In an age when people are overwhelmed by immediate deadlines, Dec. 31, 2005 seems a long way off. But, the property/casualty insurance industry must start preparing for that date now.
At the end of 2005, the federal terrorism reinsurance program established under the Terrorism Risk Insurance Act (TRIA) is scheduled to “sunset,” absent any congressional action to extend the program.
If the program expires, insurers need to be prepared with exclusions and/or coverage parts for terrorism losses to be used in place of those developed to comply with the program.