On December 20, 2019 President Donald J. Trump signed into law the Terrorism Risk Insurance Program Reauthorization Act of 2019. The NAIC Terrorism Insurance Implementation Working Group recently issued bulletins related to this matter. his Reauthorization Act of 2019 changes the Terrorism risk Insurance Program as follows:
- Extends the Federal Terrorism Risk Insurance Program through December 31, 2027.
- Adjusts the mandatory recoupment timing.
- Fixes the United States Government reimbursement level of covered terrorism losses above the deductible at 80%.
Will Your Rules, Forms and Policyholder Notices be Compliant?
Affected Commercial lines of business may require updates that must be in place prior to the end of 2020 including the following:
- TRIA endorsements and disclosure notices must be revised to properly reflect the federal share percentage of 80% and may need to be filed in some states.
- Various rates and rules need to be reviewed to ensure they are compatible with the revised program terms. If revisions are needed, they may need to be filed.
Whether you need help drafting updated endorsements and notices, revising your rules or submitting required filings, the experts at Perr&Knight can help you prepare to be compliant with required changes. Contact Us Today.