What event must occur for the Terrorism Risk Insurance Program to be activated?

For the Terrorism Risk Insurance Program (TRIP) to be activated, there is a specific threshold concerning the nature of the insured losses. When an act of terrorism occurs, the federal government activates the program if the amount of insured losses exceeds $100 million. This ensures that when significant acts of terrorism lead to substantial financial claims, a safety net is available to help stabilize the insurance market and provide support for affected insurers.

This threshold is designed to differentiate between routine claims and those that can severely impact the insurance industry and the economy. Claims exceeding $100 million indicate that the event has a widespread impact, warranting government involvement to manage and mitigate the financial repercussions.

The other figures presented do not align with the current requirements set out in the TRIP. Specifically, a lower threshold would not provide sufficient assurance of a major event, while higher amounts do not reflect the program's activation criteria. Thus, it is the $100 million figure that specifically serves as the activation point for the Terrorism Risk Insurance Program.