Terrorism Risk Insurance Act (TRIA) 1
Terrorism Risk Insurance Act (TRIA) 1 :
“TRIA and TRIEA established the federal government as the backstop reinsurer of certain types of terrorism risk, for most commercial lines carriers, and for certain types of losses: principally, injury to or death of employees, damage to commercial properties and operations due to acts of terrorism committed by foreign nationals. The federal insurance “kicks in” only above specific “retentions” (or deductibles), and even then pays most, but not all, of the claims above that level, up to a designated ceiling. The federal government does not charge for providing this reinsurance beforehand, as a typical private insurer would do, but TRIA and TRIEA do require insurers to repay at least some of the government’s claims payouts over an extended period, subject to the discretion of the Treasury Secretary, whose department administers the program”. (FSR, Nation Unprepared, 2007, 60)
