FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department today announced additional interim guidance for the insurance industry in meeting certain requirements under the Terrorism Risk Insurance Act of 2002, which was signed into law by President Bush on November 26, 2002. 

Today’s interim guidance is designed to assist insurers in determining how they may comply with certain immediately applicable provisions of the Terrorism Risk Insurance Act prior to the issuance of final regulations by the Treasury. 

 “This is the third issuance of interim guidance to assist insurers in working with a number of time sensitive issues,” said Treasury Assistant Secretary for Financial Institutions Wayne Abernathy, who oversees the Terrorism Risk Insurance Program. “At the same time, we have been working overtime in developing formal regulations to address implementation issues in the Terrorism Risk Insurance Act. 

“Our goal is to implement the Program in a manner that is fair and easily understood, maximizes reliance upon the existing state regulatory structure, and allows insurers to participate in the Program as part of their normal course of business,” he said. “We hope to meet that goal while emphasizing the expectation and need for insurers to develop aggressively their own resources and mechanisms for terrorism risk coverage when the Program expires.  None of our progress to date could have been possible without the close cooperation of the National Association of Insurance Commissioners.”

Today’s interim guidance, along with interim guidance issued by the Treasury on December 3, 2002 and December 18, 2002, can be used by insurers in complying with the statutory requirements prior to the issuance of regulations. The interim guidance remains in effect until superceded by regulations or subsequent notice.  Both interim guidance notices and other information related to the Terrorism Risk Insurance Program can be found at www.treasury.gov/trip.   Prior to issuance of final regulations, insurers and other interested parties will have an opportunity to submit comments on regulations.

Today’s notice provides interim guidance concerning specific provisions associated with the disclosure provisions of the Act, non-U.S insurer participation in the Program, and the scope of insured loss under the Program. 

Related Documents:

• Interim Guidance