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USA PATRIOT Act Monitor News Release
Terrorism Risk 12-18-02 guidance.pdf
On December 18, 2002, Treasury announced additional interim guidance for the insurance industry in meeting certain requirements under the Terrorism Risk Insurance Act of 2002. The notice gives interim guidance on the definition of "insurer" in general and concerning specific categories of insurers. Insurers required to participate in the program include state-licensed or admitted insurers, eligible alien surplus line carriers, and insurers that are approved by federal agencies in connection with maritime, aviation, or energy activity. For alien surplus line carriers and foreign insurers that are approved by a federal agency in connection with maritime, aviation or energy activity, the guidance describes procedures they should follow to receive treatment similar to that received by domestic insurers and how they may estimate the portion of their insurance coverage that covered by the Terrorism Risk Insurance Program. As described in this guidance, all affiliates that meet the definition of insurer and are under common control with an insurer should be considered as one insurer for purposes of the Program. The guidance also describes how newly formed insurers (e.g. newly formed insurance companies that meet the definition of insurer but do not have the necessary data to calculate their deductibles) can calculate their deductibles. The guidance provides a list of state residual market entities and state workers’compensation funds required to participate. Finally, the guidance provides additional information on prior interim guidance regarding the NAIC model disclosures. The guidance, also available at www.treas.gov/trip, is attached.
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