This communication describes CIRMA's coverages regarding terrorism-related losses to our members.

The President of the United States signed into law the Terrorism Risk Insurance Act of 2002 on November 26, 2002.

The Terrorism Act creates a program whereby the Federal government shares with the insurance industry the risk of future foreign terrorist attacks. The Terrorism Act applies when the Secretary of the Treasury certifies that an event meets the definition of an act of terrorism, i.e., results in losses exceeding $5,000,000 in the aggregate and is committed by an individual or individuals acting on behalf of any foreign person or foreign interest to coerce the government or population of the United States.

While the Terrorism Act applies to all property/ casualty insurance, it does not result in any change in CIRMA’s coverages.

Workers’ Compensation Pool:

CIRMA affords workers’ compensation insurance for injuries or disease caused or aggravated by exposure to conditions of employment regardless of whether terrorist-related or not.

Liability-Automobile-Property Pool:

CIRMA’s liability programs' afford coverage for all covered losses. Terrorist acts are not excluded from coverage.

CIRMA affords property coverage, up to stated limits purchased by each member, for covered losses whether terrorist-related or not.

CIRMA entered into an agreement with our excess property reinsurer to provide extended coverage pursuant to the terms of the Terrorism Act effective November 26, 2002.

CIRMA paid an additional premium to our reinsurer for the extended coverage. We are not passing this charge on to CIRMA’s members.

If you have any further questions regarding your coverage(s), please call (203) 498-3000.