Treasury Department Announces Two Final Regulations Implementing the Terrorism Risk Insurance Act
October 16, 2003
The Treasury Department has announced two final regulations under the Terrorism Risk Insurance Act of 2002, which was signed into law by President Bush on November 26, 2002.
One final regulation addresses the disclosure and ?make available? requirements under the Terrorism Risk Insurance Act, and the other final regulation addresses the participation of state residual market insurance entities and state workers' compensation funds under the Terrorism Risk Insurance Program.
?Treasury carefully considered the comments we received in finalizing these rulemakings,? said Treasury Assistant Secretary for Financial Institutions Wayne Abernathy, who oversees the Terrorism Risk Insurance Program. ?In the coming weeks we will be moving forward with the remainder of the process for implementing the Terrorism Risk Insurance Act, including regulations setting forth the procedures for submitting claims under the Program. We anticipate continuing to benefit from the thoughtful input of insurance market participants and other interested parties, as well as from our very productive consultations with the National Association of Insurance Commissioners, throughout the remaining life of this temporary program.?
In addition to regulations implementing the Terrorism Risk Insurance Act, Treasury's Office of Economic Policy is well along in developing nationally representative survey instruments for insurers, reinsurers, and policyholders on conditions in the terrorism risk insurance market. The survey will form a key component of Treasury's evaluation of the effectiveness of the Program, and a late Fall release is planned. Assistant Secretary Abernathy added that ?It is essential that insurers and other entities take the time to complete this survey. The Terrorism Risk Insurance Act created a temporary program that expires in a little over two years, and we are anxious to learn about developments in the terrorism risk insurance market and the methods that are being employed to manage potential exposures.?
The Terrorism Risk Insurance Program is a temporary federal reinsurance program designed to encourage the development of private sector resources and arrangements for diffusing risk of loss to acts of international terrorism. The authority for the program expires on December 31, 2005.
Source: Treasury Department