A provision attached to an insurance policy that restricts, excludes, or
otherwise explains coverage for loss due to terrorist acts. The passage of the
Terrorism Risk Insurance Act (TRIA) of 2002 voided all terrorism exclusion
endorsements then in force on commercial property and casualty policies, to the
extent that such exclusions eliminated coverage for certified acts of terrorism
as covered by the federal program. It also led to the creation of many standard
terrorism endorsements that provide for a wide range of terrorism coverage
options: from no terrorism coverage at all (permissible only when the insured
rejects or fails to pay for TRIA terrorism coverage) to full coverage for both
international and domestic terrorism, subject to the $100 billion program-year
cap established in the Act.