certified act of terrorism
A terrorist act that is eligible for coverage under the Terrorism Risk Insurance
Act (TRIA). Such acts are certified by the Secretary of the Treasury, applying
criteria spelled out in TRIA. To qualify as a certified act of terrorism, the
incident must: (1) be a violent act or an act that is dangerous to human life,
property, or infrastructure; (2) cause damage within the United States or other
area of U.S. sovereignty (e.g., an U.S. embassy, airplane, ship); (3) be committed
by someone acting on behalf of a foreign person or foreign interest, 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 U.S. government by coercion; and (4)
produce property-casualty (P&C) insurance losses in excess of $5 million. Insurers
paying claims in response to certified acts of terrorism qualify for federal
reimbursement. See also Noncertified act of terrorism;
Terrorism Risk Insurance
Act of 2002.
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