The Treasury Department said Friday that it is extending a provision of the Terrorism Risk Insurance Act that requires commercial property and casualty insurers to make terrorism coverage available.
The act, passed by Congress in November 2002, created a three-year program in which the federal government shares in the cost of a foreign terrorist attack that produces at least $5 million in insured losses. In return, insurers were required to offer terrorism coverage on commercial policies, but only through the end of the year.
The act mandated that Treasury decide by Sept. 1 whether to extend the coverage requirement through the end of 2005. The agency opted to make the decision now to avoid uncertainty.
