Are You Overlooking Your Risk? TRIA Reauthorized Jan. 12

A Renewed Focus on Terrorism Risk Insurance; TRIA Reauthorized Jan. 12

From growing worldwide tensions, to major events in our own backyards, terrorism insurance is rightfully on the minds of business owners and government officials. Please review the following information regarding the recent news on the reauthorization of The Terrorism Risk Insurance Act (TRIA), the adjustments that have been made, and contact Oswald to discuss the potential impact specific to you and your business.

WHAT IS TRIA?
The Terrorism Risk Insurance Act (TRIA) is a United States federal law signed into law by President George W. Bush on November 26, 2002, in wake of the Sept. 11, 2001 terrorist attacks. The Act created a federal “backstop” for insurance claims related to acts of terrorism. The Act, originally set to expire Dec. 31, 2005, was extended an additional two years, and then reauthorized in 2007 through Dec. 31, 2014. TRIA has served as a public-private partnership that is critical to economic security and protecting US businesses and taxpayers.

TRIA STATUS & PROVISIONS
On Jan. 12, 2015, President Obama signed into law H.R. 26 (Neugebauer, R-TX), the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA of 2015).

• • TRIA is now extended for six years until Dec. 31, 2020

• • An act of terrorism must be certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security, and the U.S. Attorney General
    – The term “act of terrorism” is defined in the act as: any act certified by the Secretary of Treasury, in concurrence with the Secretary of State and Attorney General, to be an act that is dangerous to human life, property, or infrastructure and to have resulted in damage within the U.S. (or outside the U.S. in the case of a U.S.-flagged vessel, aircraft or premises of a U.S. mission). It must be committed as part of an effort to coerce U.S. civilians or to influence either policy or conduct of the U.S. Government through coercion. The definition includes both foreign and domestic terrorists. The Secretary may not delegate this certification authority and his or her decision to either certify or not certify an act of terrorism is not subject to judicial review.

• • Beginning on January 1, 2016
    – The current 85% Federal share of compensation under the Terrorism Insurance Program (Program) decreases by one percentage point per calendar year until it is equal to 80%
    – The current Program trigger for aggregate industry insured losses to exceed $100 million increases by $20 million per calendar year until it is equal to $200 million

WHAT DOES THIS MEAN TO YOU
TRIA has been reauthorized, but with the principal changes, it is worth reviewing your current policies to understand your levels of protection, and learn more about the details TRIA.

Contact your Oswald representative at anytime to continue the conversation.