What it does
WC 00 04 22 C (Ed. 1-21) addresses the Terrorism Risk Insurance Act of 2002 as amended and extended by the Terrorism Risk Insurance Program Reauthorization Act of 2019. It tells the insured that the policy covers workers compensation losses caused by acts of terrorism, including state-mandated benefits, and that the carrier charges premium for that exposure, shown in Item 4 or in the endorsement's Schedule.
Key provisions
- Act of Terrorism: an act certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security and the Attorney General, that meets the act's requirements.
- Insured Loss: for workers compensation, includes an act of war, except in Pennsylvania.
- Insurer Deductible: for January 1, 2021 through December 31, 2027, 20% of the carrier's prior-year direct earned premium.
- Federal share: if industry insured losses in a year exceed $200,000,000, the federal government pays 80% of the carrier's losses above its deductible.
- Cap: no federal payment and no carrier liability for insured losses above $100,000,000,000 in a calendar year; below the cap, the carrier may pay a pro rata share set by the Treasury.
Who needs it
Every policyholder. Workers compensation covers terrorism under state law, so the disclosure explains the charge and the federal backstop rather than offering a choice. Massachusetts formerly used its own version (WC 20 01 01, withdrawn January 1, 2015).
Quoting and selling notes
- The terrorism charge appears in Item 4 or in the Schedule as a rate and premium by state.
- TRIPRA 2019 is scheduled to expire December 31, 2027. NCCI's WC 00 01 16 notice, effective with January 1, 2027 policies, tells insureds the charge may change if the program lapses.
Related forms
Pending law change notice WC 00 01 16; catastrophe premium WC 00 04 21.
