Under TRIA, which threshold defines Large losses?

• A. Less than $100 million
• B. Less than $27.5 billion
• C. More than $27.5 billion and less than $100 billion
• D. More than $100 billion

Answer: (C)

TRIA uses tiered thresholds to determine how much of the terrorism loss the federal backstop covers. The category labeled as Large losses is defined by insured losses that exceed 27.5 billion but are not more than 100 billion in a calendar year. This range sets the point where the government’s backstop becomes more involved, up to the program’s overall cap. Losses below 27.5 billion aren’t in this Large-loss tier, and losses above 100 billion exceed the TRIA cap for that year.