js-1744: Treasury Department Announces a Final Regulation Implementing Claims <script type="text/javascript"> var wmNotice = "UNT Web Archive - External links, forms, and search boxes may not function within this collection. Url: http://www.treasury.gov/press/releases/js1744.htm time: 23:29:09 May 14, 2009"; var wmHideNotice = "hide"; var contextRoot = "https://webarchive.library.unt.edu/eot2008/"; </script> <script type="text/javascript" src="https://webarchive.library.unt.edu/eot2008/js/disclaim.js"></script> <br> Procedures Under the Terrorism Risk Insurance Act



	FROM THE OFFICE OF PUBLIC AFFAIRS June 24, 2004 js-1744 Treasury Department Announces a Final Regulation Implementing Claims Procedures Under the Terrorism Risk Insurance Act The Treasury Department today announced a final claims rule pursuant to the Terrorism Risk Insurance Act (TRIA) of 2002. This rule finalizes the proposed rule published December 1, 2003, and is one in a series of Treasury regulations implementing TRIA. Today's final rule contains procedures for insurers to follow in filing claims and receiving payment of the federal share of compensation for insured losses under the Terrorism Risk Insurance Program. In this regard the final rule provides for advance payments under certain conditions. The final rule also clarifies elements of insured losses that are to be recognized under the Program and establishes fundamental documentation and recordkeeping necessary for insurers to receive the federal share of compensation for terrorism losses. "This final regulation reflects our careful consideration of the thoughtful comments we received on the proposed rule," said Treasury Assistant Secretary for Financial Institutions Wayne Abernathy, who oversees the Terrorism Risk Insurance Program. "We hope that we will never be called upon to trigger coverage under TRIA, but the program stands ready today, as it has from its earliest days, to meet its responsibilities. While emergency measures were previously available to us, these claims procedures will enable Treasury to respond quickly and properly to insurer claims for payment." In commenting on the proposed rule, several insurers noted potentially significant cash flow concerns if insurers were in all cases required to first make claim payments to insureds prior to seeking reimbursement of the 90% Federal share of insured losses. "I am pleased to announce," said Jeffrey S. Bragg, Executive Director of the Terrorism Risk Insurance Program, "that Treasury has been able to devise a means by which advance federal payments may be made under certain circumstances, thus enabling a prompt response with appropriate financial controls in place." Insurers who want to make use of advance payments will establish a segregated account into which Treasury payments will be made based on insurers' reporting of losses that are to be paid within five days of receipt of the federal share. Companies will make their payments from the account and remit any interest earned to the Treasury Department. The Terrorism Risk Insurance Program is a temporary federal reinsurance program designed to encourage the development of private sector resources and arrangements for managing risk of loss due to acts of international terrorism. The authority for the Program expires on December 31, 2005. The final regulation and other information related to the Terrorism Risk Insurance Program can be found at http://www.treas.gov/trip. -30-