TRIA has been renewed by Congress. The Legislation now goes to the President who is expected to sign it very soon. The key provisions are:
- 6 year reauthorization;
- $200 million trigger – no change in 2015, but phased-in the following five years in $20 million increments;
- 80-20 public – private co-share –no change in 2015, then phases in over one-percentage per year (Senate text);
- Program Cap – $100 Billion (unchanged from current program);
- Deductible – 20 percent (unchanged from current program);
- Certification – Treasury Secretary shall study and report to Congress on certification process and within 9 months of that report, issue final rules on certification process, including on timeline for certification;
- Recoupment – The insurance marketplace aggregate retention amount is the LESSER of (1) $29.5 B, which climbs in annual increments to $37.5 B; or (2) an aggregate amount for all insurers of covered losses during calendar year. Following year five of the program, when the retention amount equals $37.5B, the aggregate retention shall be equal to a 3 year average of the sum of insurer deductibles for all insurers participating in the program. This adjustment does not include the House text 107(b). The percentage recoupment is 140 percent.
Congresses intent is the TRIA reauthorization will apply retroactively and continuously without any lapse so that there will be no program gap. The Treasury Department will issue guidance and regulations consistent with that intent implementing the reauthorized TRIA program. WQIS will continue to cover losses caused by terrorism events consistent with the TRIA extension and our policy terms and conditions.
Please contact WQIS if you have any questions or would like further information regarding the TRIA renewal.