act of terrorism definition insurance
The NAIC is committed to working with Congress, the Administration, state officials, and the industry to develop a long-term plan to make terrorism insurance available and affordable. President Obama signed the Terrorism Risk Insurance Program Reauthorization Act of 2015 (H.R.26) on January 12, 2015. The Terrorism Risk Insurance (Extension) Acts (TRIEA): Congress passed an extension of the 2002 Act at the end of December 2005. The legislation extending the Act to December 2007 greatly increased the portion of the loss insurers would pay in the event of a terrorist attack. The Terrorism Risk Insurance Act (TRIA) is a U.S. federal law enacted in 2002. The TRIA was enacted in the wake of the terrorist attacks of September 11, 2001. It was created to enable commercial insurers to provide reasonable terrorism coverage to policyholders who are subjected to acts of terrorism. All Risk property and casualty policies cover certifiedand non-certified acts of terrorism prescribed by TRIP. Per-occurrence limits, deductibles, locations, a one-year policy term and cancellation provisions mirror those of the property or casualty policy in which the coverage is embedded. A clause in an insurance policy that specifically excludes coverage for acts of war such as invasion, insurrection, revolution, military coup and terrorism. The Act created a federal backstop for insurance claims related to acts of terrorism. The Act provides for a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism.. Extending the Terrorism Risk Insurance Act (TRIA): There is general agreement that TRIA has helped insurance companies provide terrorism coverage because the federal government's involvement offers a measure of certainty as to the maximum size of losses insurers would have to pay and allows them to plan for the future. Policies. All Risk property and casualty policies cover certifiedand non-certified acts of terrorism prescribed by TRIP. Per-occurrence limits, deductibles, locations, a one-year policy term and cancellation provisions mirror those of the property or casualty policy in which the coverage is embedded. DEFINITION of 'War Exclusion Clause'. A clause in an insurance policy that specifically excludes coverage for acts of war such as invasion, insurrection, revolution, military coup and terrorism. The Act created a federal backstop for insurance claims related to acts of terrorism.
Congress passed an extension of the 2002 Act at the end of December 2005. The legislation extending the Act to December 2007 greatly increased the portion of the loss insurers would pay in the event of a terrorist attack.