An Update on Terrorism Risk Insurance

By Laura M. Kotelman
February 03, 2007
On November 26, 2002, the President signed into law the Terrorism Risk Insurance Act of 2002 (TRIA). The Act became effective immediately. It established a temporary Terrorism Risk Insurance Program (“Program”) of shared public and private compensation for insured commercial property and casualty losses resulting from an act of terrorism. The Program, administered by the Secretary to the Treasury, was due to terminate on  December 31, 2005. However, in December 2005, Congress passed the Terrorism Risk Insurance Extension Act of 2005 (TRIEA), extending TRIA for an additional two years. It also made other signifi cant changes to TRIA, discussed below....