Frequently Asked Questions and Answers regarding the 2007 TRIA Extension - Provided by The Hartford:

Q: What is the effective period of the 2007 Terrorism Risk Insurance Act?
A: This act, entitled “Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), became effective immediately upon the President’s signature (December 26, 2007), and will remain in effect until December 31, 2014.

Q: Did the Reauthorization Act result in any significant changes from the prior legislation?
A: Yes, as a result of the December 2007 legislation, three major changes were made to the federal program:

1. The definition of “certified acts of terrorism” was amended to include what is commonly referred to as domestic acts of terrorism. This is viewed as a major improvement in the legislation, as TRIA could now address attacks similar to those in London and Madrid, however, as a policy may contain a limitation or exclusion relating to “certified acts of terrorism” and/or “other acts of terrorism” or “non-certified acts of terrorism” this change in the legislation may impact coverage.
2. The operation of the $100 billion cap on losses in a Program Year (January 1 through December 31) has been clarified.
3. The federal participation in the payment of terrorism losses has been set at 85% of that portion of such insured losses that exceed the applicable insurers deductible.

Q: Will The Hartford notify policyholders of the major changes in the legislation?
A: Yes, The Hartford will comply with TRIA’s disclosure and notification requirements.

1. For mid-term policies, defined as policies in effect prior to December 26, 2007, no action is required or is being taken. Offers and disclosures that were made on those policies that are in compliance with the Terrorism Risk Insurance Extension Act of 2005 are deemed in compliance with the 2007 legislation.
2. For policies effective December 26, 2007 and later, but processed before modifications to policy writing and quote systems are completed, The Hartford will mail important compliant disclosure notices along with appropriate endorsements or forms to policyholders.

Link to correspondence with policyholders and related endorsements.

Q: What does a policyholder do if they want to continue to decline terrorism coverage?
A: Based upon the changes in the 2007 legislation, should a policyholder elect to decline coverage for certified acts of terrorism, they will need to notify The Hartford of such an election, as prior declinations of coverage cannot be assumed on a going forward basis. Policyholders, or their agents, may not elect to decline coverage for certified acts of terrorism before a new offer is made by The Hartford.

Q: Will agents or brokers be permitted to make blanket acceptance or rejections on behalf of policyholders?"
A: No. Based on the “make available” requirements under TRIA, The Hartford is requiring that policyholders provide a written confirmation of their desire to reject coverage for “certified acts of terrorism”.

Q: As a result of the 2007 legislation, will there be any changes to Workers' Compensation forms and rates?
A: Yes. The Hartford has amended its disclosure notice to provide updated information on the 2007 legislation. The Hartford will also be implementing changes in the foreign terrorism endorsement and the Domestic Terrorism, Earthquakes and Catastrophic Industrial Accidents (DTEC) endorsement as filed by the National Council on Compensation Insurance, Inc. (NCCI) on our behalf. There are some variations by state based on what has been filed by the Bureaus.

Q: Where can I find additional information relating to TRIA?
A: www.treas.gov is the website of the United States Department of the Treasury. Information on TRIA, as well as a copy of the Act and relevant regulations, along with other materials can be found on this site. To help guide your navigation of this website, The Terrorism Risk Insurance Program is located under the Office of Financial Institutions, which is part of the Domestic Finance Section.