January 22, 2003—The Treasury Department has issued two rounds of interim guidance designed to help insurers comply with the new Terrorism Risk Insurance Act of 2002. The Department will also establish a new Terrorism Risk Insurance Program Office to implement the new terrorism insurance law.
The interim guidance documents were released on December 3 and 18. They address how to comply with the requirement to tell policyholders about the availability of terrorism insurance coverage, which types of insurers are required to comply with the new requirements, and more. The National Association of Insurance Commissioners (NAIC) has developed a model disclosure bulletin. Additional guidance and regulations are expected from the Treasury Department over the next several months.
Based on a report from BOMA International
