Which type of policy cannot be covered under TRIP?

The correct choice is that dwelling policies cannot be covered under the Terrorism Risk Insurance Program (TRIP). TRIP was established to provide federal backing for insurance claims related to acts of terrorism, but it specifically excludes certain types of insurance coverage.

Dwelling policies, which usually cover properties and structures used as residences, fall into a category that is not eligible for this type of federal program. The focus of TRIP is primarily on commercial properties and liability insurance, as these are the sectors most likely to be significantly impacted by terrorism-related incidents.

In contrast, auto policies, commercial policies, and workers' compensation policies are typically eligible for TRIP coverage. Auto policies cover vehicles and can be linked to commercial use, commercial policies cover a range of commercial insurance needs, and workers' compensation policies address liabilities related to employee injuries perhaps in the event of a terrorist attack at the workplace. Therefore, because dwelling policies do not align with the objectives of TRIP, they are excluded from coverage under this program.