(Archived Content)
FROM THE OFFICE OF PUBLIC AFFAIRS
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JS-1813
The Treasury Department today announced a final rule implementing the litigation management provisions of the Terrorism Risk Insurance Act of 2002 (TRIA) and President Bush's directive that Treasury provide procedures for advance Treasury review and approval of settlements related to covered losses under the Terrorism Risk Insurance Program. This rule finalizes the proposed rule published May 6, 2004, and is the latest in a series of Treasury regulations implementing TRIA.
Today's final rule is a supplement to procedures for insurers to follow in filing claims and receiving payment of the federal share of compensation for insured losses under the Terrorism Risk Insurance Program. The rule is designed to protect taxpayer resources by ensuring that claims made under the program are bona fide, as well as to facilitate expedited compensation for legitimate losses covered under the Act. In particular, the final rule ensures that taxpayer dollars will not be used to compensate for punitive damages as set out in TRIA; protects the subrogation rights of the United States with regard to any payments made under the Program; balances Treasury's operational needs with insurer reporting requirements; and clarifies related aspects of the Program.
The Terrorism Risk Insurance Program is a temporary federal reinsurance program designed to encourage the development of private sector resources and arrangements for managing risk of loss due to acts of international terrorism. The authority for the Program expires on December 31, 2005.
The final regulation and other information related to the Terrorism Risk Insurance Program can be found at http://www.treas.gov/trip.
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