On April 1, the Department of Treasury published proposed rules regarding the Terrorism Risk Insurance Program (TRIP) as required under reauthorization of the Terrorism Risk Insurance Act (TRIA). The proposed rules detail certain changes to TRIP, including a civil penalties provision and rules about final netting of payments.
There has not yet been detailed analysis of the proposed rules, nor their possible implications on public entity pools, whether direct or indirect. AGRiP has traditionally been in favor of TRIA, including renewals and extensions. Regardless of implementation details and remaining questions, TRIA has been considered a stabilizing force within the commercial insurance market, upon which many pools rely for excess coverage.
As we evaluate the proposed rules and impact on member pools, we would welcome input and assistance. If you have interest in participating in a conversation about proposed new rules, please contact Joel Kress.