2017 Data Collection Under the Terrorism Risk Insurance Program, 20420-20422 [2017-08716]
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20420
Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices
Authority: 5 U.S.C. 610; E.O. 13563, 76 FR
3821, Jan. 21 2011; E.O. 12866, 58 FR 51735,
Oct. 4, 1993.
SUPPLEMENTARY INFORMATION:
By Order of the Executive Director.
Dated: April 25, 2017.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
I. Background
[FR Doc. 2017–08685 Filed 4–28–17; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF TREASURY
2017 Data Collection Under the
Terrorism Risk Insurance Program
Departmental Offices,
Department of Treasury.
ACTION: Notice.
AGENCY:
The Terrorism Risk Insurance
Act requires the Secretary of the
Treasury to collect, from insurers that
participate in the Terrorism Risk
Insurance Program, information
regarding insurance coverage for
terrorism losses. The information is to
be used by the Secretary in connection
with reports analyzing various aspects
of the Program. Participating insurers
are directed to report information
identified in a series of forms approved
by the Office of Management and
Budget through a web portal that has
been established for that purpose.
Participating insurers are required to
respond to this data call, subject to
certain exceptions identified in this
Notice.
DATES: Certain data must be submitted
not later than May 15, 2017, with the
balance of any remaining information to
be provided by October 1, 2017.
ADDRESSES: Participating insurers will
submit the identified data after
registration at a web portal that has been
established for this data collection. A
link to the Web site where participating
insurers can commence the registration
process can be found at https://
www.treasury.gov/resource-center/finmkts/Pages/program.aspx.
FOR FURTHER INFORMATION CONTACT:
Richard Ifft, Senior Insurance
Regulatory Policy Analyst, Federal
Insurance Office, Room 1410,
Department of Treasury, 1500
Pennsylvania Avenue NW., Washington,
DC 20220, at (202) 622–2922 (this is not
a toll-free number), Kevin Meehan,
Senior Insurance Regulatory Policy
Analyst, Federal Insurance Office, 202–
622–7009 (not a toll free number), or
Lindsey Baldwin, Senior Policy Analyst,
Federal Insurance Office, 202–622–3220
(this is not a toll-free number). Persons
who have difficulty hearing or speaking
may access these numbers via TTY by
srobinson on DSK5SPTVN1PROD with NOTICES
SUMMARY:
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calling the toll-free Federal Relay
Service at (800) 877–8339.
Congress enacted the Terrorism Risk
Insurance Act of 2002 (TRIA) 1 based, in
part, upon its recognition that
widespread unavailability of terrorism
risk insurance ‘‘could seriously hamper
ongoing and planned construction,
property acquisition, and other business
projects, generate a dramatic increase in
rents, and otherwise suppress economic
activity.’’ 2 TRIA requires insurers to
make coverage available for certain lines
of commercial property and casualty
insurance.3 To assist insurers with the
financial exposure resulting from this
required offer of coverage, TRIA
established the Terrorism Risk
Insurance Program (TRIP or Program),
under which certain losses resulting
from an ‘‘act of terrorism’’ (as defined by
TRIA) are eligible for reimbursement
through the Program. The Program is
administered in the Department of
Treasury (Treasury) by the Secretary of
the Treasury (Secretary) with the
assistance of the Federal Insurance
Office.4
TRIA originally authorized the
Program for a three-year period ending
December 31, 2005. The Program has
since been reauthorized three times,
most recently in the Terrorism Risk
Insurance Program Reauthorization Act
of 2015 (2015 Reauthorization Act),5
which extended the Program until
December 31, 2020. Among other
reforms and changes, the 2015
Reauthorization Act requires insurers
participating in the Program to submit
to the Secretary, beginning in calendar
year 2016, ‘‘such information regarding
insurance coverage for terrorism losses
of such insurers as the Secretary
considers appropriate to analyze the
effectiveness of the Program . . . .’’
This information and data includes
information regarding: (1) Lines of
insurance with exposure to such losses;
(2) premiums earned on such coverage;
(3) geographical location of exposures;
(4) pricing of such coverage; (5) the takeup rate for such coverage; (6) the
amount of private reinsurance for acts of
terrorism purchased; and (7) such other
1 15 U.S.C. 6701 note. Because the provisions of
TRIA, as amended, appear in a note of the United
States Code, references to the provisions of TRIA
are identified by the sections of the law (e.g., ‘‘TRIA
section 102(1) (definition of an ‘act of terrorism’)’’).
2 TRIA section 101(a)(5).
3 See TRIA section 103(c).
4 31 U.S.C. 313(c)(1)(D).
5 Pub. L. 114–1, 129 Stat. 3.
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matters as the Secretary considers
appropriate.6
Treasury conducted a voluntary data
call in 2016, to avoid inadvertently
imposing an unanticipated level of
burden on participating insurers. In that
year, before implementing regulations
were effective, Treasury utilized a single
reporting template approved by the
Office of Management and Budget
(OMB) on an emergency basis without a
formal public notice and comment
period. Data collected from the insurers
that elected to respond to this request
formed the basis for Treasury’s first
report under the 2015 Reauthorization
Act addressing the effectiveness of the
Program.7
On December 21, 2016, Treasury
issued Final Rules concerning, among
other things, its data collection
authorities under the Program.8 On
December 27, 2016, Treasury published
the data collection forms that it
proposed to use for the 2017 data call,
and invited the public to provide
comments concerning those proposed
forms.9 Treasury received seven
comments concerning the forms.10 In
response, and as discussed further
below, Treasury has made a number of
modifications to the forms and has also
in certain ways modified the manner in
which Treasury will collect the
identified data. OMB has approved the
use of these forms under Control
Number 1505–0257.
II. Data Collection Forms and
Procedures
The collection templates proposed for
use in calendar year 2017 are based
upon the form created for use in
calendar year 2016, although certain
changes were made based upon
experience derived from the 2016
voluntary data call. The principal
6 TRIA section 104(h)(1) (2015 Reauthorization
Act, Section 111).
7 See Department of Treasury, Report on the
Overall Effectiveness of the Terrorism Risk
Insurance Program (June 2016), available at https://
www.treasury.gov/initiatives/fio/reports-andnotices/Documents/2016_TRIP_Effectiveness_
%20Report_FINAL.pdf.
8 81 FR 93756 (Dec. 21, 2016); see 31 CFR 50.50–
50.54.
9 81 FR 95310 (Dec. 27, 2016).
10 Treasury received comments from the
American Insurance Association (AIA), the Property
Casualty Insurers Association of American (PCIAA),
the National Association of Mutual Insurance
Companies (NAMIC), the International
Underwriting Association of London (IUA), Lloyd’s
of London (Lloyd’s), Signal Mutual Indemnity
Association Ltd. (Signal), and an individual, James
Murray (Murray). The comments are available at
https://www.regulations.gov/docketBrowser?rpp=
25&so=DESC&sb=commentDueDate&po=
0&D=TREAS-TRIP-2017-0002. References to these
comments are incorporated below where
appropriate.
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Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices
srobinson on DSK5SPTVN1PROD with NOTICES
change was that Treasury developed
four separate templates for use,
depending upon the type or size of
insurer providing information. Each
insurer group (or individual company if
not affiliated with a group) will fill out
the template identified ‘‘Insurer (NonSmall) Groups or Companies,’’ unless
the insurer meets the definition of a
small insurer, captive insurer, or alien
surplus lines insurer as set forth in 31
CFR 50.4. These insurers are required to
complete different forms that are more
specifically tailored to their operations.
Each form is accompanied by a
separate ‘‘data dictionary’’ applicable to
the form, which contains specific
instructions to complete each data
element. In its initial notice seeking
public comment, Treasury set forth the
general instructions concerning what
type of form each participating insurer
must complete.11 These instructions
remain the same; however, Treasury is
now clarifying that insurers that
participate in the Program because they
have been authorized by the Federal
Government to provide insurance for
various purposes 12 should complete the
11 See 81 FR 95310 (Dec. 27, 2016). In general,
small insurers (31 CFR 50.4(z)) are insurers who for
purposes of the 2017 data collection, which is
otherwise requesting information from calendar
year 2016, had 2015 policyholder surplus and 2015
direct earned premium of less than $600,000,000 (or
five times the 2016 Program Trigger of
$120,000,000). In addition, a small insurer with less
than $10,000,000 in TRIP-eligible lines direct
earned premium in calendar year 2016 is not
required to provide any data. Captive insurers (31
CFR 50.4(g)) are insurers licensed under the captive
insurance laws or regulations of any state, and are
all subject to the same captive insurer template
regardless of size. However, to the extent a captive
insurer writes policies in TRIP-eligible lines of
insurance, but does not actually provide its
insureds with any terrorism risk insurance subject
to the Program, the captive insurer is not required
to provide data. Alien surplus lines insurers (31
CFR 50.4(o)(1)(i)(B)) are insurers not licensed or
admitted to engage in the business of providing
primary or excess insurance in any state, but that
are eligible surplus line insurers listed on the NAIC
Quarterly Listing of Alien Insurers. To the extent an
alien surplus lines insurer is part of a larger group
that is subject to reporting under either the ‘‘Insurer
(Non-Small) Groups or Companies’’ or ‘‘Small
Insurers’’ template, the information for that alien
surplus lines insurer should be reported as part of
the larger group, using the proper template. The
‘‘Alien Surplus Lines’’ template is to be used by any
other alien surplus lines insurer, regardless of size,
that is not part of a larger group. Such alien surplus
lines insurers must report, at least for calendar year
2017, even if they fall within the $10,000,000
premium threshold otherwise required for small
insurers to report.
12 See TRIA, § 102(6)(A)(iii); 31 CFR 50.4(o)(1)(C).
The Alien Surplus Lines template should also be
used by Federally-approved insurers subject to the
Program that are approved or accepted for the
purpose of offering property and casualty insurance
by a Federal agency in connection with maritime,
energy, or aviation activity, but only to the extent
of such Federal approval of property and casualty
insurance coverage offered by the insurer in
connection with maritime, energy, or aviation
activity.
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alien surplus lines template. Treasury
has provided further specific
instructions in the associated data
dictionary concerning completion of the
reporting template by these insurers.
Commenters made a number of
suggestions concerning the manner in
which data should be collected and
provided specific suggestions
concerning individual data elements
and the instructions concerning those
elements. Several commenters 13
suggested that Treasury could collect
certain workers’ compensation
insurance elements through the
National Council on Compensation
Insurance (NCCI) and other rating
bureaus that collect workers’
compensation insurance data in order to
fulfill the obligation of participating
insurers to report such information. In
response to these comments, Treasury
has arranged with NCCI and the
California Workers’ Compensation
Insurance Rating Bureau (California
WCIRB) to provide (either directly or
through other workers’ compensation
rating bureaus) the workers’
compensation insurance elements of the
data call relating to premium and
payroll information, including as
allocated to specific geographic areas
and across industry groups, with the
exception of private reinsurance
arrangements associated with workers’
compensation insurance. This will
eliminate the need of insurers to report
this information separately, and the data
aggregator will provide such insurers
with reporting templates that do not
require completion of this workers’
compensation data. Instead, that
information will be provided by NCCI
and/or the California WCIRB and then
merged into the information provided
directly by the reporting insurers.
Several commenters requested that
Treasury delay the data collection
deadline. In support of this request,
commenters cited the fact that this is the
first year of mandatory collection, and
that a delayed reporting date would
allow insurers more time to verify and
compile information, leading to more
accurate submissions.14 Commenters
supported the permissibility of this
position by noting that Treasury’s report
in 2017 focuses upon small insurers,
and that information required from
other insurers would not be relevant to
that report such that it could be reported
at a later date.15
13 See AIA Comments at 4; PCIAA Comments at
2; NAMIC Comments at 1.
14 See Lloyd’s Comments at 1; IUA Comments at
1–2.
15 See Lloyd’s Comments at 1; IUA Comments at
1–2; Murray Comments at 1. One commenter
suggested that a later date would be consistent with
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20421
Treasury selected the data reporting
deadline of May 15 in the Program
Rules in response to comments
indicating that the initial proposed date
of March 1 interfered with pre-existing
state insurance data production
requirements. Treasury chose May 15 as
the latest date to obtain the necessary
data and still reasonably complete its
statutory reporting obligations, which
are due each year on June 30.16 Even
though Treasury’s 2017 report will be
focusing upon small insurers,
information provided by other insurers
will be relevant to put into context the
participation of small insurers in the
terrorism risk insurance marketplace.
To address the concerns raised by
commenters while still meeting its
statutory obligations, Treasury will, for
2017 only, limit the amount of data that
needs to be provided by May 15, 2017
by all insurers to general registration,
premium and policy counts, policy
exposures, and reinsurance (the
information that is reportable by small
insurers).17 Additional information (for
package or multi-line policies,
standalone terrorism insurance,
policyholder industry codes, and
geographic exposures) must also be
submitted by insurers other than small
insurers, and may be submitted with the
initial submission by May 15. If this
additional information is not provided
with the initial submission, it must be
provided separately no later than
October 1, 2017. Because all insurers
will have taken the necessary steps to
compile data in 2017, Treasury will not
grant extensions of the May 15 deadline
in future years.
One commenter suggested that the
reporting forms were not geared to
reporting by Federally-approved
insurers that are subject to the
Program.18 In response, and as noted
above, Treasury has modified the
instructions to provide further guidance
as to how such insurers should respond
to the 2017 data call, and will consider
the development of a separate form for
such insurers for future collections.
Several commenters suggested the
establishment of a telephone ‘‘helpline’’
a reporting date of October 1 that has been
established for the reporting to state regulators of
certain terrorism risk insurance information by
alien surplus lines insurers. See Lloyd’s Comments
at 1; IUA Comments at 1.
16 See 81 FR 93756, 93761 (Dec. 21, 2016).
17 The worksheets for non-small insurers, alien
surplus lines insurers, and captive insurers that
cover the information that is also reported by small
insurers differ from the small insurer worksheets in
minor ways. Reporting insurers will still complete
the relevant worksheets of their own data reporting
template, even though it will differ somewhat from
the small insurer template.
18 See Signal Comments at 1.
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Federal Register / Vol. 82, No. 82 / Monday, May 1, 2017 / Notices
and the hosting of a public webinar to
assist reporting insurers that have
questions concerning the data collection
requirements.19 Treasury (through its
data aggregator) will establish such a
helpline, and will also host a public
webinar concerning the process to assist
reporting insurers in responding to the
proposed collection. Details concerning
participation in the webinar will be
made available on Treasury’s Web site
at https://www.treasury.gov/resourcecenter/fin-mkts/Pages/program.aspx.
Treasury personnel, as identified above,
may also be contacted directly in
connection with questions and guidance
for completion of the data collection
templates.
Treasury also received a number of
written comments addressing technical
changes or questions concerning the
reporting forms. In response, Treasury
has modified the instructions in a
number of ways to clarify the
information sought, and in some cases
to reduce the burden of reporting that
might otherwise be presented by the
collection as originally proposed (for
example, by adding fields to allow
insurers to report unallocated values
that have not been specifically coded
within the insurer’s existing systems).20
III. Data Call
Treasury, through an insurance
statistical aggregator, has established the
web portal identified above, through
which insurers will be able to submit
the identified data. Reporting insurers
should visit this link in order to register
for the 2017 data collection. Copies of
the collection forms (image files only)
are also available at the link identified
above; however, reporting insurers will
obtain the fillable forms that they will
use for reporting directly from the data
aggregator once they register for the data
collection process. As noted above,
reporting insurers are required to submit
completed data forms containing data
related to premium and policy counts,
policy exposures, and reinsurance no
later than May 15, 2017; the remaining
data requested must be submitted no
later than October 1, 2017. The
insurance statistical aggregator will
provide instructions on how to submit
completed forms, and will also be
available to answer questions related to
the completion of the forms.
All information submitted via the web
portal is subject to the confidentiality
and data protection provisions of TRIA
and the Program Rules, as well as to
section 552 of title 5, United States
Code, including any exceptions
thereunder. In accordance with the
Paperwork Reduction Act, (44 U.S.C
3501 et seq.), the information collected
through the web portal has been
approved by OMB under Control
srobinson on DSK5SPTVN1PROD with NOTICES
Subcommittee
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Dated: April 25, 2017.
Brian J. Peretti,
Director, Office of Critical Infrastructure
Protection and Compliance Policy.
[FR Doc. 2017–08716 Filed 4–28–17; 8:45 am]
BILLING CODE P
DEPARTMENT OF VETERANS
AFFAIRS
Joint Biomedical Laboratory Research
and Development and Clinical Science
Research and Development Services
Scientific Merit Review Board
Amended; Notice of Meetings
The Department of Veterans Affairs
(VA) gives notice under Public Law 92–
463; Title 5 U.S.C. App. 2 (Federal
Advisory Committee Act) that the
subcommittees of the Joint Biomedical
Laboratory Research and Development
and Clinical Science Research and
Development Services Scientific Merit
Review Board (JBL/CS SMRB) will meet
from 8 a.m. to 5 p.m. on the dates
indicated below (unless otherwise
listed):
Date
Infectious Diseases—B ....................................................
Nephrology .......................................................................
Hematology ......................................................................
Oncology—A/D .................................................................
Cellular & Molecular Medicine .........................................
Endocrinology—B .............................................................
Neurobiology—C ..............................................................
Oncology—B ....................................................................
Surgery .............................................................................
Cardiovascular Studies—A ..............................................
Infectious Diseases—A ....................................................
Oncology—C ....................................................................
Immunology & Dermatology—A .......................................
Neurobiology—B ..............................................................
Gulf War Research ...........................................................
Pulmonary Medicine .........................................................
Endocrinology—A .............................................................
Neurobiology—A ..............................................................
Neurobiology—E ..............................................................
Gastroenterology ..............................................................
Mental Health & Behavioral Sciences—A ........................
Neurobiology—F ...............................................................
Oncology—E ....................................................................
Cardiovascular Studies—B ..............................................
Mental Health & Behavioral Sciences—B ........................
Epidemiology ....................................................................
Neurobiology—D ..............................................................
Special Emphasis Panel on Million Veteran Prog. Proj ...
Number 1505–0257. An agency may not
conduct or sponsor and a person is not
required to respond to a collection of
information unless it displays a valid
OMB control number.
19 See
AIA Comments at 4; PCIAA Comments at
2.
20 Other examples of such technical changes
include manner in which policy count information
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Location
Hilton Crystal City—Reagan
Hilton Crystal City—Reagan
Hyatt Regency Washington.
Hyatt Regency Washington.
Hilton Crystal City—Reagan
Hilton Crystal City—Reagan
Hilton Crystal City—Reagan
Hilton Crystal City—Reagan
Hilton Crystal City—Reagan
Hilton Crystal City—Reagan
* VA Central Office.
Hilton Crystal City—Reagan
Hilton Crystal City—Reagan
Hyatt Regency Washington.
* VA Central Office.
Hyatt Regency Washington.
Hyatt Regency Washington.
Hyatt Regency Washington.
Hyatt Regency Washington.
Hilton Crystal City—Reagan
Hilton Crystal City—Reagan
* VA Central Office.
* VA Central Office.
Hyatt Regency Washington.
Hyatt Regency Washington.
* VA Central Office.
Hyatt Regency Washington.
Hilton Crystal City—Reagan
should be entered in connection with multiple line
and multiple jurisdiction situations (see AIA
Comments at 4–5), confirmation as to how property
insurance limits should be entered in specific
PO 00000
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National Airport.
National Airport.
National
National
National
National
National
National
Airport.
Airport.
Airport.
Airport.
Airport.
Airport.
National Airport.
National Airport.
National Airport.
National Airport.
National Airport.
situations (see AIA Comments at 6), and
inconsistency in certain of the template headings
`
vis-a-vis the instructional materials (see AIA
Comments at 5).
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]]>Agencies
[Federal Register Volume 82, Number 82 (Monday, May 1, 2017)]
[Notices]
[Pages 20420-20422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08716]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF TREASURY
2017 Data Collection Under the Terrorism Risk Insurance Program
AGENCY: Departmental Offices, Department of Treasury.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Terrorism Risk Insurance Act requires the Secretary of the
Treasury to collect, from insurers that participate in the Terrorism
Risk Insurance Program, information regarding insurance coverage for
terrorism losses. The information is to be used by the Secretary in
connection with reports analyzing various aspects of the Program.
Participating insurers are directed to report information identified in
a series of forms approved by the Office of Management and Budget
through a web portal that has been established for that purpose.
Participating insurers are required to respond to this data call,
subject to certain exceptions identified in this Notice.
DATES: Certain data must be submitted not later than May 15, 2017, with
the balance of any remaining information to be provided by October 1,
2017.
ADDRESSES: Participating insurers will submit the identified data after
registration at a web portal that has been established for this data
collection. A link to the Web site where participating insurers can
commence the registration process can be found at https://www.treasury.gov/resource-center/fin-mkts/Pages/program.aspx.
FOR FURTHER INFORMATION CONTACT: Richard Ifft, Senior Insurance
Regulatory Policy Analyst, Federal Insurance Office, Room 1410,
Department of Treasury, 1500 Pennsylvania Avenue NW., Washington, DC
20220, at (202) 622-2922 (this is not a toll-free number), Kevin
Meehan, Senior Insurance Regulatory Policy Analyst, Federal Insurance
Office, 202-622-7009 (not a toll free number), or Lindsey Baldwin,
Senior Policy Analyst, Federal Insurance Office, 202-622-3220 (this is
not a toll-free number). Persons who have difficulty hearing or
speaking may access these numbers via TTY by calling the toll-free
Federal Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
Congress enacted the Terrorism Risk Insurance Act of 2002 (TRIA)
\1\ based, in part, upon its recognition that widespread unavailability
of terrorism risk insurance ``could seriously hamper ongoing and
planned construction, property acquisition, and other business
projects, generate a dramatic increase in rents, and otherwise suppress
economic activity.'' \2\ TRIA requires insurers to make coverage
available for certain lines of commercial property and casualty
insurance.\3\ To assist insurers with the financial exposure resulting
from this required offer of coverage, TRIA established the Terrorism
Risk Insurance Program (TRIP or Program), under which certain losses
resulting from an ``act of terrorism'' (as defined by TRIA) are
eligible for reimbursement through the Program. The Program is
administered in the Department of Treasury (Treasury) by the Secretary
of the Treasury (Secretary) with the assistance of the Federal
Insurance Office.\4\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 6701 note. Because the provisions of TRIA, as
amended, appear in a note of the United States Code, references to
the provisions of TRIA are identified by the sections of the law
(e.g., ``TRIA section 102(1) (definition of an `act of
terrorism')'').
\2\ TRIA section 101(a)(5).
\3\ See TRIA section 103(c).
\4\ 31 U.S.C. 313(c)(1)(D).
---------------------------------------------------------------------------
TRIA originally authorized the Program for a three-year period
ending December 31, 2005. The Program has since been reauthorized three
times, most recently in the Terrorism Risk Insurance Program
Reauthorization Act of 2015 (2015 Reauthorization Act),\5\ which
extended the Program until December 31, 2020. Among other reforms and
changes, the 2015 Reauthorization Act requires insurers participating
in the Program to submit to the Secretary, beginning in calendar year
2016, ``such information regarding insurance coverage for terrorism
losses of such insurers as the Secretary considers appropriate to
analyze the effectiveness of the Program . . . .'' This information and
data includes information regarding: (1) Lines of insurance with
exposure to such losses; (2) premiums earned on such coverage; (3)
geographical location of exposures; (4) pricing of such coverage; (5)
the take-up rate for such coverage; (6) the amount of private
reinsurance for acts of terrorism purchased; and (7) such other matters
as the Secretary considers appropriate.\6\
---------------------------------------------------------------------------
\5\ Pub. L. 114-1, 129 Stat. 3.
\6\ TRIA section 104(h)(1) (2015 Reauthorization Act, Section
111).
---------------------------------------------------------------------------
Treasury conducted a voluntary data call in 2016, to avoid
inadvertently imposing an unanticipated level of burden on
participating insurers. In that year, before implementing regulations
were effective, Treasury utilized a single reporting template approved
by the Office of Management and Budget (OMB) on an emergency basis
without a formal public notice and comment period. Data collected from
the insurers that elected to respond to this request formed the basis
for Treasury's first report under the 2015 Reauthorization Act
addressing the effectiveness of the Program.\7\
---------------------------------------------------------------------------
\7\ See Department of Treasury, Report on the Overall
Effectiveness of the Terrorism Risk Insurance Program (June 2016),
available at https://www.treasury.gov/initiatives/fio/reports-and-notices/Documents/2016_TRIP_Effectiveness_%20Report_FINAL.pdf.
---------------------------------------------------------------------------
On December 21, 2016, Treasury issued Final Rules concerning, among
other things, its data collection authorities under the Program.\8\ On
December 27, 2016, Treasury published the data collection forms that it
proposed to use for the 2017 data call, and invited the public to
provide comments concerning those proposed forms.\9\ Treasury received
seven comments concerning the forms.\10\ In response, and as discussed
further below, Treasury has made a number of modifications to the forms
and has also in certain ways modified the manner in which Treasury will
collect the identified data. OMB has approved the use of these forms
under Control Number 1505-0257.
---------------------------------------------------------------------------
\8\ 81 FR 93756 (Dec. 21, 2016); see 31 CFR 50.50-50.54.
\9\ 81 FR 95310 (Dec. 27, 2016).
\10\ Treasury received comments from the American Insurance
Association (AIA), the Property Casualty Insurers Association of
American (PCIAA), the National Association of Mutual Insurance
Companies (NAMIC), the International Underwriting Association of
London (IUA), Lloyd's of London (Lloyd's), Signal Mutual Indemnity
Association Ltd. (Signal), and an individual, James Murray (Murray).
The comments are available at https://www.regulations.gov/docketBrowser?rpp=25&so=DESC&sb=commentDueDate&po=0&D=TREAS-TRIP-2017-0002. References to these comments are incorporated below where
appropriate.
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II. Data Collection Forms and Procedures
The collection templates proposed for use in calendar year 2017 are
based upon the form created for use in calendar year 2016, although
certain changes were made based upon experience derived from the 2016
voluntary data call. The principal
[[Page 20421]]
change was that Treasury developed four separate templates for use,
depending upon the type or size of insurer providing information. Each
insurer group (or individual company if not affiliated with a group)
will fill out the template identified ``Insurer (Non-Small) Groups or
Companies,'' unless the insurer meets the definition of a small
insurer, captive insurer, or alien surplus lines insurer as set forth
in 31 CFR 50.4. These insurers are required to complete different forms
that are more specifically tailored to their operations.
Each form is accompanied by a separate ``data dictionary''
applicable to the form, which contains specific instructions to
complete each data element. In its initial notice seeking public
comment, Treasury set forth the general instructions concerning what
type of form each participating insurer must complete.\11\ These
instructions remain the same; however, Treasury is now clarifying that
insurers that participate in the Program because they have been
authorized by the Federal Government to provide insurance for various
purposes \12\ should complete the alien surplus lines template.
Treasury has provided further specific instructions in the associated
data dictionary concerning completion of the reporting template by
these insurers.
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\11\ See 81 FR 95310 (Dec. 27, 2016). In general, small insurers
(31 CFR 50.4(z)) are insurers who for purposes of the 2017 data
collection, which is otherwise requesting information from calendar
year 2016, had 2015 policyholder surplus and 2015 direct earned
premium of less than $600,000,000 (or five times the 2016 Program
Trigger of $120,000,000). In addition, a small insurer with less
than $10,000,000 in TRIP-eligible lines direct earned premium in
calendar year 2016 is not required to provide any data. Captive
insurers (31 CFR 50.4(g)) are insurers licensed under the captive
insurance laws or regulations of any state, and are all subject to
the same captive insurer template regardless of size. However, to
the extent a captive insurer writes policies in TRIP-eligible lines
of insurance, but does not actually provide its insureds with any
terrorism risk insurance subject to the Program, the captive insurer
is not required to provide data. Alien surplus lines insurers (31
CFR 50.4(o)(1)(i)(B)) are insurers not licensed or admitted to
engage in the business of providing primary or excess insurance in
any state, but that are eligible surplus line insurers listed on the
NAIC Quarterly Listing of Alien Insurers. To the extent an alien
surplus lines insurer is part of a larger group that is subject to
reporting under either the ``Insurer (Non-Small) Groups or
Companies'' or ``Small Insurers'' template, the information for that
alien surplus lines insurer should be reported as part of the larger
group, using the proper template. The ``Alien Surplus Lines''
template is to be used by any other alien surplus lines insurer,
regardless of size, that is not part of a larger group. Such alien
surplus lines insurers must report, at least for calendar year 2017,
even if they fall within the $10,000,000 premium threshold otherwise
required for small insurers to report.
\12\ See TRIA, Sec. 102(6)(A)(iii); 31 CFR 50.4(o)(1)(C). The
Alien Surplus Lines template should also be used by Federally-
approved insurers subject to the Program that are approved or
accepted for the purpose of offering property and casualty insurance
by a Federal agency in connection with maritime, energy, or aviation
activity, but only to the extent of such Federal approval of
property and casualty insurance coverage offered by the insurer in
connection with maritime, energy, or aviation activity.
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Commenters made a number of suggestions concerning the manner in
which data should be collected and provided specific suggestions
concerning individual data elements and the instructions concerning
those elements. Several commenters \13\ suggested that Treasury could
collect certain workers' compensation insurance elements through the
National Council on Compensation Insurance (NCCI) and other rating
bureaus that collect workers' compensation insurance data in order to
fulfill the obligation of participating insurers to report such
information. In response to these comments, Treasury has arranged with
NCCI and the California Workers' Compensation Insurance Rating Bureau
(California WCIRB) to provide (either directly or through other
workers' compensation rating bureaus) the workers' compensation
insurance elements of the data call relating to premium and payroll
information, including as allocated to specific geographic areas and
across industry groups, with the exception of private reinsurance
arrangements associated with workers' compensation insurance. This will
eliminate the need of insurers to report this information separately,
and the data aggregator will provide such insurers with reporting
templates that do not require completion of this workers' compensation
data. Instead, that information will be provided by NCCI and/or the
California WCIRB and then merged into the information provided directly
by the reporting insurers.
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\13\ See AIA Comments at 4; PCIAA Comments at 2; NAMIC Comments
at 1.
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Several commenters requested that Treasury delay the data
collection deadline. In support of this request, commenters cited the
fact that this is the first year of mandatory collection, and that a
delayed reporting date would allow insurers more time to verify and
compile information, leading to more accurate submissions.\14\
Commenters supported the permissibility of this position by noting that
Treasury's report in 2017 focuses upon small insurers, and that
information required from other insurers would not be relevant to that
report such that it could be reported at a later date.\15\
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\14\ See Lloyd's Comments at 1; IUA Comments at 1-2.
\15\ See Lloyd's Comments at 1; IUA Comments at 1-2; Murray
Comments at 1. One commenter suggested that a later date would be
consistent with a reporting date of October 1 that has been
established for the reporting to state regulators of certain
terrorism risk insurance information by alien surplus lines
insurers. See Lloyd's Comments at 1; IUA Comments at 1.
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Treasury selected the data reporting deadline of May 15 in the
Program Rules in response to comments indicating that the initial
proposed date of March 1 interfered with pre-existing state insurance
data production requirements. Treasury chose May 15 as the latest date
to obtain the necessary data and still reasonably complete its
statutory reporting obligations, which are due each year on June
30.\16\ Even though Treasury's 2017 report will be focusing upon small
insurers, information provided by other insurers will be relevant to
put into context the participation of small insurers in the terrorism
risk insurance marketplace.
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\16\ See 81 FR 93756, 93761 (Dec. 21, 2016).
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To address the concerns raised by commenters while still meeting
its statutory obligations, Treasury will, for 2017 only, limit the
amount of data that needs to be provided by May 15, 2017 by all
insurers to general registration, premium and policy counts, policy
exposures, and reinsurance (the information that is reportable by small
insurers).\17\ Additional information (for package or multi-line
policies, standalone terrorism insurance, policyholder industry codes,
and geographic exposures) must also be submitted by insurers other than
small insurers, and may be submitted with the initial submission by May
15. If this additional information is not provided with the initial
submission, it must be provided separately no later than October 1,
2017. Because all insurers will have taken the necessary steps to
compile data in 2017, Treasury will not grant extensions of the May 15
deadline in future years.
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\17\ The worksheets for non-small insurers, alien surplus lines
insurers, and captive insurers that cover the information that is
also reported by small insurers differ from the small insurer
worksheets in minor ways. Reporting insurers will still complete the
relevant worksheets of their own data reporting template, even
though it will differ somewhat from the small insurer template.
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One commenter suggested that the reporting forms were not geared to
reporting by Federally-approved insurers that are subject to the
Program.\18\ In response, and as noted above, Treasury has modified the
instructions to provide further guidance as to how such insurers should
respond to the 2017 data call, and will consider the development of a
separate form for such insurers for future collections.
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\18\ See Signal Comments at 1.
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Several commenters suggested the establishment of a telephone
``helpline''
[[Page 20422]]
and the hosting of a public webinar to assist reporting insurers that
have questions concerning the data collection requirements.\19\
Treasury (through its data aggregator) will establish such a helpline,
and will also host a public webinar concerning the process to assist
reporting insurers in responding to the proposed collection. Details
concerning participation in the webinar will be made available on
Treasury's Web site at https://www.treasury.gov/resource-center/fin-mkts/Pages/program.aspx. Treasury personnel, as identified above, may
also be contacted directly in connection with questions and guidance
for completion of the data collection templates.
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\19\ See AIA Comments at 4; PCIAA Comments at 2.
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Treasury also received a number of written comments addressing
technical changes or questions concerning the reporting forms. In
response, Treasury has modified the instructions in a number of ways to
clarify the information sought, and in some cases to reduce the burden
of reporting that might otherwise be presented by the collection as
originally proposed (for example, by adding fields to allow insurers to
report unallocated values that have not been specifically coded within
the insurer's existing systems).\20\
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\20\ Other examples of such technical changes include manner in
which policy count information should be entered in connection with
multiple line and multiple jurisdiction situations (see AIA Comments
at 4-5), confirmation as to how property insurance limits should be
entered in specific situations (see AIA Comments at 6), and
inconsistency in certain of the template headings vis-[agrave]-vis
the instructional materials (see AIA Comments at 5).
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III. Data Call
Treasury, through an insurance statistical aggregator, has
established the web portal identified above, through which insurers
will be able to submit the identified data. Reporting insurers should
visit this link in order to register for the 2017 data collection.
Copies of the collection forms (image files only) are also available at
the link identified above; however, reporting insurers will obtain the
fillable forms that they will use for reporting directly from the data
aggregator once they register for the data collection process. As noted
above, reporting insurers are required to submit completed data forms
containing data related to premium and policy counts, policy exposures,
and reinsurance no later than May 15, 2017; the remaining data
requested must be submitted no later than October 1, 2017. The
insurance statistical aggregator will provide instructions on how to
submit completed forms, and will also be available to answer questions
related to the completion of the forms.
All information submitted via the web portal is subject to the
confidentiality and data protection provisions of TRIA and the Program
Rules, as well as to section 552 of title 5, United States Code,
including any exceptions thereunder. In accordance with the Paperwork
Reduction Act, (44 U.S.C 3501 et seq.), the information collected
through the web portal has been approved by OMB under Control Number
1505-0257. An agency may not conduct or sponsor and a person is not
required to respond to a collection of information unless it displays a
valid OMB control number.
Dated: April 25, 2017.
Brian J. Peretti,
Director, Office of Critical Infrastructure Protection and Compliance
Policy.
[FR Doc. 2017-08716 Filed 4-28-17; 8:45 am]
BILLING CODE P
