Terrorism insurance extended.NAA/NMHC secured a tremendous victory on Dec. 22 when President Bush signed into law compromise legislation (S 467) that renews the federal terrorism risk insurance (TRIA TRIA Terrorism Risk Insurance Act of 2002 TRIA Term Requirement in Average ) program for two years. The final bill responds to White House demands that the program be scaled back to reduce taxpayers' potential liability and encourage private market development. It increases the portion of losses insurers would have to pay and raises the amount of overall loss that triggers a federal payment from $5 million to $50 million in 2006 and then to $100 million in 2007. Agreement was reached only after several House provisions--including different triggers for different insurance types; adding group life insurance to the lines covered; and extending coverage for nuclear, biological, chemical and radioactive ra·di·o·ac·tive adj. Of or exhibiting radioactivity. radioactive characterized by radioactivity. radioactive decay attacks--were dropped. On Dec. 30, the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. Department released interim guidance implementing the new law. It responds to several operational issues that arise under the TRIA extension, including which types of commercial property and casualty insurance are covered by the act and the act's "make available" provision. The guidance gave insurers until Jan. 31 to offer terrorism insurance Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities. It is considered to be a difficult product for insurance companies, as the odds of terrorist attacks are very to policyholders who had accepted terrorism coverage for 2006, but whose coverage had lapsed LEGACY, LAPSED. A legacy is said to be lapsed or extinguished, when the legatee dies before the testator, or before the condition upon which the legacy is given has been performed, or before the time at which it is directed to vest in interest has arrived. Bac. Ab. Legacy, E; Com. Dig. Dec. 31, 2005, in anticipation of TRIA expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. . Firms should note, however, that insurers are not required to make new offers of terrorism insurance to policyholders who previously declined coverage that would have been in effect in 2006. Treasury will issue final regulations to administer the extension program in the future. The interim guidance can be found at www.naahq.org/govern_affairs/. |
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