TRIA establishes specific regulatory powers, coverage mandates, and loss thresholds for commercial property and casualty insurers. Match the following TRIA regulatory and compliance components to their correct statutory definitions or parameters.
- Certification AuthorityThe regulatory authority held by the Secretary of the Treasury, who must act in consultation with the Secretary of Homeland Security and the U.S. Attorney General.
- Make Available ProvisionThe statutory mandate requiring carriers to offer terrorism coverage on the same terms and limits as standard coverage, which the commercial policyholder may then voluntarily accept or reject.
- Excluded Insurance LinesCategories of commercial coverage that fall outside the federal backstop program, such as commercial auto, burglary and theft, and professional liability (excluding D&O).
- Minimum Certification ThresholdThe statutory rule stating an event cannot be officially designated as an act of terrorism unless it causes at least $5 million in aggregate property and casualty insurance losses.
Answer
Certification Authority matches the Treasury Secretary's power; the Make Available Provision matches the mandate for insurers to offer coverage that insureds can reject; Excluded Insurance Lines matches commercial auto and professional liability; and the Minimum Certification Threshold matches the $5 million loss requirement.
Each TRIA component serves a specific regulatory function: the Treasury Secretary holds certification authority, the $5 million threshold acts as a minimum baseline for certification, the Make Available provision ensures commercial access while preserving the insured's right to reject, and certain lines like commercial auto remain statutorily excluded.
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Key Concept
TRIA Compliance and Certification Requirements