Update January 15, 2015:
The Terrorism Risk Insurance Program Reauthorization Act of 2015 - H.R. 26, which President Obama signed into law Monday - extends the federal terrorism insurance backstop through Dec. 31, 2020. In addition, it gradually increases the trigger required to activate the program to $200 million from the previous $100 million and gradually increases the industrywide retention to $37.5 billion from the previous $27.5 billion.
EIM will provide coverage for losses resulting from an “act of terrorism” as defined by the Terrorism Risk Insurance Program Reauthorization Act of 2015. EIM will also cover losses that do not fall within the Federal Act’s definition of “act of terrorism”.
New endorsement wording will be released shortly.
Effective January 1, 2008:
President Bush signed HR 2761, the Terrorism Risk Insurance Program Reauthorizatio Act of 2007 (TRIPRA) into law on December 26, 2007. TRIPRA allows for a seven year extension of the current TRIA program through December 31, 2014. Section 102(1)(A)(iv) of TRIA is amended by striking "acting on behalf of any foreign person or foreign interest". This distinction eliminates the distinction between "certified" and "non-certified" acts as previously defined. Now, "certified" terrorism simply means any act that is certified by the Secretary of the Treasury in concurrence with the Secretary of the State and the Attorney General subject to four criteria whether or not committed by foreign interests or domestic.
EIM intends to cover terrorism to the extent covered by the Act as modified. In addition, the Act contains a $100 billion cap that limits the U.S. Government reimbursement as well as Insurers' liability for losses resulting from certified acts of terrorism when the amount of such losses exceeds $100 billion in any one calendar year. If the aggregate insured losses for all insurers exceed $100 billion, your coverage may be reduced.