- Web-Based Facility
- Registration Process for Electronic Submissions
- Secure Submission
- Policyholder Surcharges
- Recordkeeping Requirements
- Prior Approval for Certain Claims
- Payment to Insurers
- Payment to Treasury
To obtain payment of the Federal share of compensation, insurers will be able to use a web-based facility (Facility) to electronically certify and submit the information required by TRIP. Insurers may also use the Facility to obtain information how to certify and submit information in hard copy. Telephone and e-mail contact information will be provided so that insurers will have access to assistance in registering, submitting claims for the Federal share of compensation, and tracking submissions.
To familiarize insurers with submission requirements, a demonstration website is available for review which contains functioning electronic forms, sample data, and links. The demonstration website does not contain editing, save or submit capabilities.
In order to use the Facility to electronically sign, certify, and submit required TRIP claims information, an insurer must first register with the Facility. The registration process provides necessary security controls, both with respect to authenticating and safeguarding the information being submitted and for the general security of the Facility.
The registration process requires submission of the following information: insurer and insurer group (affiliate); point of contact, and the identity of individuals "authorized" by an organization to enter TRIP claims information and/or electronically certify and submit information.
Note: only corporate officers designated and verified through the registration process will be able to electronically certify and submit TRIP claims information through the Facility. Generally, this registration process only needs to be done once per insurer or insurer group. In the case of a group of affiliated insurers, TRIP requires that a single insurance entity in the group act as the point of contact for all aspects of submitting claims information, loss and compliance certifications, and for payments of the Federal share of compensation.
After the registration information has been submitted, it will be reviewed and the designated "authorized" personnel will be verified. When validated, the designated personnel will be provided with account, password, and related information needed to access the Facility and securely submit information.
Once the registration process is fully complete, and in compliance with the Government Paperwork Elimination Act (GPEA) and the Electronic Signatures in Global and National Commerce Act (the "e-Sign" Act), an insurer will be able to electronically sign, certify, and submit TRIP claims information for the losses covered under TRIA. Upon receipt, the information will be reviewed to ensure it meets all Program requirements. The claim for the Federal share of compensation will then be processed for payment.
There are seven (7) forms that may be required in the event of a certified act of terrorism. Electronic versions of these forms will be available through the Facility. These electronic forms are designed with dropdown menus and help screens. Insurers may also submit hard copies of the forms (links to downloadable forms are provided below). If an insurer is a member of an affiliated group, the group must select one insurer to submit forms on behalf of the group.
- Notice of Deductible Erosion (Form TRIP 01) – Pursuant to 31 CFR 50.72, this form must be submitted to Treasury when the incurred aggregate insured losses (including reserves for "incurred but not reported" losses) for an insurer, or collectively for a group of affiliated insurers, exceed an amount equal to 50 percent of the insurer's deductible within a calendar year. One form should be submitted based on all insured losses applicable to a particular calendar year once there has been a Program Trigger Event applicable to that calendar year.
- Certification of Loss (Form TRIP 02) – Pursuant to 31 CFR 50.73, these forms are to be used by insurers claiming the Federal share of compensation under the Terrorism Risk Insurance Program for insured losses arising from Program Trigger Events. The initial, and if necessary, supplemental, Certification(s) of Loss are to include data relevant to all insured losses paid or that will be paid as specified in 31 CFR 50.73(b)(2)(i) based on all Program Trigger Events within a Calendar Year. Schedules A, B, and C (see below) are required supporting documentation for this Certification of Loss form. Treasury must receive, or have received, a Notice of Deductible Erosion for the relevant Calendar Year in order to process a Certification of Loss.
- Schedule A – Declaration of Direct Earned Premium and Calculation of Insurer Deductible (Form TRIP 02A) – This form is required in order to determine each insurer's Calendar Year deductible under the Terrorism Risk Insurance Act (TRIA). It must be completed and certified by an officer of the insurer, and submitted to Treasury with an initial Certification of Loss (Form TRIP 02), or at the insurer's option, with the Notice of Deductible Erosion (Form TRIP 01). Declaration of Direct Earned Premium and Calculation of Insurer Deductible General Instructions
- Schedule B – Certification of Compliance with Section 103(b) of TRIA (Form TRIP 02B) – This form contains certifications that the insurer/group has complied with the requirements of TRIA and the regulations and therefore is eligible to receive the Federal share of compensation. It must be completed, certified by a designated officer of the insurer/group, and submitted to Treasury with each Certification of Loss (Form TRIP 02).
- Schedule C – Bordereau (Form TRIP 02C) – The purpose of Schedule C (commonly known in the insurance industry as a Bordereau) is to provide the necessary underlying claim information that substantiates and supports the initial and supplementary Certifications of Loss. The combination of these reports and certifications will promote the prompt payment of insurer submissions and provide the information needed for control purposes. Schedule C may be submitted using an Excel, CSV, or pipe delimited text file format. Schedule C Bordereau General Instructions
- Proposed Settlement of Third Party Claims (Form TRIP 03) – The purpose of this form is to submit a proposed settlement for review and processing. Pursuant to 31 CFR Part 50, Subpart K (Sections 50.102 and 50.103), proposed settlements resulting from a certified act of terrorism which exceed $2 million for personal injury or death, or $10 million for property damage liability, require Treasury's advance approval as a condition precedent for inclusion in an insurer's aggregate insured losses in its request for Federal share of compensation. Insurers are required to submit a separate completed form for each proposed settlement.
- Direct Written Premium and Surcharge Calculations – Section 103(a) of TRIA authorizes Treasury use policyholder surcharges to recoup Federal payments made under the Program. The purpose of these forms is to determine and document the amount of the Federal Terrorism Policy Surcharge to be submitted by each individual insurer (rather than by an affiliated group as a whole). Treasury will establish an assessment period during which policyholders of commercial property and casualty insurance policies must pay, and insurers must collect, the Federal Terrorism Policy Surcharge for remittance to Treasury.
- Direct Written Premium and Monthly Surcharge Calculation (Form TRIP 04A) – Each insurer will be required to complete this form on a monthly basis, starting with the first month within the assessment period and ending with November of the same calendar year. Monthly submissions are due no later than the last business day of the calendar month after the month for which premium is reported. Direct Written Premium and Monthly Surcharge Calculation General Instructions
- Direct Written Premium and End of Year Calculation (TRIP 04B) – Following the final submission of TRIP 04A in November (as outlined above), each insurer will be required to complete this form on an annual basis until the end of the assessment period. Annual submissions are due no later than March 1. Direct Written Premium and End of Year Calculation General Instructions
- Data Call (Form TRIP 05) – The purpose of this form is to collect data from insurers in a variety of circumstances. TRIA requires the Secretary of the Treasury to notify Congress when the Secretary estimates that aggregate insured losses under the Program will reach $100 billion in a calendar year. Treasury is also required to publish an estimate of aggregate insured losses to determine whether mandatory recoupment of the Federal share of compensation will be required. This form will be used to collect data from insurers regarding their aggregate insured losses. In addition, 31 CFR 50.91(d) permits Treasury to issue a data call to insurers to collect insurer deductible and insured loss information year for purposes of determining initial or recalculated recoupment amounts. Similarly, 31 CFR 50.114 permits Treasury to issue a data call for purposes of determining initial or recalculated Pro Rata Loss Percentages. Insurers will only be required to complete TRIP 05 to the extent instructed to do so by Treasury in the Federal Register Notice issuing the data call, as Treasury may seek to obtain relevant information through other means, depending upon the circumstances presented. Data Call General Instructions
- Certification Data Call (Form TRIP 06) – No act of terrorism may be certified by the Secretary if commercial property and casualty insurance losses arising from the event do not exceed in the aggregate $5 million. The purpose of this form is to issue a data call to insurers to collect information regarding projected and actual losses in connection evaluating an act for certification as an act of terrorism. Insurers will only be required to complete TRIP 06 to the extent instructed to do so by Treasury in the Federal Register Notice issuing the data call, as Treasury may seek to obtain relevant information through other means, depending upon the circumstances presented. Certification Data Call General Instructions
- Monthly Claims Report (Form TRIP 07) – Under 31 CFR 50.53(a), within 60 days of establishing one or more claims associated with a certified act of terrorism, insurers are required to report to Treasury information regarding these claims. The purpose of this form is to provide Treasury, in advance of the time that a participating insurer may be required to provide information in support of payment of the Federal share of compensation, with loss information arising from a certified act of terrorism. This form must be submitted until all claims arising from the certified act of terrorism have been resolved. Monthly Claims Report General Instructions
In the event that Federal payments are made to insurers under TRIP, TRIA includes a mechanism for the Secretary to recoup "terrorism loss risk-spreading premiums" from insurers. When imposed by the Secretary, insurers are required to collect such premiums from policyholders as a surcharge on insurance policies for TRIP-eligible lines of insurance after the calendar year in which the Federal payments are made, and to remit them to the Secretary. The requirement to collect terrorism loss risk-spreading premiums and remit such premiums to Treasury applies to all insurers of TRIP-eligible lines, whether or not they received Federal payments.
The amount of recoupment is determined according to provisions of TRIA and the total insured losses from certified acts of terrorism in a particular year.
Under 31 CFR Subpart I, for the purposes of investigation, confirmation, audit, and examination, Treasury is authorized to access all books, documents, papers, and records of an insurer that are pertinent to amounts paid to an insurer as a Federal share of compensation, or pertinent to any Federal terrorism policyholder surcharge.
Accordingly, any insurer that seeks payment of a Federal Share of compensation must retain all records necessary to fully disclose this information, including (but not limited to) records regarding premiums and insured losses for all commercial property and casualty insurance issued by the insurer, and information relating to any adjustment in the amount of the Federal share of compensation payable.
Insurers are required to retain detailed records for no less than five (5) years from the date of termination of any reinsurance agreement involving property and casualty insurance subject to the act. Insurers are required to retain records relating to premiums for no less than three (3) years following the conclusion of the policy year. Insurers are required to retain records relating to underlying claims for no less than five (5) years following the final adjustment of the claim.
In addition, all insurers that collect a Federal terrorism policyholder surcharge are required to retain records related to the surcharge, including (but not limited to) records of the property and casualty insurance premiums subject to the surcharge, the amount of surcharge imposed on each policy, aggregate surcharges collected, and aggregate surcharges remitted to Treasury during each assessment period. These records must be retained for no less than three (3) years following the conclusion of the assessment period or the settlement of accounts with Treasury, whichever is later.
Certain claims require Treasury's pre-approval prior to their inclusion on TRIP 02C (Bordereau). 31 CFR Part 50, Subpart K (Sections 50.102 and 50.103) specify proposed settlements resulting from a certified act of terrorism which exceed $2 million for personal injury or death, or $10 million for property damage liability,
Insurers can request approval of proposed settlements by submitting Form TRIP 03 (Proposed Settlement of Third Party Claims) through Treasury's web-based Facility. Alternatively, insurers may submit a paper copy of Form TRIP 03.
To receive payments of the Federal share of compensation, insurers will be required to complete a supplier entry request form to register their information with the Bureau of the Fiscal Service. This registration will be used by the Bureau of the Fiscal Service to facilitate payment through electronic funds transfer (EFT) to the insurer's bank. The supplier entry request form and email will be made available to insurers in the event of a certified act of terrorism.
Insurers are permitted to request payment for the Federal share of compensation using either Form TRIP 02 (Certification of Loss) or Form TRIP 02C (Bordereau). Requests can be made for insurer claim payments already made, or about to be made. After Facility review and Treasury approval, the insurer will be notified that the request has been approved and the Federal share of compensation has been transferred to the insurer's account.
Insurers may be required to make payments to Treasury under certain circumstances.
An insurer seeking advance payment of the Federal share of compensation is required to establish an interest-bearing account to receive funds. All interest earned on advance payments must be remitted to Treasury on a quarterly basis (at a minimum).
Overpayment of the Federal share of compensation to an insurer may arise through changed conditions subsequent to the payment, such as a recalculation of the insurer deductible or later insurer recoveries from other sources. Overpayments must be remitted to Treasury.
Payments to Treasury may be remitted by check or wire transfer. Checks should be made payable to U.S. Treasury and addressed to Bureau of the Fiscal Service, Attn: Accounts Receivable A3-C, PO Box 1328, Parkersburg, WV 26106-1328. Wire transfers should be made to the Federal Reserve Bank of New York, ABA number 021030004, Account number 820010001000.
In the event of a certification of an act of terrorism, the Facility will be activated and will provide contact information for insurers to seek assistance via telephone or e-mail. In the interim, questions regarding the claim process may be directed to: TRIP.firstname.lastname@example.org.