Who certifies acts of terrorism under the Terrorism Risk Insurance Act (TRIA)?

The correct answer is that the Secretary of the Treasury, in cooperation with the Secretary of Homeland Security, certifies acts of terrorism under the Terrorism Risk Insurance Act (TRIA). This process is crucial because TRIA was enacted to provide a framework for the federal government to share the risk of loss from acts of terrorism with private insurers.

When an event is evaluated for certification as an act of terrorism, the Secretary of the Treasury assesses whether it meets specific criteria that reflect its catastrophic nature, such as intentional acts of violence to intimidate or coerce a civilian population or influence the policy of a government. The involvement of both the Secretary of the Treasury and the Secretary of Homeland Security ensures that the certification process draws on both financial and security expertise.

This collaborative certification process establishes a clear protocol for addressing potential claims under TRIA, thereby instilling confidence in the insurance market after major terrorist incidents. It highlights the federal government's role in risk management related to terrorism and provides a safety net for insurers and policyholders alike, helping to stabilize the market in the face of unpredictable risks.