American Politics And Insurance

American Politics And Insurance



Many Americans have many more complaints with the​ American government and politics,​ and how ill-prepared the​ government was for helping American citizens before,​ during,​ and after Hurricane Katrina struck is​ only one example. However,​ it​ is​ apparent that the​ American government and the​ politics that surround it​ are not just sitting around waiting for the​ next disaster to​ strike – they have been making preparations,​ and not just for natural disasters such as​ hurricanes.

Natural disasters are not the​ only emergencies in​ which organizations have been founded to​ help citizens when insurance policies are nonexistent,​ or​ not enough; organizations such as​ the​ Federal Emergency Management Agency,​ better known as​ FEMA,​ have stepped in​ and helped during troubled times. However,​ past terrorist attacks,​ and present risks of​ terrorist attacks,​ have prompted the​ federal government to​ get involved and pass the​ Terrorism Risk Insurance Act,​ also known as​ TRIA.

TRIA may not be an​ organization like FEMA,​ but the​ act is​ designed arrange a​ provisional program that makes sure both citizens and insurance companies are prepared – as​ prepared as​ can be – in​ the​ event of​ a​ terrorism attack. TRIA does this by guaranteeing that the​ federal government will share the​ costs of​ losses due to​ terrorism attacks with insurance companies. This helps ensure that insurance companies will not,​ for lack of​ better terms,​ run out of​ money. it​ also helps ensure that American citizens provided with the​ help they needs,​ as​ well as​ be compensated for their losses.

Insurance companies were not adequately prepared for the​ financial losses that resulted from the​ September 11,​ 2001 terrorist attacks,​ and had to​ rely heavily on​ reinsurers,​ companies that make available insurance to​ insurance companies,​ to​ help pay the​ cost of​ damages. Now that TRIA is​ in​ effect,​ insurance companies are at​ less risk for being inadequately funded. Plus,​ the​ time it​ takes to​ underwrite an​ insurance policy is​ reduced since the​ losses have been reduced.




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