What is the primary requirement of the Terrorism Risk Insurance Act (TRIA) for commercial insurance companies?

The primary requirement of the Terrorism Risk Insurance Act (TRIA) for commercial insurance companies is that they must offer terrorism insurance to commercial policyholders. This legislation was enacted following the September 11 attacks to provide a federal backstop for insurance claims related to acts of terrorism. By ensuring that commercial insurers make terrorism coverage available, TRIA aims to stabilize the market for such coverage, which might otherwise be unaffordable or unavailable due to the heightened risks associated with terrorism. This requirement helps protect businesses from the financial risks of terrorist acts, while also encouraging insurers to continue providing this crucial coverage.