The U.S. Treasury Department has decided to extend the “make available” provisions of the Terrorism Risk Insurance Act through 2005.[@@]
TRIA requires the federal government to cover up to $90 billion in terrorism-related losses if terrorism-related losses in a given year exceed $10 billion. The make available sections require insurers to include terrorism coverage provisions in their commercial property-casualty policies that are similar to the coverage provisions for other risks.
TRIA also requires the Treasury Department to conduct a study of the effectiveness of the act by June 2005.
The program is set to expire at the end of 2005, and TRIA gives Treasury Secretary John Snow the authority to kill the make available provisions early if he finds that they are ineffective or unnecessary.
Snow says he believes that the TRIA program has helped the country recover from the recession and the effects of the Sept. 11, 2001, terrorist attacks. Almost 200 members of the public have commented on TRIA, and most of the comments support the argument that the make available provisions have helped increase the availability, flexibility and affordability of terrorism coverage, Snow says.