Key Parts of Terrorism Risk Insurance Act of 2002
By Scott Simmonds, CPCU, ARM, CMC

Here are some key points to TRIA:

--Federal program with mandatory participation (by insurance companies) renewed in 2006.

--Covers only foreign-led attacks on U.S. property that cause at least $5 million in damages.

--Does not cover domestic terrorism - Oklahoma City, for example.

--Feds pay for 90% of any losses above a company's deductible. (85% in 2007)

--Insurer of record responsible for 10% of any losses after a 17.5% deductible. (15% of losses over 20% deductible in 2007)

--Annual losses covered by the program capped at $100 billion.