U.S. TREASURY ISSUES INTERIM RISK INSURANCE RULE

U.S. TREASURY ISSUES INTERIM RISK INSURANCE RULE    The U.S. Department of the Treasury issued on Friday an interim final rule as part of its implementation of Title I of the Terrorism Risk Insurance Act of 2002. This is the second in a series of regulations fine-tuning the actual functions of the Act.
   The Act sets up a temporary Terrorism Risk Insurance Program under which the federal government would share the risk of insured losses from certified acts of terrorism with commercial property and casualty insurers, until the program terminates on Dec. 31, 2005.
   Although this interim final rule is effective April 18, written comments on it may be submitted to the Treasury through May 19.
   The interim final rule clarifies, among other issues, statutory conditions for federal payment under the Terrorism Risk Insurance Program that require insurers to make certain disclosures to policyholders.
   The new rule does the same for requirements that insurers must “make available” terrorism risk coverage for insured losses under the program.
   Treasury recommends that comments on the interim final rule be submitted by e-mail at triacomments@do.treas.gov.