TRIA Legislative Updates
February 11, 2015
The U.S. Department of Treasury issued interim guidance dated February 4, 2015 concerning the Terrorism Risk Insurance Program Reauthorization Act of 2015 (Act). That interim guidance, in part:
- States that the Treasury “expects that an insurer will make a new offer of coverage…with respect to any in-force policy that does not provide coverage for insured losses,” but an insurer is not expected to make such offer if "the policy incorporates a conditional exclusion…and, because the Program is in effect, the insurer forbears effective January 1, 2015 (or as of the effective date of the policy, if later) on the exercise of the conditional exclusion..."
- For policies that contain a conditional exclusion, the guidance provides that “[n]ot later than April 13, 2015, an insurer should provide to the policyholder written notice of the insurer’s forbearance….”
The related Treasury interim guidance does not set forth specific language for use as part of any such policyholder notice. To learn more about the Treasury interim guidance, and in particular, the requirement for policyholder notification, view ISO Circular LI-CL-2015-038 (ISOnet login required).
January 29, 2015
According to a report on the NAIC Newswire, the Treasury Department is preparing to release guidance on the government's terrorism risk insurance program after President Barack Obama earlier this month signed into law legislation passed by Congress. “With the enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2015, Treasury will provide guidance in the near future to address, on an interim basis, certain aspects relating to the implementation of the Program," said Michael McRaith, director of Treasury's Federal Insurance office.
January 13, 2015
The Terrorism Risk Insurance Program Reauthorization Act of 2015 (former H.R. 26) was signed into law by President Obama on January 12, 2015.
The Act reauthorizes TRIA through the end of 2020; makes various amendments to the certification decision process, financial participation percentages, and dollar amounts; requires various studies; and establishes certain data collection requirements. For more information, please read circular LI-AL-2015-003 (ISOnet login required).
December 30, 2014
ISO has developed sample policyholder notices that insurers can use, in certain circumstances, when issuing policies in 2015. The notices include those that address conditional terrorism endorsements, as well as post-TRIA exclusion endorsements, in the wake of the termination of TRIA and amid speculation of new TRIA reauthorization legislation in 2015.
December 22, 2014
On December 10, 2014, the U.S. House of Representatives passed an amended version of U.S. Senate bill S. 2244, which proposes to reauthorize TRIA for six years with various changes to the financial backstop provisions.
ISO has reviewed the amended version of S. 2244 passed by the House. Based on our preliminary review, we’ve concluded that ISO terrorism forms would be affected by certain provisions. If TRIA is reauthorized through the amended version of S. 2244 — although that possibility doesn’t appear likely — we’d respond with filings as expeditiously as possible.
For more information, please read circular LI-AL-2014-018 (ISOnet® login required).