In its rules, Treasury identified the characteristics of residual market mechanisms that must participate in TRIP.

These characteristics include mechanisms that are created by a state legislature, that provide commercial p-c insurance to policyholders either directly or through servicing carriers, that make commercial p-c insurance available for hard-to-place risks and that allocate or share profits and losses with private insurers.

Treasury added that residual market mechanisms that exist solely for windstorm coverage also are included in TRIP.

Treasury noted that it received a comment asking it to exclude single peril wind insurance from TRIP. The comment, Treasury said, suggested that single peril wind insurance is similar to flood and earthquake insurance, which are not included.

However, Treasury said, it is not excluding single peril wind insurance at this time.

But Treasury added it may later request further comments on excluding single peril natural disaster insurance that is currently included in the program.

Anne Sittmann, a representative of the Des Plaines, Ill.-based National Association of Independent Insurers, said that overall, NAII believes that Treasury is interpreting the Terrorism Risk Insurance Act fairly.

However, she added, NAII is concerned over the length of time it is taking Treasury to promulgate all the final rules.

In particular, Ms. Sittmann said, the final rules relating to the filing of claims are still pending.

She noted that Treasury has said that it may issue the claims rules by the end of the month. NAII, she said, encourages Treasury to issue the rules.

In a statement, Wayne Abernathy, assistant Treasury Secretary for Financial Institutions, said that Treasury will be moving forward with the remaining regulations, including the procedures for submitting claims "in the coming weeks."

In addition, he said, Treasury's Office of Economic Policy is well along in developing nationally representative survey instruments for insurers, reinsurers and policyholders on conditions in the terrorism insurance market.

The survey, Mr. Abernathy said, will form a key component of Treasury's evaluation of the effectiveness of the program.

"It is essential that insurers and other entities take the time to complete the survey," Mr. Abernathy said.

"The Terrorism Risk Insurance Act created a temporary program that expires in a little over two years, and we are anxious to learn about developments in the terrorism risk insurance market and the methods that are being employed to manage potential exposures," he said.

TRIP expires on Dec. 31, 2005.