By Tad Philipp, Managing Director, Moody's Investors Service

Five months after its passage, the Terrorism Risk Insurance Act (TRIA) has begun to have its intended effect on the commercial mortgage-backed securities (CMBS) market. Rates for terrorism coverage have clearly abated from the sky-high levels of a year ago. Additionally, "per occurrence" language has returned versus the stingier aggregate limits that affected many policies immediately after 9/11. Coverage for domestic terrorism is beginning to reappear as well, at reasonable costs in some cases and for no cost in others.

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