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2023 TRIP Data Call

Sample Fact Patterns (for reference only)

Scenario 1(a): Single Policy in Single State [Direct Earned Premium/Policy Count]

In 2022, a non-small insurer (Fifty States Insurance Group) writes a policy (valid from January 1, 2022 to December 31, 2022) to a policyholder (Widget Inc.) consisting of one commercial fire 

policy providing $1 million in property coverage, with a $100,000 deductible for Widget’s headquarters in California. The premium on the policy is $3,000, which includes terrorism coverage for 

a charge of $100. NBCR coverage is excluded from the policy.

Fifty States will fill out the following worksheets on the Policies and DEP (Juris.) tab: California
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Scenario 1(b): Single Policy in Single State [Exposure]

In 2022, a non-small insurer (Fifty States Insurance Group) writes a policy (valid from January 1, 2022 to December 31, 2022) to a policyholder (Widget Inc.) consisting of one (1) commercial fire 

policy providing $1 million in property coverage, with a $100,000 deductible for Widget’s new headquarters in California. The premium on the policy is $3,000, which includes terrorism 

coverage for a charge of $100. NBCR coverage is totally excluded from the policy.

Fifty States will fill out the following worksheets on the Exposure Basis (Juris.) tab: United States, California. Each worksheet will contain the same information because the information for the 

United States as a whole and California is the same. Because NBCR coverage is totally excluded from the policy, no limits are entered in Cell E6.
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Scenario 2(a): Single Policy (Multiple Lines) in One State [Direct Earned Premium/Policy Count] 

Widget Inc. purchases a commercial multi-peril policy (valid from January 1, 2022 to December 31, 2022) from Fifty States for its headquarters in California. The policy provides $1 million of 

property coverage (per occurrence) and $3 million of liability coverage (per occurrence), with a $75,000 per occurrence deductible. The premium on the policy is $78,000 ($3,000 for the 

property portion and $75,000 for the liability portion, which includes terrorism coverage for a charge of $1,600 ($100 for property and $1,500 for liability). NBCR coverage is not totally excluded 

from the policy.

Fifty States will fill out the following worksheets on the Policies and DEP (Juris.) tab: California. Because the commercial multi-peril policy provides coverage in two lines, it will be entered in the 

premium count (Column K) on both lines, even though that results in double counting of this single policy. On Line 21, this policy will only be entered once in the policy count field in that line. 
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Scenario 2(b): Single Policy (Multiple Lines) in One State [Exposure] 

Widget Inc. purchases a commercial multi-peril policy (valid from January 1, 2022 to December 31, 2022) from Fifty States for its headquarters in California. The policy provides $1 million of 

property coverage (per occurrence) and $3 million of liability coverage (per occurrence), with a $75,000 per occurrence deductible. The premium on the policy is $78,000 ($3,000 for the 

property portion and $75,000 for the liability portion, which includes terrorism coverage for a charge of $1,600 ($100 for property and $1,500 for liability). NBCR coverage is not totally excluded 

from the policy.

Fifty States will fill out the following worksheets on the Exposure Basis (Juris.) tab: United States, California (both will have the same content). Because the policy does not totally exclude NBCR 

coverage, the fully limits information for the policy will also appear in Column E and Column J. 
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Scenario 3(a): Single Policy (Multiple Lines) in Multiple States [Direct Earned Premium/Policy Count] 

Widget has two offices, one in Oregon and one in California, and purchases a commercial multi-peril policy (valid from January 1, 2022 to December 31, 2022) to cover both offices. The policy 

provides $1.5 million of property coverage and $4 million of liability coverage (per occurrence), with a $75,000 per occurrence deductible. The premium on the policy is $104,500 ($4,500 for 

the property portion and $100,000 for the liability portion, which includes terrorism coverage for a charge of $3,500 ($1,000 for property and $2,500 for liability). On its annual state filing, Fifty 

State allocates 60% of this premium to California and the remaining 40% to Oregon. NBCR coverage is excluded.

Fifty States will fill out the following worksheets on the Policies and DEP (Juris.) tab: California, Oregon. For the California worksheet, the allocation results in a property premium allocation of 

$2,700 (and a terrorism risk premium of $600) and a liability premium allocation of $60,000 (and a terrorism risk premium of $1,500).
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[continued from previous page]

For the Oregon worksheet, the allocation results in a property premium allocation of $1,800 (and a terrorism risk premium of $400) and a liability premium allocation of $40,000 (and a 

terrorism risk premium of $1,000).
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Scenario 3(b): Single Policy (Multiple Lines) in Multiple States [Exposure] 

Widget has two offices, one in Oregon and one in California, and purchases a commercial multi-peril policy (valid from January 1, 2022 to December 31, 2022) to cover both offices. The policy 

provides $1.5 million of property coverage and $4 million of liability coverage (per occurrence), with a $75,000 per occurrence deductible. The premium on the policy is $104,500 ($4,500 for 

the property portion and $100,000 for the liability portion, which includes terrorism coverage for a charge of $3,500 ($1,000 for property and $2,500 for liability). On its annual state filing, Fifty 

State allocates 60% of this premium to California and the remaining 40% to Oregon. NBCR coverage is excluded.

Fifty States will fill out the following worksheets on the Exposure Basis (Juris.) tab: United States, California, Oregon. For the United States worksheet, full policy limits (and the policyholder 

deductible) are entered for the policy. No limits are entered in Cells E8 and J9 because NBCR coverage is totally excluded.
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Scenario 4(a): Multiple Policies in Multiple States, including Policies not Allocable to a Particular Jurisdiction [Direct Earned Premium/Policy Count] 

Widget has two offices, one in Oregon and one in California, and purchases a commercial multi-peril policy (valid from January 1, 2022 to December 31, 2022) to cover both offices. The policy 

provides $1.5 million of property coverage and $4 million of liability coverage (per occurrence), with a $75,000 per occurrence deductible. The premium on the policy is $104,500 ($4,500 for 

the property portion and $100,000 for the liability portion), which includes terrorism coverage for a charge of $3,500 ($1,000 for property and $2,500 for liability). On its annual state filing, Fifty 

State allocates 60% of this premium to California and the remaining 40% to Oregon. NBCR coverage is excluded.

In addition, Widget has a contract to provide IT services at the U.S. Embassy in Ottawa and purchases a second CMP policy (valid from January 1, 2022 to December 31, 2022) to cover its 

equipment at the Embassy. The new policy for the equipment provides $100,000 in property coverage, with a $5,000 deductible. Fifty States charges Widget $1,500 for the new policy. Widget

does not obtain liability coverage for the new policy, and it declines to purchase terrorism risk coverage. 

Fifty States will fill out the following worksheets on the Policies and DEP (Juris.) tab: California, Oregon, Other/Not Subject to Allocation in a Particular Jurisdiction. For the California 

worksheet, the allocated premium figures for California (based upon the 60% allocation) are entered, along with a policy count of 1 for each line and a policy count of 1, total, in Cell C21.
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[continued from previous page]

For the Oregon worksheet, the allocated premium figures for Oregon (based upon the 40% allocation) are entered, along with a policy count of 1 for each line and a policy count of 1, total, in 

Cell C21.
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 [continued from previous page] 

For the Other/Not Subject to Allocation in a Particular Jurisdiction worksheet, the premium figures for the policy issued to cover property located at the U.S. Embassy in Ottawa are entered. 

Since terrorism risk insurance for this exposure was declined, the amounts are entered for premium and policy count in Columns E and I, with a policy count of 1 in Cell C21.
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Scenario 4(b): Multiple Policies in Multiple States, including Policies not Allocable to a Particular Jurisdiction [Exposure] 

Widget has two offices, one in Oregon and one in California, and purchases a commercial multi-peril policy (valid from January 1, 2022 to December 31, 2022) to cover both offices. The policy 

provides $1.5 million of property coverage and $4 million of liability coverage (per occurrence), with a $75,000 per occurrence deductible. The premium on the policy is $104,500 ($4,500 for 

the property portion and $100,000 for the liability portion, which includes terrorism coverage for a charge of $3,500 ($1,000 for property and $2,500 for liability). On its annual state filing, Fifty 

State allocates 60% of this premium to California and the remaining 40% to Oregon. NBCR coverage is excluded.

In addition, Widget has a contract to provide IT services at the U.S. Embassy in Ottawa, and purchases a second CMP policy (valid from January 1, 2022 to December 31, 2022) to cover its 

equipment at the Embassy. The new policy for the equipment provides $100,000 in property coverage, with a $5,000 deductible. Fifty States charges Widget $1,500 for the new policy. Widget

does not obtain liability coverage for the new policy, and it declines to purchase terrorism risk coverage. 

Fifty States will fill out the following worksheets on the Exposure Basis (Juris.) tab: United States, California, Oregon, Other/Not Subject to Allocation in a Particular Jurisdiction. On the United 

States worksheet, the limits and deductibles for the policy covering California and Oregon (reflecting that terrorism risk insurance was provided) are entered, and the limits and deductibles for 

the policy covering property at the U.S. Embassy in Ottawa (reflecting that terrorism risk insurance was declined) are entered. 
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[continued from previous page]

On the California worksheet, the limits and deductibles for the policy covering California and Oregon (reflecting that terrorism risk insurance was provided) are entered. The same limits will also 

be entered on the Oregon worksheet. 
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[continued from previous page]

On the Other/Not Subject to Allocation in a Particular Jurisdiction worksheet, the limits and deductibles for the policy covering property at the U.S. Embassy in Ottawa (reflecting that terrorism 

risk insurance was declined) are entered. 
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Scenario 5(a): Policy without Limits and Workers’ Compensation [Direct Earned Premium/Policy Count] 

In addition to Widget’s policies listed in Scenario 4 (two total), Fifty States sells two policies to a new client (Mountainside Air) that operates a small fleet of cargo planes (valued at $4.5 million)

providing air courier services between Los Angeles and San Francisco. The first policy provides for $1 million in liability coverage per occurrence (no sublimit), and property coverage with no 

limit. Fifty States charges a premium of $2,500 for this policy ($1,500 for liability and $1,000 for property), with a deductible of $15,000. Terrorism risk coverage is provided for no charge. The 

second policy provides workers’ compensation coverage for Mountainside employees (total payroll of $500,000) for a premium of $10,000. Terrorism risk coverage is provided at a premium of 

$500. Both policies are effective January 1, 2022 to December 31, 2022. The first policy excludes NBCR coverage (and the second workers’ compensation policy does not exclude NBCR 

coverage, pursuant to state law).

Fifty States will fill out the following worksheets on the Policies and DEP (Juris.) tab: California, Oregon, Other/Not Subject to Allocation in a Particular Jurisdiction. On the California 

worksheet, the same premium figures and policy count as entered in Example 4(a) for California are entered, as well as premium and policy count information for the Aircraft policy. No 

information is entered for the workers’ compensation policy because that will be provided by NCCI, California WCIRB, and/or the New York CIRB. 
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 [continued from previous page]

On the Oregon worksheet, the same premium figures and policy count as entered in Example 4(a) for Oregon are entered.
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[continued from previous page]

On the Other/Not Subject to Allocation in a Particular Jurisdiction worksheet, the same premium figures and policy count as entered in Example 4(a) in connection with the policy issued to cover 

property at the U.S. Embassy in Ottawa are entered.
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Scenario 5(b): Policy without Limits and Workers’ Compensation [Exposure] 

In addition to Widget’s policies listed in Scenario 4 (two total), Fifty States sells two policies to a new client (Mountainside Air) that operates a small fleet of cargo planes (valued at $4.5 million) 

providing air courier services between Los Angeles and San Francisco. The first policy provides for $1 million in liability coverage per occurrence (no sublimit), and property coverage with no 

limit. Fifty States charges a premium of $2,500 for this policy ($1,500 for liability and $1,000 for property), with a deductible of $15,000. Terrorism risk coverage is provided for no charge. The 

second policy provides workers’ compensation coverage for Mountainside employees (total payroll of $500,000) for a premium of $10,000. Terrorism risk coverage is provided at a premium of 

$500. Both policies are effective January 1, 2022 to December 31, 2022. The first policy excludes NBCR coverage (and the second workers’ compensation policy does not exclude NBCR 

coverage, pursuant to state law).

Fifty States will fill out the following worksheets on the Exposure Basis (Juris.) tab: United States, California, Oregon, Other/Not Subject to Allocation in a Particular Jurisdiction. On the United 

States worksheet, the same limits and deductible figures from Example 4(b) for the policies covering California and Oregon and the property at U.S. Embassy in Ottawa are entered. In addition, 

for the Aircraft policy a figure of $4.5 million (the value of the covered aircraft) is entered as the property exposure and the liability limit is entered. The payroll information for the workers’ 

compensation policy will be entered by NCCI, the California WCIRB, and/or the New York CIRB. 
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[continued from previous page]

On the California worksheet, the same limits and deductible figures from Example 4(b) for the policy covering California are entered. In addition, for the Aircraft policy a figure of $4.5 million 

(the value of the covered aircraft) is entered as the property exposure and the liability limit and deductible is entered. The payroll information for the workers’ compensation policy will be 

entered by NCCI, the California WCIRB, and/or the New York CIRB. 
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[continued from previous page]

On the Oregon worksheet, the same limits and deductible figures from Example 4(b) for the policy covering Oregon are entered. 
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[continued from previous page]

On the Other/Not Subject to Allocation in a Particular Jurisdiction, the same limits and deductible figures from Example 4(b) for the policy covering the property at U.S. Embassy in Ottawa are 

entered.
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Scenario 6: Modeled Loss Question

Fifty States Insurance Group is a non-small insurer operating in multiple states, including Nevada. Relevant information for calculating the modeled loss scenario for Fifty States is as follows: 

• Fifty States’ 2021 TRIP-eligible DEP was $1 billion. 

• Fifty States uses modeling to determine that on September 3, 2022 (the date of the event), its policyholders would suffer a gross total projected loss of $400 million under the scenario 

described. 

• Fifty States determines that of this total loss ($400 million), policyholders would owe $5.0 million in deductible/retention payments.

• Fifty States has purchased reinsurance to cover 20% of Fifty States’ losses up to its TRIP deductible following Treasury certification of an event as an act of terrorism.

• Fifty States also holds a second reinsurance contract that covers 75% of Fifty States’ losses in the co-pay layer, in excess of $20 million, following Treasury certification of an act of terrorism. 

The limit on this contract is $20 million. 

The modeled loss question would be completed as follows:

The explanation for the values that should be entered is as follows:

Line 30: Total Projected Loss – Calculate total loss anticipated for the event under all policies providing coverage for insured losses under TRIP; in this case, $400 million. The field will 

automatically populate with the sum of Lines 31-36 once those are calculated in light of the Total Projected Loss.

Line 31: Deductible/Retention of Insured under Policies issued by Group or Company – Total of all policyholder deductible/retention amounts under policies with insured losses. Do not enter 

information associated with policyholder obligations under policies which do not cover insured losses under TRIP

Line 32: Net Loss to Group or Company within TRIP Deductible – The insurer’s deductible is 20% of $1 billion, or $200 million, and it has reinsurance for 20% of this amount, or $40 million. The 

balance -- $160 million – should be entered on Line 32.

Line 33: Private Reinsurance Recovery within the Deductible Layer – Enter the reinsurance recovery amount of $40 million. 
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[continued from previous page] 

Line 34: Claim under TRIP – Calculated by taking the Total Projected Loss of $400 million, minus the deductible/retention amount of policyholders of $5 million, minus the TRIP Deductible of 

$200 million, times 80% (the Federal Share amount in 2022) = $400,000,000 – ($5,000,000 + $200,000,000) = $195,000,000 x .80 = $156,000,000. 

Line 35: Net Loss to Group or Company within Co-Pay Layer – Calculated by taking the total policyholder obligation within the Co-Pay layer, or 20% of $195,000,000 = $39,000,000, less 

reinsurance recoveries. Applicable reinsurance attaches at $20,000,000, at a 75% share, resulting in a reinsurance recovery of $39,000,000 - $20,000,000 = $19,000,000; 75% of $19,000,000 = 

$14,250,000. The Co-Pay obligation of the insurer is thus $39,000,000 - $14,250,000 = $24,750,000. 

Line 36: Private Reinsurance Recovery within Co-Pay Layer: Enter the reinsurance recovery amount for the Co-Pay Layer of $14,250,000.