As we have previously reported here, one of the requirements under the Terrorism Risk Insurance Program Reauthorization Act of 2015 (“TRIPRA”) is that the Department of Treasury must report to Congress on the effectiveness of the legislation. In furtherance of this mandate, the Federal Insurance Office (“FIO”) issued a voluntary data call with a deadline of April 30, 2015. While there had been some thought in the industry that the FIO would work together with the National Association of Insurance Commissioners (“NAIC”) to coordinate a single data call, it now appears that the FIO and NAIC will be issuing separate and distinct data requests.
The FIO’s data call is a voluntary request and partial responses are acceptable in order to help Congress consider augmenting or revisiting TRIPRA in 2020. Additionally, any interested parties may submit comments to the FIO by April 15, 2016 as to the effectiveness and impact of TRIPRA and its progeny.
By contrast, the NAIC’s data call will focus more on solvency issues rather than reporting on the effectiveness of TRIPRA to Congress. California, Connecticut, D.C., Florida, Illinois, Louisiana, Missouri, New York, Pennsylvania, Rhode Island and Texas will be participating in this request. The NAIC data call is tentatively set for September 2016 and, unlike the FIO’s data call which is voluntary, an insurer writing coverage in the aforementioned states will be required to provide information in all jurisdictions where they are writing coverage under TRIPRA.
TRIPRA is the latest piece of legislation dating back to the original passage of the Terrorism Risk Insurance Act of 2002 (“TRIA”), which established a federal program to assist in the offering of terrorism coverage on commercial property and casualty policies.