The US Treasury Department will not extend the federal government's terrorism insurance program to group life insurance.
Under a provision of the Terrorism Risk Insurance Act of 2002, the Treasury was required to examine market conditions to determine whether such an extension was necessary.
It concluded that there had not been an appreciable reduction in the availability of group life insurance coverage, though it did find a general lack of catastrophic reinsurance for insurers that offer such coverage.
Given that evaluation, the Treasury determined that it could not offer taxpayer-supported coverage for group life insurance.
"The decision is the result of a careful consideration of market conditions, with significant input from users and producers of group life insurance," Wayne Abernathy, assistant Treasury secretary for financial institutions, said in a statement.
