What types of insurance are excluded by the TRIA?

The Terrorism Risk Insurance Act (TRIA) was enacted to provide a temporary federal program to share the risk of terrorism among insurance companies and the federal government. It establishes a framework for how insurance claims related to acts of terrorism are handled.

Medical malpractice and life insurance are explicitly excluded from coverage under TRIA. This is because the Act focuses on property and casualty lines of insurance that are directly impacted by terrorism risks, while medical malpractice and life insurance operate under different parameters and coverages which do not typically involve terrorism in the same way. Medical malpractice insurance, for example, addresses negligence and malpractice by healthcare providers, while life insurance is concerned with the death of the insured, irrespective of the cause, including terrorism.

By excluding these types of insurance, TRIA specifically limits its focus to areas where the risks associated with terrorism are more likely to impact commercial interests and the economy directly, such as property damage or business interruption. This means that policies written for medical malpractice or life insurance would not benefit from the federal backstop provided by TRIA if a terrorist act were to occur.