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American Politics and Insurance

Many Americans have many more complaints withbut the act is designed arrange a provisional
the American government and politics, and howprogram that makes sure both citizens and
ill-prepared the government was for helpinginsurance companies are prepared - as
American citizens before, during, and afterprepared as can be - in the event of a
Hurricane Katrina struck is only one example.terrorism attack. TRIA does this by
However, it is apparent that the Americanguaranteeing that the federal government will
government and the politics that surround itshare the costs of losses due to terrorism
are not just sitting around waiting for theattacks with insurance companies. This helps
next disaster to strike - they have beenensure that insurance companies will not, for
making preparations, and not just for naturallack of better terms, run out of money. It
disasters  such  as  hurricanes.also helps ensure that American citizens
provided with the help they needs, as well as
Natural disasters are not the onlybe  compensated  for  their  losses.
emergencies in which organizations have been
founded to help citizens when insuranceInsurance companies were not adequately
policies are nonexistent, or not enough;prepared for the financial losses that
organizations such as the Federal Emergencyresulted from the September 11, 2001
Management Agency, better known as FEMA, haveterrorist attacks, and had to rely heavily on
stepped in and helped during troubled times.reinsurers, companies that make available
However, past terrorist attacks, and presentinsurance to insurance companies, to help pay
risks of terrorist attacks, have prompted thethe cost of damages. Now that TRIA is in
federal government to get involved and passeffect, insurance companies are at less risk
the Terrorism Risk Insurance Act, also knownfor being inadequately funded. Plus, the
as  TRIA.time it takes to underwrite an insurance
policy is reduced since the losses have been
TRIA may not be an organization like FEMA,reduced.



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