U.S. treasury mandates terrorism coverage.(Capitol Beat)

Claims, August, 2004

The U.S. Treasury Department has extended the Terrorism Risk Insurance Act of 2002's "make available" requirement through 2005. The act, which was prompted by the terrorist attacks of Sept. 11, 2001, established a three-year program to promote the recovery of U.S. businesses following catastrophic terrorist attacks.

In exchange for the federal government's agreeing to shoulder a share of the financial risk of future attacks, insurers were required to offer terrorism coverage on commercial policies written during the first two years of the program, as well as to retain an escalating financial burden of insured losses from a future attack.

Currently, Congress is considering whether to extend TRIA, which expires Dec. 31, 2005. The insurance industry has...

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