcharge not to exceed 3 percent of premium for insurance coverages that fall under the TRIEA program. This reinsurance takes the form of a 90 percent quota share in excess of variable deductibles based upon a percentage of earned premium income.
35:
592:, 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, aircraft or premises of a U.S. mission). It must be committed as part of an effort to coerce U.S. civilians or to influence either policy or conduct of the U.S. Government through coercion. The definition includes both foreign and domestic terrorists. The Secretary may not delegate this certification authority and his or her decision to either certify or not certify an act of terrorism is not subject to judicial review.
771:: Program is triggered following occurrence of event determined by Secretary of the Treasury, Secretary of Homeland Security, and the U.S. Attorney General to be act of terrorism. Losses from the act must exceed $ 50 million in 2006, $ 100 million in 2007, $ 120 million in 2016, $ 140 million in 2017, $ 160 million in 2018, $ 180 million in 2019, and $ 200 million with respect to losses occurring in calendar year 2020 and any calendar year thereafter (15 U.S.C. §6701 note, §103(e)(1)(B)).
795:: When program is triggered, Federal government is to pay 90% of insured terrorism losses in excess of individual insurer trigger/deductibles while the insurer pays 10%. In 2007, this rises to 85%/15%. In 2016, this 85% shall decrease by 1 percentage point per calendar year until equal to 80% (15 U.S.C. §6701 note, §103(e)(1)(A) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note)).
688:
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424:. The Act "provides for a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism." The Act was originally set to expire December 31, 2005, was extended for two years in December 2005, and was extended again on December 26, 2007. The Terrorism Risk Insurance Program Reauthorization Act expired on December 31, 2014.
498:, business insurers generally neither charged for nor specifically excluded terrorism coverage. The scope of the 9/11 attacks and the resulting $ 40 billion estimated insured loss changed perceptions dramatically. It was the worst terrorist attack on record for both property and fatalities and the worst international attack on American soil since the
801:: Recoupment to be through surcharges of up to 3% of annual premiums on all policyholders. Mandatory recoupment for all amounts provided to insurers under industry-wide retention. No mandatory recoupment of uncompensated losses in excess of industry-wide retention. Secretary of the Treasury has discretion to recoup additional amounts.
529:
Congress responded by enacting TRIA in
November 2002 to provide a government reinsurance backstop in case of large-scale terrorist attacks, requiring that business insurers offer terrorism coverage for the types of insurance included in the act. Congress extended and amended TRIA in December 2005 and
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Many businesses were not able to purchase insurance protection against future terrorist attacks. This situation was a serious threat to industries where lenders and investors required terrorism protection for their investments. Real estate, transportation, construction, energy, and utility sectors of
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The act expired on
December 31, 2014, but was renewed at the start of the next congress, with President Barack Obama signing the extension on January 12, 2015. Many experts warn that "construction projects could be stalled and commercial loans on shopping malls, utilities and skyscrapers could be in
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Much of the financial cost from the 9/11 attacks fell on reinsurers (that further spread the risk assumed by primary insurers). Unable to accurately model or price terrorism exposures, reinsurers largely withdrew from the market for terrorism coverage. Without reinsurance, primary insurers were then
823:
carriers listed on the
Quarterly Listing of Alien Insurers published by the National Association of Insurance Commissioners. In addition, captive insurers and other self-insurance arrangements such as workers compensation self-insurance programs and State workers compensation reinsurance pools are
533:
Following enactment of the 2007 TRIA extension, the
Congressional Budget Office forecast a net federal budget cost of $ 0 for TRIA through 2017. "Under TRIA, the federal government would help insurers cover losses in the event of a terrorist attack under certain conditions, and would also impose
760:-Is licensed (or admitted) to provide insurance in any State, approved for the purpose of offering property and casualty insurance by a Federal agency in connection with maritime, energy, or aviation activity, or is a State residual market insurance entity or State workers' compensation fund
673:
TRIA established the
Federal Terrorism Insurance Program to administer a system of shared public/private compensation for insured losses resulting from acts of terrorism in order to protect consumers and create transitional period for private insurance markets to stabilize
813:: For the first two years, insurers must offer terrorism insurance in all commercial policies. Coverage must be available on terms identical to terms, amounts, and other coverage limitations applicable to losses incurred from events other than acts of terrorism.
320:
866:: Applicable to terrorism definition and state prior approval rating statutes. Also applies to existing terrorism exclusions, with provisions for reinstatement under certain conditions. Access to books/records by Secretary of Treasury guaranteed.
565:
The
Secretary of the Treasury oversees the Terrorism Insurance Program, with the assistance of the Federal Insurance Office. The Secretary has authority to establish regulations and procedures to implement TRIA.
941:"The Terrorism Risk Insurance Act of 2002 (TRIA), as amended by the Terrorism Risk Insurance Extension Act of 2005 (TRIEA) and the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA)"
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coverage to insurance companies following a declared terrorism event. TRIA is a short-term measure designed to help the insurance market recover from 9/11 and develop solutions to insuring terrorism.
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on
December 20, 2019. The Act includes the Terrorism Risk Insurance Program Reauthorization Act of 2019 which further extends the TRIPRA for an additional 7 years, expiring on December 31, 2027.
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extending the TRIA through
December 31, 2027. The Senate approved the extension on December 19, 2019 by a vote of 71-23. The following day, President Donald Trump signed the bill into law.
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848:: Federal cause of action in district court(s) designated by Judicial Panel on Multi-district Litigation with the substantive law of the state in which the act occurred applied.
807:: Commercial, plus war coverage for workers' compensation; excludes reinsurance. Secretary of the Treasury has discretion to add group life insurance and other personal lines.
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878:: Secretary of the Treasury, in consultation with NAIC, the insurance industry and other experts, is to issue a report not later than June 30, 2005, covering required items.
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The act was set to expire on
December 31, 2019, but was renewed under the 116th Congress as part of an omnibus spending bill, with President Donald Trump signing the
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1232:. Section 105 (1)(A) Certification of Acts of Terrorism; Consultation with Secretary of Homeland Security: From the U.S. Government Publishing Office
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451:) extending the TRIA through December 31, 2020. The Senate approved the extension the day after by a vote of 93-4. On January 12, 2015, President
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872:: $ 100 million against insurers for failing to pay assessments or surcharges, erroneous data, or violation of regulations.
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compelled to exclude terrorism. Most state insurance regulators approved terrorism exclusions for use by primary insurers.
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860:: No reports required, except for data not available to NAIC. Secretary of Treasury responsible for compiling of data.
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819:: Residual market entities and State funds are included in the insurers covered by the Act. The Act also applies to
854:: Punitive damages do not constitute "insured losses" and thus no federal participation. U.S. right of subrogation.
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1041:"Congressional Budget Office Cost Estimate: H.R. 2761: Terrorism Risk Insurance Program Reauthorization Act"
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An Act to ensure the continued financial capacity of insurers to provide coverage for risks from terrorism.
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Trigger or deductible for individual company is 17.5 percent of premiums in 2006 and 20% in 2007.
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As the
Secretary of Treasury determines appropriate, concerning the Terrorism Insurance Program.
830:: Insurers must disclose terrorism insurance premiums and the existence of the federal backstop.
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assessments on the insurance industry to recover all or a portion of the federal payments."
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Ministry of Defense and Support for Armed Forces of Islamic Republic of Iran v. Elahi
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Application to State Residual Market Entities and State Workers Compensation Funds
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The term "act of terrorism" is defined in the act as: any act certified by the
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the economy were vulnerable, creating broader threats to the national economy.
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On December 17, 2019 the House of Representatives voted 297-120 to approve the
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On January 7, 2015 the House of Representatives voted 416-5 to approve the
763:-And meets any other criteria that the Secretary may reasonably prescribe.
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1200:. Page 4 (3), Criteria Bullet Point 1: U.S. Department of the Treasury
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United States Senate Committee on Banking, Housing, and Urban Affairs
1165:. Section 102 (1) Act of Terrorism: U.S. Department of the Treasury
1156:"Terrorism Risk Insurance Act of 2002, As Amended In 2005 and 2007"
946:. Terrorism Risk Insurance Program Office, U.S. Treasury Department
232:
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TRIA created a U.S. government reinsurance facility to provide
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on November 26, 2002. The Act created a federal "backstop" for
967:"Terrorism insurance bill passes two days after Coburn's exit"
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1191:"The Reauthorization of the Terrorism Risk Insurance Program"
1077:"Expiring terrorism insurance program alarms Md. industries"
484:
Terrorism Risk Insurance Program Reauthorization Act of 2019
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Terrorism Risk Insurance Program Reauthorization Act of 2015
993:"U.S. Dept. of Treasury, Terrorism Risk Insurance Program"
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on November 14, 2002 (Agreed voice vote) and by the
752:: An eligible insurer is any entity or affiliate that:
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Consultation with State Insurance Regulators (NAIC):
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Satisfaction of Judgments from Assets of Terrorists
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1013:. Insurance Information Institute. Archived from
1006:Hartwig, Robert; Wilkinson, Claire (April 2011).
272:on July 25, 2002 (Passed unanimous consent)
555:Further Consolidated Appropriations Act, 2020
502:, as nearly 3,000 people lost their lives in
460:Further Consolidated Appropriations Act, 2020
8:
27:
775:Individual Company Trigger (or Deductible):
716:. Unsourced material may be challenged and
634:. Unsourced material may be challenged and
149:28 U.S.C.: Judiciary and Judicial Procedure
276:Reported by the joint conference committee
736:Learn how and when to remove this message
654:Learn how and when to remove this message
538:jeopardy." In addition, according to the
1298:Acts of the 114th United States Congress
1293:Acts of the 107th United States Congress
1163:U.S. Department of the Treasury Web site
500:Japanese surprise attack on Pearl Harbor
1063:"TRIA reauthorized with several tweaks"
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546:denied rumors that it would cancel the
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1008:"Terrorism Risk: A Reemergent Threat"
828:Cost Disclosure of Terrorism Coverage
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1113:"Mission - Federal Insurance Office"
714:adding citations to reliable sources
632:adding citations to reliable sources
262:on November 29, 2001 (227-193,
45:Terrorism Risk Insurance Act of 2002
852:Legal Modifications and Limitations
965:Dinan, Stephen (January 8, 2015).
915:"Terrorism Risk Insurance Program"
473:Tooltip Public Law (United States)
442:Tooltip Public Law (United States)
399:Tooltip Public Law (United States)
286:on November 19, 2002 (86-11,
25:
1136:. U.S. Department of the Treasury
360:Rubin v. Islamic Republic of Iran
919:U.S. Treasury Department Website
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604:
33:
793:Post Trigger Federal Assistance
455:signed the extension into law.
1288:Terrorism in the United States
586:Secretary of Homeland Security
1:
1226:"114th Congress Public Law 1"
1043:. Congressional Budget Office
412:signed into law by President
144:15 U.S.C.: Commerce and Trade
74:Terrorism Risk Protection Act
846:Civil Actions and Litigation
811:Mandatory Terrorism Coverage
386:Terrorism Risk Insurance Act
154:12 U.S.C.: Banks and Banking
84:107th United States Congress
28:Terrorism Risk Insurance Act
973:. The Washington Times, LLC
840:State Regulation Uniformity
309:United States Supreme Court
18:Terrorism Insurance Program
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1099:"H.R. 1865, Pub.L. 116-94"
921:. U.S. Treasury Department
584:, in concurrence with the
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420:claims related to acts of
789:: $ 100 billion per year.
582:Secretary of the Treasury
516:Shanksville, Pennsylvania
410:United States federal law
315:
212:
32:
1250:: CS1 maint: location (
1218:: CS1 maint: location (
1183:: CS1 maint: location (
870:Civil Monetary Penalties
799:Recoupment of Assistance
544:National Football League
340:Bank Markazi v. Peterson
243:House Financial Services
842:: No stated uniformity.
781:Industry-wide Retention
750:Eligibility of Insurers
678:Structure of assistance
576:Definition of terrorism
570:Definition of terrorism
239:Committee consideration
163:U.S.C. sections amended
280:agreed to by the House
278:on November 13, 2002;
266:, via Clerk.House.gov)
1283:Insurance legislation
1020:on September 24, 2015
858:Reports from Insurers
574:Further information:
482:) which included the
235:) on November 1, 2001
971:The Washington Times
710:improve this section
628:improve this section
496:September 11 attacks
300:on November 26, 2002
247:House Ways and Means
1101:. 20 December 2019.
512:Stonycreek Township
206:Legislative history
29:
1303:War risk insurance
1134:"TRIA Regulations"
1065:. 19 January 2015.
876:Report to Congress
288:Roll call vote 252
264:Roll call vote 464
42:Other short titles
864:State Pre-emption
787:Cap on Assistance
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290:, via Senate.gov)
270:Passed the Senate
115:Statutes at Large
93:November 26, 2002
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446:114–1 (text)
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1083:28 December
668:reinsurance
494:Before the
335: (2009)
1277:Categories
1236:21 January
1204:21 January
977:January 8,
901:References
726:April 2019
644:April 2019
561:Governance
548:Super Bowl
217:Introduced
103:Public law
66:TRIA, TRPA
50:Long title
824:included.
697:does not
615:does not
422:terrorism
418:insurance
190:12 U.S.C.
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