· Resources: Terrorism Insurance Information

     We would like to provide you information about the Federal Terrorism Risk Insurance Act of 2002.

     While insurance companies will remain primarily responsible for future terrorism losses, the Federal Government will now share in the cost of catastrophic foreign terrorist events, defined and approved as a "certified loss" by the Secretary of Treasury. The Federal Government will not share in the costs of domestic acts of terrorism, such as the Oklahoma City bombing, under the Act.

     To qualify as a "certified loss":
          · Damage must occur in the United States (extended to losses on           United States Flag Ships, on aircraft subject to certain U.S. codes, and at           any U.S. mission);
          · The act must be on behalf of foreign interests;
          · The act must not be committed in the course of war;
          · The Secretary of Treasury must declare the loss a "certified loss;" and
          · Aggregate losses must exceed $5 million.

     The program ends December 31, 2005.

     The Act involves commercial lines of business. Therefore it will affect the policy you have for your business, but not the personal lines insurance you might carry.

     For more detailed information, visit the U.S. Department of the Treasury's Terrorism Risk Insurance Program website.