Captives, the Terrorism Risk Insurance Act, and the Market
- Topics:
- Terrorism Insurance
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Overview: The article defines two terms Captive and The Terrorism Risk Insurance Act. The Terrorism Risk insurance Act was critically needed in order to start bringing order and reason to a market which was dazed, confused. Since the insurance industry, pretty much at its own choosing, is regulated on a state-by-state basis, there was a need to step in quickly and provide an industry wide solution. Captives, which are perceived to have no terrorism exposure, wanted what came to be called an “opt in/opt out” provision. Congress determined that the secretary of the treasury would be the determiner of what defines an “act of terrorism,” who is an insurance company, and how assessments and claims will be handled. Captives were not a prime consideration in these discourses, although they are mentioned specifically in the Act. To know more in details for captive owners and Terrorism Act refer the article.
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Format: HTML | Date: Jan 2003 | Pages: 1
