West Virginia Property and Casualty Licensing Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the West Virginia Property and Casualty Licensing Exam with our quiz. Use flashcards and multiple-choice questions with hints and explanations to enhance your preparation. Be exam-ready!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

According to the Terrorism Risk Insurance Act of 2002, what was the "trigger limit" for claims in the year 2018?

$100 million
$120 million
$160 million
$200 million

The correct answer is: $160 million

The "trigger limit" under the Terrorism Risk Insurance Act (TRIA) is the minimum amount of insured losses that must occur before the federal government starts to reimburse insurers for claims related to acts of terrorism. In 2018, this trigger limit was set at $160 million. This amount represents the threshold loss that must be exceeded for insurers to seek federal funds to cover the losses related to certified acts of terrorism. This adjustment of the trigger limit is part of the ongoing provisions and revisions surrounding TRIA, which has been extended and adjusted multiple times since its enactment. Understanding the specific figure in the context of the year is essential for grasping how the federal program coordinates with insurance practices in relation to terrorism risk. In earlier years or other contexts, different trigger limits may have applied, which is why recognizing the specific figure for 2018 is crucial for understanding how the act operated during that period.