Notice Board

Coverage for acts of terrorism, as defined in the Terrorism Risk Insurance Act (TRIA) which was enacted in the United States on November 26, 2002, where those acts precipitate a claim for a Covered Liability on the guarantor under OPA90 or CERCLA is already included within the terms of your COFR Facility Agreement with SIGCo. You are hereby notified that under the TRIA, as amended in 2015, the definition of act of terrorism has changed. As defined in Section 102(1) of the Act: The term “act of terrorism” means any act or acts that are certified by the Secretary of the Treasury—in consultation with the Secretary of Homeland Security, and the Attorney General of the United States—to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of certain air carriers or vessels or the premises of a United States mission; and to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. Under the 2015 reauthorization act, TRIA coverage was extended to December 31, 2020. The Program has since again been reauthorized, most recently by the Terrorism Risk Insurance Program Reauthorization Act of 2019 (2019 Reauthorization Act), which extended the Program through December 31, 2027. You should know that any losses in connection with the COFR Guaranty issued by SIGCo under the terms of the COFR Facility Agreement, and caused by certified acts of terrorism, would be partially reimbursed by the United States under a formula established by the TRIA, as amended. However, your policy may contain other exclusions which might affect your coverage, such as an exclusion for nuclear events. Under the formula, the United States Government generally reimburses 80% beginning on January 1, 2020, of covered terrorism losses exceeding the statutorily established deductible paid by the insurance company providing the coverage. The Terrorism Risk Insurance Act, as amended, contains a $100 billion cap that limits U.S. Government reimbursement as well as insurers’ liability for losses resulting from certified acts of terrorism when the amount of such losses exceeds $100 billion in any one calendar year. If the aggregate insured losses for all insurers exceed $100 billion, your coverage may be reduced. The portion of your annual premium that is attributable to coverage for acts of terrorism is 5%, and does not include any charges for the portion of losses covered by the United States government under the Act.