General Insurance Article - LMA issues interpretation on US Treasury's TRIA guidance

 The Lloyd’s Market Association (LMA) has this week issued a guidance note to the London insurance market on Terrorism Risk Insurance Act (TRIA) legislation.

 The note is in response to the Interim Guidance published by the US Department of the Treasury on 4 February, which addresses the application of certain provisions of TRIA and the Terrorism Risk Insurance Program regulations following enactment (on 12 January 2015) of the 2015 Terrorism Risk Insurance Program Reauthorization Act of 2015.

 The Interim Guidance is mainly concerned with the ‘make available’ provisions under TRIA and is provided under five headings: documentation; form of disclosure; timing of disclosure; content of disclosure; and ‘new offers of coverage’.

 The LMA’s guidance examines the effects of the Treasury’s Interim Guidance by interpreting and summarising these five headings and sets out the arguments the LMA has followed to draw the conclusion that the ‘make available’ requirements of the Act apply retroactively to 1 January 2015 and provide restated guidance as to how to ensure that a ‘compliant’ TRIA offer has been made.

 For further information on the LMA’s guidance on TRIA, click here