Terrorism Risk Insurance Act Extends Until 2020
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Transcript of Terrorism Risk Insurance Act Extends Until 2020
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Terrorism Risk Insurance
Act Extends until 2020
Axis Capital Group Insurance
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Terrorism Risk Insurance Act Extends
until 2020
New York, NY - President Barack
Obama signed into law January
12 the extension of the Terrorism
Risk Program Reauthorization
Act of 2015 which extends the
program until December 31,
2020.
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Terrorism is defined as the violent acts perpetrated by or on behalf
of a foreign or domestic person or interest coerce or influence U.S.
Policy.
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The Terrorism Risk
Insurance Act is a
United States Federal
Law signed by Pres.
George W. Bush on
November 6, 2002 after
the devastating
terrorism attack on
September 11, 2001 at
the World Trade Center
resulting to a $40 billion
estimated insurance
loss.
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It was the worst fatal
attack on record for
both property and
fatalities and the
worst international
act of destruction on
American soil. The
law was set to
expire on 2005 but
was extended on
2007. The current
law expired on
December 31, 2014.
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Amendments of the said law was also
made in the extension which includes
program triggers from $100, 000, 000 to
$120,000,000 in 2016, $140,000,000 in
2017, $160,000,000 in 2018, $180,000,000
in 2019 until $200,000,000 in 2020 and
any calendar year thereafter.
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The extension of the said program has also been stretched into 6 years. The Treasury
Secretary becomes the decision maker on the Certification of a terrorist event (requiring
only consultation with the Secretary of Homeland Security and the Attorney General of
the USA).
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In addition, the Certification process will be reviewed (within 9 months of the enactment date of the 2015 Act), resulting in an improvement in the Certification process with the publication of rules and the establishment of a reasonable timeline for Certification.
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On the senates failure to extend the program before their holiday vacation,
taxpayers have hoped to have lesser
financial risks but some businesses dreaded
to lose or drop their terrorism coverage and
the general fear of having slow economic
growth when another attack occurs.
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So far, there are also a few countries around the world with long-time terrorism risk insurance policies over the years. United Kingdom, Netherlands and Iraq have their own kinds of programs. Countries such as Indonesia (with Jakarta as its main pool of insurance companies), Denmark and India have not imposed a compulsory on their terrorism insurance scheme.
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Insurance agencies such as Axis Capital with its group of insurance and
reinsurance companies scattered all over the world extends their coverage
as well in fear of being tagged as scams.