Washington–A study by the RAND Corp. has found the Terrorism Risk Insurance Act is not much of a government burden because only a huge terrorist attack or a series of large ones within a year would trigger a federal contribution.
That's because federal subsidies to insurance companies only go into effect if TRIA-covered insured losses exceed $15 billion, the report, issued earlier this week, said.
The study also suggests that the federal government consider encouraging uninsured businesses to buy terrorism insurance coverage, because somewhat less than half of all businesses now do so.
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