JERSEY CITY, N.J., December 19, 2007 — ISO today began submitting forms and rules filings to state insurance departments that revise its terrorism programs in response to the Terrorism Risk Insurance Program Reauthorization Act of 2007, which Congress passed on December 18, 2007, and sent to the President for signature. The President is expected to sign the bill.
This legislation modifies the Terrorism Risk Insurance Act (TRIA), which provides financial backing by the federal government for insurance losses certified by the Secretary of the Treasury as “acts of terrorism.” The new legislation extends the program for an additional seven years, revises the criteria for certification of an act of terrorism by eliminating the distinction between foreign and domestic acts of terrorism, includes an additional disclosure requirement, and reinforces the $100 billion cap on aggregate insured losses, among other changes.
In response to the revisions contained in the Act, ISO has begun to file a full complement of products that insurer customers will need to comply with the provisions of the bill. This includes revised policy endorsements for use by insurers in meeting the new law’s requirements to make available coverage for certified acts of terrorism not previously covered. The filings also include revisions to the required disclosures, an endorsement setting forth the $100B cap, and revised exclusion endorsements.
"With TRIA’s expiration date of December 31, we have been closely monitoring congressional action. We recognize the need for prompt access to compliant products, and that is why we’ve geared up to file as quickly as we have,” said ISO Senior Vice President Kevin Thompson.
“ISO is committed to providing insurers with the critical tools necessary to respond to this development and enable ongoing compliance with this important federal program,” added Thompson.
ISO is a leading provider of products and services that help measure, manage, and reduce risk. ISO provides data, analytics, and decision-support solutions to professionals in many fields, including insurance, finance, real estate, health services, government, and human resources. Clients use ISO’s databases and services to classify and evaluate a variety of risks and detect potential fraud. In the United States and around the world, ISO’s services help customers protect people, property, and financial assets.