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AAIS Prepares Filing Action for Revised Terrorism Coverage

Jan. 16, 2015 AAIS Advisory notice

AAIS is initiating multistate filings of revised endorsements  for providing terrorism coverage under the provisions of the recently reauthorized federal Terrorism Risk Insurance Program (TRIP).

The program was allowed to expire at the end of 2014 by the 113th Congress, but the new 114th Congress reauthorized it retroactively to Jan. 1, 2015, with President Obama's signature.

Insurers affiliated with AAIS for affected lines received bulletin 15-0199 today indicating what has changed and not changed under the renewal act (also known as "TRIPRA 2015"). The bulletin also provides affiliates with revised disclosure notices for notifying affected insureds of the availability of federally reinsured terrorism coverage.

The bulletin identifies and explains the following changes that require changes to AAIS terrorism materials:

  • The extension of the program through Dec. 31, 2020;
  • A change in the definition of an "act of terrorism;" 
  • A change in terminology from "program year" to "calendar year;" and
  • Changes in references to the federal share of insured losses.

The bulletin also identifies changes in the program that do not require changes to AAIS materials, including:

  • Changes in the determination of an insurer's deductible under the program;
  • Incremental increases in the level of losses incurred before coverage is triggered under the program;
  • Changes in the notice requirement regarding the $100 billion cap on annual liability under the program; and
  • Changes in the aggregate retention and mandatory recoupment amounts to which affected insurers and policyholders are subject.

Finally, the bulletin summarizes key elements of the federal terrorism program that have not changed, including the lines of insurance covered by the program and the requirement that insurers in affected lines make that coverage availability to insurance buyers.

Filings are expected to be submitted in individual states starting next week.


AAIS Advisory notices are posted periodically to announce AAIS product developments, and to provide news items that are relevant to our program users. Advisory notices are news summaries that paraphrase documents which should be consulted directly for complete, authoritative information.

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