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3 goals of TRIA:

1. Create a temporary federal program of shared public &
private compensation for terrorism losses, while the private market stabilizes after 9/11
2. Protect consumers, by ensuring the availability and
affordability of terrorism insurance.
3. Preserve state regulation of insurance


Describe the structure of the TRIA program:

-Only applies to commercial lines
-A single terrorist act must be certified by the Secretary of Treasury, Secretary of State and Attorney General. Losses must exceed $5M to be eligible for TRIA coverage.
-Aggregate industry certified losses must exceed $100M for government coverage to begin
-Each insurer has a deductible equal to 20% of its annual premium
-After the above thresholds are passed, the government will cover 85% of insured losses. -If aggregate industry losses do not exceed $27.5B, the Secretary of the Treasury will recoup 133% of coverage via surcharges.
-If aggregate industry losses do exceed $27.5B, it has the discretion to apply surcharges to recoup the money paid.
-The government will only cover up to $100B of losses. After that point, there is no federal coverage, nor is there a requirement that the private market provide coverage.