(Archived Content)
FROM THE OFFICE OF PUBLIC AFFAIRS
To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®.
JS-192
These regulations address the disclosure requirements, the “make available” requirements, and the participation of state residual market insurance entities and state workers’ compensation funds under the Terrorism Risk Insurance Act. Treasury has submitted these regulations for publication in the Federal Register. Insurers and other interested parties will have the opportunity to submit comments during the comment period, which will last for 30 days from the date of publication.
“Treasury continues to move forward with regulations implementing the aspects of the Program addressed previously through interim guidance and is developing new regulations on other aspects of the Terrorism Risk Insurance Act,” said Treasury Assistant Secretary for Financial Institutions Wayne A. Abernathy, who oversees the Terrorism Risk Insurance Program. “We also are in the process of evaluating the comments we received on the first set of regulations issued to implement the Act, and that regulation should be finalized in the coming weeks.”
The interim final rule on the disclosure and “make available” requirements largely incorporates previously issued interim guidance that was designed to assist insurers in determining how they may comply with certain immediately applicable provisions of the Terrorism Risk Insurance Act prior to the issuance of regulations by the Treasury. The interim final rule clarifies statutory conditions for federal payment that require insurers to make certain disclosures to policyholders within specified time periods. Treasury continues to stress that insurers should follow normal business practices in complying with the disclosure requirements contained in the interim final rule.
The interim final rule also incorporates and clarifies statutory requirements that insurers must “make available” coverage for insured losses resulting from an act of terrorism as defined by the Act. Consistent with previously issued interim guidance, Treasury has maintained a reliance on state laws as it relates to requirements for insurance coverage in this interim final rule.
Treasury also is issuing a notice of proposed rulemaking on the participation of state residual market insurance entities and state workers’ compensation funds under the Program. The Act defines such entities as insurers and specifies methods for such entities’ participation depending on whether or not they share profits and losses with their participating insurers. If adopted, the proposed rulemaking would implement these statutory requirements in a manner that would allocate risk to the ultimate risk bearer. The interim final regulation and notice of proposed rulemaking, and other information related to the Terrorism Risk Insurance Program can be found at http://www.treasury.gov/about/organizational-structure/offices/Pages/Terrorism-Risk-Insurance-Program.aspx.
Related Documents: