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Difficulty: EasyTerrorism Risk Insurance Act (TRIA)

The Terrorism Risk Insurance Act (TRIA) requires insurers to offer coverage for certified acts of terrorism on certain lines of insurance. Which of the following lines of insurance are explicitly EXCLUDED from TRIA's mandatory participation provisions? (Select all that apply)

  1. Personal homeowners insuranceAnswer
  2. Life and health insuranceAnswer
  3. C
    Commercial property insurance
  4. D
    Workers' compensation insurance

Answer

The explicitly excluded lines are personal homeowners insurance and life and health insurance.
TRIA is designed specifically to stabilize the commercial property and casualty markets. Therefore, personal lines (such as homeowners insurance) and life and health insurance are explicitly excluded from the program's mandatory offer and federal backstop provisions.

Step-by-Step Solution

1
Identify the core insurance market targeted by TRIA.
TRIA was enacted to stabilize the commercial property and casualty insurance markets by providing a federal backstop.
Understanding the program's commercial focus helps distinguish between covered and excluded lines.
2
Determine which of the listed lines fall outside this commercial property and casualty scope.
Personal homeowners insurance (a personal line) and life and health insurance are outside this scope and explicitly excluded from TRIA.
TRIA does not mandate terrorism coverage offers or provide federal risk-sharing for personal or health-related lines.

Key Concept

TRIA Excluded Lines of Insurance
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Topics

Terrorism Risk Insurance Act (TRIA)

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