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Terrorism Risk Insurance Act - An Update

As carriers attempt to comply with this new federal law, PIA members would naturally like to have one way to comply for all their...
January 10, 2003

Visit the TRIA Web Page of PIA's Web Site for Updates on Implementation

By Pat Borowski
Senior Vice President, Government Affairs
PIA National

As carriers attempt to comply with this new federal law, PIA members would naturally like to have one way to comply for all their carriers, across all lines, classes and territories, for their agency client operations.

It's not possible. Here's why:

Everybody in the insurance sector is still in the process of working out the details. Right now, the U.S. Treasury Department is formulating the detailed regulations to implement the TRIA. These have not been finalized.

In addition, the law itself and the expected federal regulations provide carriers some latitude to make individual decisions.

PIA is now working with all of the parties that will have a say in this with the goal of streamlining the process. We're working with Treasury officials, the NAIC and the various state departments of insurance to make things as simple as possible. But note that because of what's spelled out in the law -- along with the fact that Treasury and the various individual state departments of insurance will have a say in the matter -- the desire that all carriers in all circumstances operate their TRIA notices, charges and endorsement in the same way is not an achievable goal.

PIA understands that despite this, member agencies face immediate street-level compliance challenges when faced with questions from their clients. To respond better to your questions and information needs, as well as better manage accurate implementation information that changes daily, PIA National created a TRIA Web page on PIANET.

Through this central Web area, PIA is better able to update materials as needed, as well as provide links to other insurance sources such as ISO, NAIC and others necessary for PIA members' information needs. These other insurance organizations are working with PIA to keep their information constantly updated, as well as include helpful responses to inquiries PIA receives from its members.

When you visit PIANET for TRIA information, be sure to look at three things:

  • The memo dated December 2, 2002 outlining the process that PIA agencies may wish to use in order to secure clearer direction from and understanding of each of your carrier's notice, pricing and endorsement activities in response to TRIA.
  • The slides comprising the PIA-ISO Webcast of January 14, 2003. Slides 26 through 29 are particularly helpful as a starting point for understanding each of your carriers' approaches and detailing your own agency matrix.  Please remember that ISO's outline responds to ISO products and the thinking behind them. Each carrier may make changes to any of these combinations/forms.  Further, state law and/or department of insurance rulings can also create variations from these examples.  Remember too, ISO relates to standard admitted P&C carriers, and does not apply to non-admitted, wholesale or alternative coverage offerings.
  • Please follow the state-specific updates provided by your PIA affiliate concerning what your state department of insurance is requiring. Together with PIA affiliates, we hope to include these state-by-state rules since many PIA member agencies operate across several jurisdictions. Whether operating for the same insurer in two or more states or insuring/writing a commercial account domiciled in your state, but that has multiple insured locations in several states on that policy, please be sure you are advised by your insurer what if any state differences will need to be accommodated for complete TRIA compliance.

We welcome your questions and invite your suggestions of how we can make this real-time Web access for TRIA work for you! Send your questions to patbo@pianet.org

This article originally appeared in the January 2003 PIA Connection.

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