US Terrorism Insurance Program Renewed for Two More Years

Originally published in Financial Services Advisory Update, Volume 3, No. 1 February 2006

On December 22, 2005, President Bush signed into law the Terrorism Risk Insurance Extension Act of 2005, extending through December 31, 2007, the US Terrorism Risk Insurance Program under which the United States assists in compensating for insured commercial property and casualty losses resulting from an act of terrorism certified as such by the Secretary of the Treasury.

As they have since the Terrorism Risk Insurance Act (TRIA) was originally enacted in 2002, insurers will be required to continue to "make available" coverage for insured losses as required by TRIA and Treasury regulations. Thus, insurers issuing or renewing commercial property and casualty insurance policies in 2006 and 2007 must continue to offer coverage for insured losses resulting from an act of terrorism in order for their insured loss claims to be eligible for the federal share of compensation.