Terrorism Risk Insurance Implementation Gets Fine-Tuned

WASHINGTON, DC-The US Department of the Treasury has officially announced a final regulation under the Terrorism Risk Insurance Act of 2002, which went into effect immediately following President Bush’s signing off on the legislation last November. This particular final regulation concerns definitions made under an interim final rule. The essence of the interim final rule has remained intact, but for a few adjustments resulting from suggestions taken during the Treasury’s request for comment period. Those adjustments include the clarification of definitions for the phrases “affiliate,” direct earned premium,” and “commercial property and casualty insurance.”

“The comments Treasury received on the interim final rule provided many helpful suggestions as Treasury moved forward with finalizing this rulemaking,” Treasury assistant secretary Wayne Abernathy notes. “We anticipate continuing to benefit from the thoughtful input of insurance market participants and other interested parties, as well as from our continuing consultations with the National Association of Insurance Commissioners, as we move forward with implementing the Terrorism Risk Insurance Act.”