We were pleased to learn that on Wednesday, December 26, 2007, President Bush signed into law H.R. 2671, the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA).
The law extends the program for seven years, eliminates the distinction between foreign and domestic acts of terrorism, maintains the current federal share (85%) and insurer co-pay (15%) above the insurer retention, hardens the cap on insurer aggregate liability at $100 billion and requires the express disclosure of same to policyholders. As is the case currently, it does not require insurers to offer coverage for nuclear, biological, chemical and radiological risks (NBCR). In addition, the bill maintains the current program trigger of $100 million and the mandatory recoupment layer of $27.5 billion for federal payments, specifies recoupment timeframes, and requires that 133% of federal outlays be recovered through policyholder surcharges. Finally, it provides for several studies of insurance availability/affordability for NBCR risks and for terrorism market capacity.
AEGIS will continue providing terrorism coverage for the membership as we have since the original bill was first enacted in 2002.