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TRIP 04A Instructions

TERRORISM RISK INSURANCE PROGRAM

Direct Written Premium and Monthly Surcharge Calculation

General Instructions

1 General Instructions

1.1 Filing of Form

This form is required in order to determine and document each individual insurer’s amount to be 

submitted for the Federal Terrorism Policy Surcharge under the Terrorism Risk Insurance Act 

(TRIA). Affiliated insurers are not to be grouped together for this purpose. The form must be 

completed and certified by an officer of the insurer, and submitted to Treasury.

Insurers should maintain all worksheets and other documentation for the purposes of later auditing 

by the Terrorism Risk Insurance Program (Program). See 31 CFR Part 50 Subpart I for guidance. 

1.2 Assessment Period and Reporting Schedule

The assessment period means a period established by Treasury, during which policyholders of 

commercial property and casualty insurance polices must pay, and insurers must collect, the 

Federal Terrorism Policy Surcharge for remittance to Treasury.

For policies subject to the Federal Terrorism Policy Surcharge, the surcharge shall be imposed and 

collected on a written premium basis for policies that incept or renew during the assessment 

period. All new, renewal, mid-term, and audit premium for a policy term is subject to the surcharge 

in effect on the policy term effective date. (Note: A policy effective prior to a current assessment 

period may have no surcharge in effect on the policy term effective date.)

Each insurer shall submit a completed form TRIP 04A Direct Written Premium and Monthly 

Surcharge Calculation on a monthly basis, starting with the first month within the assessment 

period through November of the same calendar year, and a form TRIP 04B Direct Written Premium

and End of Year Calculation on an annual basis as of the last month of the calendar year

thereafter. Reports are due according to the following schedule:

1. For each month beginning in the first month of the assessment period through November

of the same year, reports are due on the last business day of the calendar month following 

the month for which premium is reported, and

2. Thereafter, annual reports are due on March 1. 

1.3 Lines of Business Subject to Terrorism Policy Surcharge

1.3.1 Commercial property and casualty lines of business subject to the Federal Terrorism Policy 

Surcharge means only the following lines of business from the NAIC Exhibit of Premiums and 

Losses (commonly known as Statutory Page 14): Line 1 - Fire; Line 2.1 - Allied Lines; Line 5.1 - 

Commercial Multiple Peril (non-liability portion); Line 5.2 - Commercial Multiple Peril (liability 

portion); Line 8 - Ocean Marine; Line 9 - Inland Marine; Line 16 - Workers' Compensation; Line 

17 - Other Liability; Line 18 - Products Liability; Line 22 - Aircraft (all perils); and Line 27 - Boiler 

and Machinery. Insurers that do not report to the NAIC should review section 1.5 of these 

instructions. Insurance coverage that is written on a dwelling policy form, but for which premium

is reported under the above lines of business (e.g., 1-4 family rental dwelling), is still included in 

the Program.
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1.3.2 Other lines of business from Statutory Page 14 are not subject to the Federal Terrorism Policy 

Surcharge. Insurance coverages specifically not subject to the surcharge are: Federal crop 

insurance issued or reinsured under the Federal Crop Insurance Act; any other type of crop or 

livestock insurance that is privately issued or reinsured (including crop insurance reported on 

either Line 2.1 - Allied Lines or Line 2.2 - Multiple Peril Crop); Line 3 - Farmowners Multiple 

Peril; Line 12 - Earthquake; Line 19.3 - Commercial Auto No-Fault (personal injury protection); 

Line 19.4 - Other Commercial Auto Liability; Line 21.2 - Commercial Auto Physical Damage; 

Line 24 - Surety; Line 26 - Burglary and Theft; Professional Liability insurance as defined in 31 

CFR 50.4(t)1; private mortgage insurance; title insurance; financial guaranty insurance when 

issued by a monoline financial guaranty insurance corporation; medical malpractice insurance; 

health or life insurance, including group life insurance; Federal flood insurance; and 

reinsurance or retrocessional reinsurance. Workers’ compensation insurance provided directly 

to qualified self-insureds is not reinsurance for purposes of the Program.

1.4 Direct Written Premium

Direct Written Premium means the premium as defined for inclusion in Column 1 of the Exhibit of 

Premiums and Losses of the NAIC Annual Statement or in an equivalent reporting requirement. 

The Federal Terrorism Policy Surcharge is not included in amounts reported as Direct Written 

Premium. 

Direct Written Premium to be reported on this form includes premium for all commercial property 

and casualty lines of insurance listed above in Section 1.3.1 issued by any insurer for insurance 

against all losses. Generally, premium amounts are to be included in the reporting on this form as 

they would be included in amounts reported to the NAIC or through an equivalent reporting 

requirement for the applicable surcharge period. Such premium amounts are to be broken out by 

policy year in order to facilitate surcharge calculations. For months in which premium is not 

reported to the NAIC or through an equivalent reporting requirement, the same definitions and 

process for completing this form shall apply. 

The premium reported under Step One A in Column 1A of this form is always cumulative for the 

applicable calendar year (i.e., January 1 through month-end of the reporting month). Column 1B is 

the Direct Written Premium for the same calendar year prior to the start of the assessment period

in cases where the assessment period does not encompass the entire calendar year. Columns 1B 

and 1C must sum to equal Column 1A. 

Some Direct Written Premium for lines of insurance listed above under section 1.3.1 and reported 

under Step One of the form may not be subject to the Federal Terrorism Policy Surcharge. Step 

Three will provide for the exclusion of such premium from the calculation of the Federal Terrorism 

Policy Surcharge amount due to Treasury. Specifically: 

1. Premium for personal property and casualty insurance coverage (coverage primarily 

designed to cover personal, family, or household risk exposures) is not subject to the 

Federal Terrorism Policy Surcharge, even if reported under a line of business otherwise 

included in the definition of property casualty insurance under TRIA.

2. Premium for any other insurance coverage that does not meet the definition of commercial 

property and casualty insurance is not subject to the Federal Terrorism Policy Surcharge. 

1 Professional liability insurance means insurance coverage for liability arising out of the performance of professional or business duties related 

to a specific occupation, with coverage being tailored to the needs of the specific occupation. Examples include abstracters, accountants, 

insurance adjusters, architects, engineers, insurance agents and brokers, lawyers, real estate agents, stockbrokers and veterinarians. For purposes 

of this definition, professional liability insurance does not include directors and officers liability insurance.
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TRIP 04A Instructions

Such types of insurance are listed in Section 1.3.2 and are not subject to the Federal 

Terrorism Policy Surcharge, even if reported under a line of business otherwise included in 

the definition of property and casualty insurance under TRIA.

3. In the cases of policies providing multiple insurance coverages where an insurer cannot 

identify the premium amount charged specifically for property and casualty insurance under 

the policy:

a. If an insurer has estimated that the portion of the premium amount charged for

coverages other than commercial property and casualty insurance is de minimis to the 

total premium for the policy, by Treasury regulation [31 CFR 50.94(c)(2)(i)] the insurer 

may impose and collect from the policyholder a surcharge amount based on the total 

Direct Written Premium for the policy. As such, no adjustment is necessary to the 

Direct Written Premium reported under Step One.

b. If an insurer has estimated that the portion of the premium amount charged for 

coverages other than commercial property and casualty insurance is not de minimis to

the total premium for the policy, by Treasury regulation [31 CFR 50.94(c)(2)(ii)] the 

insurer shall impose and collect from the policyholder a surcharge amount based 

on a reasonable estimate of the premium amount for the property and casualty 

insurance coverage under the policy. Therefore the portion of the premium charged for 

coverages other than commercial property and casualty insurance should be 

subtracted in Step Three.

1.5 Insurers that do not Report to the NAIC via Statutory Page 14. 

An insurer that does not report to the NAIC via Statutory Page 14 should only report Direct Written 

Premium in Step One or Step Two for classes or lines of business that include, at a minimum, the 

equivalent of one or more lines of business specified in Section 1.3.1. Thus, regardless of the 

description of the premium on another reporting form, all premium in Step One or Step Two must 

include the functional equivalent of a line of business as specified in Section 1.3.1. Insurers that 

may be required to extract Direct Written Premium information from other reporting forms for the 

purpose of this Program filing include alien surplus lines insurers, farm mutual insurers, county 

mutual insurers, captive insurers, and federally-approved insurers.

2 Step-by-Step Calculations 

2.1 Step One

2.1.1 Step One A

In Column 1A enter the sum of Direct Written Premium for the reporting month for all lines 

of business listed in section 1.3.1. When the reporting month coincides with a quarterly 

NAIC reporting period, the amount reported should be the cumulative, year-to-date Direct 

Written Premium included in the amount reported, or to be reported, to the NAIC for all 

lines of business included in the Program. If the assessment period does not encompass 

the entire calendar year, then in Column 1B enter the sum of the Direct Written Premium

for the same calendar year prior to the start of the assessment period. Otherwise, this 

column should be zero. 

Include premium for all lines not reported via Statutory Page 14, but reported on a separate 

state form as discussed in section 1.5. 
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Include all premium reported for any State of the United States, the District of Columbia, 

the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, 

American Samoa, Guam, each of the U.S. Virgin Islands, and any other territory or 

possession of the United States.

Include all surplus lines premium written and reported for any State of the United States, 

the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the 

Northern Mariana Islands, American Samoa, Guam, each of the U.S. Virgin Islands, and 

any other territory or possession of the United States.

2.1.2 Step One B

Columns 2 through 5 are to be used to report the premium by policy year that comprise the 

amount reported in Column 1C. The sum of Columns 2 through 5 should equal the 

premium in Column 1C. However, if necessary, additional columns (and sheets) may be 

added to complete the breakout of premium by policy year and to fully account for the entry 

in Column 1C.

Include premium for all lines not reported via Statutory Page 14, but reported on a separate 

state form as discussed in section 1.5. 

Include all premium reported for any State of the United States, the District of Columbia, 

the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, 

American Samoa, Guam, each of the U.S. Virgin Islands, and any other territory or 

possession of the United States.

Include all surplus lines premium written and reported for any State of the United States, 

the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the 

Northern Mariana Islands, American Samoa, Guam, each of the U.S. Virgin Islands, and 

any other territory or possession of the United States.

2.2 Step Two 

Enter the amount of Direct Written Premium included in Column 1C of Step One B that are for 

insurance coverage not to be included for the purposes of calculating the Federal Terrorism Policy 

Surcharge due to Treasury. See section 1.4 for guidance. Columns 2 through 5 are to be used to 

report the premium by policy year that comprise the amount reported in Column 1C. The sum of 

Columns 2 through 5 should equal the premium in Column 1C. However, if necessary, additional 

columns (and sheets) may be added to complete the breakout of premium by Policy Year and to 

fully account for the entry in Column 1C. 

Include premium for all lines not reported via Statutory Page 14, but reported on a separate state 

form as discussed in section 1.5. 

Include all premium reported for any State of the United States, the District of Columbia, the 

Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American 

Samoa, Guam, each of the U.S. Virgin Islands, and any other territory or possession of the United 

States.

Include all surplus lines premium written and reported for any State of the United States, the 

District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern 

Mariana Islands, American Samoa, Guam, each of the U.S. Virgin Islands, and any other territory 

or possession of the United States.
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2.3 Step Three

Enter the Step One B totals, and then subtract the Step Two premium to determine, for the 

applicable month, the insurer’s cumulative Direct Written Premium subject to the Federal Terrorism 

Policy Surcharge.

2.4 Step Four

Enter the Step Three totals and multiply by the applicable surcharge percentage(s) to determine the 

amount of Federal Terrorism Policy Surcharge for the applicable month. Note that Column 1C of 

Step Four is not computed, as different surcharge percentages may be applicable to the Direct 

Written Premium being reported for individual policy years. Add together the totals in Columns 2 

through 5 to determine the amount of Federal Terrorism Policy Surcharge for the applicable month.

2.5 Step Five

Enter the Federal Terrorism Policy Surcharge from Step Four and subtract any amounts which 

have already been remitted to Treasury for the month. The total is the amount of surcharge to be 

remitted to Treasury for the applicable month.