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Zorluk: KolayTerrorism Risk Insurance Act (TRIA)

An internal auditor at a regional insurance carrier is reviewing newly drafted policies to ensure compliance with federal laws. Under the provisions of the Terrorism Risk Insurance Act (TRIA), for which of the following contracts must the insurer present a mandatory offer of terrorism coverage?

  1. A
    A treaty reinsurance agreement assumed by the carrier
  2. B
    A group life insurance plan provided to corporate employees
  3. A commercial general liability policy issued to a retail businessCevap
  4. D
    A financial guaranty contract protecting against market losses

Cevap

A commercial general liability policy issued to a retail business
The correct answer is the commercial general liability policy. TRIA specifically mandates that insurers offer terrorism coverage for commercial property and casualty insurance policies. A standard commercial general liability contract clearly falls into this mandatory category.

Adım Adım Çözüm

1
Identify the purpose and scope of the Terrorism Risk Insurance Act (TRIA).
TRIA provides a federal backstop for commercial property and casualty insurance losses resulting from certified acts of terrorism.
Understanding the fundamental scope of TRIA helps eliminate policy types that are not commercial property and casualty lines.
2
Recall the specific exemptions under TRIA.
TRIA explicitly excludes life and health insurance, reinsurance, and financial guaranty insurance.
Knowing the statutory exclusions is necessary to evaluate and eliminate the incorrect options.
3
Evaluate the given options to find the covered commercial line.
The commercial general liability policy is the only option that falls under standard commercial property and casualty lines without being excluded.
This directly fulfills the mandatory offer requirement established by the Act.

Anahtar Kavram

TRIA Covered Lines and Exemptions
Tahmini Süre:45s
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Konular

Terrorism Risk Insurance Act (TRIA)

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