On December 22, 2005, the President signed compromise legislation extending the Terrorism Risk Insurance Act of 2002 (TRIA) for two years — through 2007. ISO's terrorism programs comply with the provisions of the extension without a need for immediate revisions.
As enacted, the Terrorism Risk Insurance Extension Act of 2005 closely follows the provisions of the Senate TRIA extension bill passed on November 18 — with the significant exception that the threshold for declaring a certified act of terrorism remains at $5 million. Because of that change, ISO's portfolio of terrorism exclusion endorsements and the related rules still allow insurers to implement the provisions of the bill. Insurers can use the full array of tools that ISO developed to manage the terrorism exposure for lines of business subject to TRIA — and for lines not subject to TRIA.
Because ISO designed its conditional endorsements to meet contingency situations — and because the definition of a certified act has not changed — new forms filings were not immediately necessary. However, we will change certain forms to reflect changes in TRIA. Refer to circular LI-CF-2006-032 for details.
...on ISO's response to the Terrorism Risk Insurance Act of 2002, watch this website. We will post frequent updates on our filings and regulatory action on them.