- Federal Insurance Office Reports On Certification Process Under the Terrorism Risk Insurance Act
- October 22, 2015
- Law Firm: Colodny Fass P.A. - Sunrise Office
- The U.S. Department of the Treasury's Federal Insurance Office released a report on October 9, 2015 entitled "The Process for Certifying an 'Act of Terrorism' Under the Terrorism Risk Insurance Act of 2002" ("Report").
Mandated by the Terrorism Risk Insurance Program Reauthorization Act of 2015 enacted January 12, 2015, the Report gives an overview of the Terrorism Risk Insurance Program, which provides a federal backstop for certain U.S. property and casualty insurance losses resulting from a certified act of terrorism. A certification determination is made by the Secretary of the Treasury in consultation with the United States Attorney General and Secretary of Homeland Security.
In view of the potentially unlimited set of facts that may give rise to a certification, the Report finds that the certification process must allow for the flexibility needed to obtain and consider all relevant information when making a determination for certification. It concludes that public communication concerning the status of certification can and should be improved through amendments to current regulations.
The Federal Insurance Office, which was established within the Treasury by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, monitors all aspects of the insurance sector and assists the Treasury Secretary in administering the Terrorism Risk Insurance Program.