What is the annual cap on the federal government's obligation under the Terrorism Insurance Program?

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Multiple Choice

What is the annual cap on the federal government's obligation under the Terrorism Insurance Program?

Explanation:
Terrorism risk is covered by a federal backstop under TRIA, but the government's role has a finite limit. After private insurers meet their required retention, the federal government would pay a substantial portion of remaining insured losses from certified acts of terrorism, yet this obligation is capped. The cap is set at 100 billion dollars per calendar year, meaning the federal payment cannot exceed that amount in any given year. This limit keeps the government’s exposure finite while keeping the private market as the primary source of coverage.

Terrorism risk is covered by a federal backstop under TRIA, but the government's role has a finite limit. After private insurers meet their required retention, the federal government would pay a substantial portion of remaining insured losses from certified acts of terrorism, yet this obligation is capped. The cap is set at 100 billion dollars per calendar year, meaning the federal payment cannot exceed that amount in any given year. This limit keeps the government’s exposure finite while keeping the private market as the primary source of coverage.

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