Exam DISC-IA Practice Question 219
Study guide: Exam DISC-IA
An insurer group's prior-year direct earned premium in the lines covered by the Terrorism Risk Insurance Program was $500,000,000. This year it pays $180,000,000 of insured losses from certified acts of terrorism, and industry losses exceed the program trigger. The deductible is 20% of prior-year premium and the federal share is 80%. How much does the federal government pay the group?
- A) $64,000,000
- B) $80,000,000
- C) $116,000,000
- D) $144,000,000
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