Under the Terrorism Insurance Program, what portion of insured losses beyond the insurer's deductible is paid by the federal government?

Under the Terrorism Insurance Program, what portion of insured losses beyond the insurer's deductible is paid by the federal government?

• A. 100%
• B. 50%
• C. 85%
• D. 15%

Answer: (C)

The Terrorism Insurance Program shares the remaining losses after the insurer’s deductible is met. The federal government pays 85% of the insured losses that exceed the deductible, while the insurer covers the remaining 15%, up to the program’s limits. This 85% federal share helps keep terrorism coverage available by transferring most of the post-deductible risk to the government, with private insurers still bearing a smaller portion.

The Terrorism Insurance Program shares the remaining losses after the insurer’s deductible is met. The federal government pays 85% of the insured losses that exceed the deductible, while the insurer covers the remaining 15%, up to the program’s limits. This 85% federal share helps keep terrorism coverage available by transferring most of the post-deductible risk to the government, with private insurers still bearing a smaller portion.