Under TRIA, what percentage of insured losses is covered by the government after the deductible thresholds are met?

Prepare for the CAS Exam 6 with detailed study materials. Use flashcards and multiple-choice questions, each with hints and explanations, to get exam-ready!

Multiple Choice

Under TRIA, what percentage of insured losses is covered by the government after the deductible thresholds are met?

Under TRIA, the government step in as a backstop for terrorism losses. Once the annual deductible thresholds are met, the federal government covers the majority of the remaining insured losses. The standard sharing is that the government pays 85% of the covered losses above the deductible, while the insured or their insurers cover the remaining 15%. This 85% share is the typical level of government involvement once the trigger is reached, subject to annual program caps.

Under TRIA, the government step in as a backstop for terrorism losses. Once the annual deductible thresholds are met, the federal government covers the majority of the remaining insured losses. The standard sharing is that the government pays 85% of the covered losses above the deductible, while the insured or their insurers cover the remaining 15%. This 85% share is the typical level of government involvement once the trigger is reached, subject to annual program caps.

More practice questions