November 16, 2020
On November 10, the Department of Treasury issued a notice of proposed rule regarding the Terrorism Risk Insurance Program (TRIP). Specifically, Treasury is proposing, among other things, to:
- Clarify how Treasury will calculate “property and casualty insurance losses” for the purposes of considering certification of an act of terrorism, and “insured losses” when administering the financial sharing mechanisms under TRIP (e.g., TRIP’s trigger and cap); and
- Incorporate prior guidance provided by Treasury for stand-alone cyber insurance under TRIP.
To facilitate further study by the Federal Insurance Office (FIO) and potential future rulemakings on TRIP, Treasury seeks comments on the certification process under TRIP and the participation of captive insurers in TRIP, among other things. Comments are due January 11, 2021.
The notice of proposed rule can be found here.