Justia Regulation Tracker

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[Federal Register: July 7, 2006 (Volume 71, Number 130)]
[Notices]               
[Page 38604-38605]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07jy06-38]                         

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DEPARTMENT OF AGRICULTURE

Risk Management Agency

 
Notice of Request for Revision of a Currently Approved Collection

AGENCY: Risk Management Agency, USDA.

[[Page 38605]]

ACTION: Revision of a currently approved collection; comment request.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this 
notice announces a public comment period on the information collection 
requests (ICRs) associated with the Standard Reinsurance Agreement and 
Appendices II and IV administered by Federal Crop Insurance Corporation 
(FCIC). Appendix I and III are excluded because Appendix I is the 
program Integrity Statement which does not contain any document 
submission requirements, and Appendix III contains the Data Acceptance 
System requirements.

DATES: Written comments on this notice will be accepted until close of 
business, September 5, 2006.

ADDRESSES: Interested persons are invited to submit written comments to 
Dave Miller, Reinsurance Services Division, Federal Crop Insurance 
Corporation, United States Department of Agriculture (USDA), 1400 
Independence Avenue, SW., Stop 0804, Washington, DC 20250. Written 
comments may also be submitted electronically to: 
dave.miller@rma.usda.gov.

FOR FURTHER INFORMATION CONTACT: Dave Miller, Senior Reinsurance 
Analyst, Risk Management Agency, at the address listed above, telephone 
(202) 720-9830.

SUPPLEMENTARY INFORMATION:
    Title: Standard Reinsurance Agreement; Appendices II and IV.
    OMB Number: 0563-0069.
    Type of Request: Revised and new Information Collection.
    Abstract: The Federal Crop Insurance Act (Act), Title 7 U.S.C. 
Chapter 36, Section 1508(k), authorizes the FCIC to provide reinsurance 
to insurers approved by FCIC that insure producers of any agricultural 
commodity under one or more plans acceptable to FCIC. The Act also 
states that the reinsurance shall be provided on such terms and 
conditions as the Board may determine to be consistent with subsections 
(b) and (c) of this section and sound reinsurance principles.
    FCIC executes the same form of reinsurance agreement, called the 
Standard Reinsurance Agreement (SRA), with sixteen participating 
insurers approved for the 2006 reinsurance year. Appendix II of the 
SRA, the Plan of Operations (Plan), sets forth the information the 
insurer is required to file with RMA for the initial and each 
subsequent reinsurance year. The Plan's information enables RMA to 
evaluate the insurer's financial and operational capability to deliver 
the crop insurance program in accordance with the Act. Estimated 
premiums by fund by state, and retained percentages along with current 
policyholders surplus are used in calculations to determine whether to 
approve the insurer's requested maximum reinsurable premium volume for 
the reinsurance year per 7 CFR part 400 subpart L. This information has 
a direct effect upon the insurer's amount of retained premium and 
associated liability and is required to calculate the insurer's 
underwriting gain or loss.
    Appendix IV is incorporated into the SRA and establishes the 
minimum annual agent and loss adjuster training requirements, and 
quality control review procedures and performance standards required of 
all insurers who deliver any policy reinsured under the Act. In order 
to evaluate their compliance with the terms of the SRA, FCIC requires 
each insurer to submit, for each reinsurance year, an Annual Summary 
Report to FCIC containing details of the results of their completed 
reviews.
    Since the currently approved information collection package does 
not account for new information collections implemented in the 2005 
reinsurance year, we are asking the Office of Management and Budget 
(OMB) to approve this revised information collection activity for 3 
years.
    The purpose of this notice is to solicit comments from the public 
concerning this information collection activity as associated with the 
SRA in effect for the 2005 and subsequent reinsurance years. These 
comments will help us:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information has practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, through use, as appropriate, of automated, 
electronic, mechanical, and other collection technologies, e.g., 
permitting electronic submission of responses.
    The SRA includes Conflict of Interest data collection, which in 
addition to the insurance companies reinsured by FCIC encompasses the 
insurance companies' employees and their contracted agents and loss 
adjusters. The estimate below shows the burden that will be placed upon 
the following affected entities.
    Estimate of Burden: The public reporting burden for the collection 
Appendix II information is estimated to average 279 hours per response.
    Respondents/Affected Entities: Insurance companies reinsured by 
FCIC.
    Estimated annual number of respondents: 16.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 16.
    Estimated total annual burden on respondents (hours): 4,464.
    Estimate of Burden: The public reporting burden for the collection 
of Conflict of Interest information is estimated to average 1 hour per 
response.
    Respondents/Affected Entities: Approved Insurance Provider's 
employees and their contracted agents and loss adjusters.
    Estimated annual number of respondents: 20,800.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 20,800.
    Estimated total annual burden on respondents (hours): 20,800.
    Estimate of Burden: The public reporting burden for the agent and 
loss adjuster training requirements is estimated to average 6 hours per 
response.
    Respondents/Affected Entities: Agent and Loss adjusters 
participating in the crop insurance program (training).
    Estimated annual number of respondents: 18,500.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 18,500.
    Estimated total annual burden on respondents (hours): 111,000.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments will also become a matter of 
public record.
    Total burden for this paperwork package will be 136,264.

    Signed in Washington, DC, on June 30, 2006.
Eldon Gould,
Manager, Federal Crop Insurance Corporation.
 [FR Doc. E6-10607 Filed 7-6-06; 8:45 am]

BILLING CODE 3410-08-P

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