Terrorism Risk Insurance Program 2018 Data Call, 56328-56331 [2017-25402]

Download as PDF ethrower on DSK3G9T082PROD with NOTICES 56328 Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Notices per month, and the use of TTB F 5250.1 to report all processed tobacco manufactured, received, and removed per month. TTB uses the collected information to ensure that Federal excise taxes have been properly paid and that manufacturers are in compliance with applicable Federal law and regulations. Form: TTB F 5210.5, TTB F 5250.1. Affected Public: Businesses or other for-profits. Estimated Total Annual Burden Hours: 2,820. Title: Manufacturers of Nonbeverage Products—Records to Support Claims for Drawback. OMB Control Number: 1513–0073. Type of Review: Extension without change of a currently approved collection. Abstract: The Internal Revenue Code (IRC) at 26 U.S.C. 5001 imposes a Federal excise tax of $13.50 per proof gallon on distilled spirits produced or imported into the United States. However, the IRC at 26 U.S.C. 5111– 5114, allows manufacturers of certain nonbeverage products that are unfit for beverage use—medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume—to claim drawback (refund) of all but $1.00 per proof gallon of the excise tax paid on the distilled spirits used in the production of such products. Under these IRC authorities, TTB has issued regulations governing nonbeverage product drawback claims, contained in 27 CFR part 17, which includes a requirement to keep source records supporting such claims. The required source records include information about distilled spirits received, gauge records, evidence of taxes paid, the date spirits were used, the quantity and kind used in each product, receipt and usage of other ingredients (to validate formula compliance), inventory records, records of recovered alcohol, the quantity of intermediate products transferred to other plants, the disposition of each nonbeverage product produced, and the purchasers (except for retail sales). These records are necessary to protect the revenue; the required records help prevent fraudulent claims and the diversion to beverage use of spirits on which nonbeverage product drawback is claimed. Form: None. Affected Public: Businesses or other for-profits. Estimated Total Annual Burden Hours: 11,130. Title: Proprietors or Claimants Exporting Liquors. OMB Control Number: 1513–0075. VerDate Sep<11>2014 19:51 Nov 27, 2017 Jkt 244001 Type of Review: Extension without change of a currently approved collection. Abstract: Under the Internal Revenue Code at 26 U.S.C. 5053, 5214, and 5362, distilled spirits, wine, and beer may be exported without payment of Federal excise tax. In addition, under the IRC at 26 U.S.C. 5055 and 5062, taxpaid distilled spirits, wine, and beer may be exported and the exporter may claim drawback (refund) on the excise taxes paid. To protect the revenue, exporters must complete various TTB and customs forms to show that the products were in fact exported. Under the TTB alcohol beverage export regulations in 27 CFR part 28, proprietors and drawback claimants are required to maintain record copies of all pertinent forms and commercial records that document the exportation of nontaxpaid alcohol beverages and the exportation of taxpaid alcohol beverages for which drawback will be claimed, and such records must be maintained for not less than 3 years. Form: None. Affected Public: Businesses or other for-profits. Estimated Total Annual Burden Hours: 750. Title: Administrative Remedies— Requests for Closing Agreements. OMB Control Number: 1513–0099. Type of Review: Extension without change of a currently approved collection. Abstract: The IRC, at 26 U.S.C. 7121, authorizes the Secretary of the Treasury to enter into a written agreement with any person relating to the liability of such person (or of the person or estate for whom he or she acts) in respect to any internal revenue tax for any taxable period. That IRC section also states that such agreements, once approved, are final and conclusive, unless it is shown that the taxpayer exhibited fraud or malfeasance, or misrepresented a material fact. Under its delegated authority, TTB has issued regulations at 27 CFR 70.485 pertaining to such ‘‘closing agreements.’’ Specific to this information collection, the regulation requires a taxpayer or their agent to submit a written request to TTB to enter into a closing agreement to resolve certain Federal excise tax matters. TTB uses the information collected in such a request and any attached supporting documentation to determine whether the Bureau should pursue a closing agreement with the taxpayer. Closing agreements allow TTB and a taxpayer to resolve tax liability matters prior to any adversarial legal or administrative proceedings. PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 Form: None. Affected Public: Businesses or other for-profits. Estimated Total Annual Burden Hours: 5. Authority: 44 U.S.C. 3501 et seq. Dated: November 22, 2017. Spencer W. Clark, Treasury PRA Clearance Officer. [FR Doc. 2017–25680 Filed 11–27–17; 8:45 am] BILLING CODE 4810–31–P DEPARTMENT OF THE TREASURY Terrorism Risk Insurance Program 2018 Data Call Departmental Offices, U.S. Department of the Treasury. ACTION: Request for comments. AGENCY: Pursuant to the Terrorism Risk Insurance Act of 2002 (TRIA),1 the Federal Insurance Office (FIO) requests public feedback on the proposed consolidation of the separate federal and state data calls regarding terrorism risk insurance, and the proposed data collection forms for use in the 2018 data call. Copies of these forms and associated explanatory materials (including a document identifying specific changes to the reporting templates and instructions as previously used by Treasury) are available for electronic review on the Treasury Web site at https://www.treasury.gov/ resource-center/fin-mkts/Pages/ program.aspx. State insurance regulators, through the National Association of Insurance Commissioners (NAIC), will also be separately seeking comment from stakeholders on the proposal. DATES: Submit comments on or before January 29, 2018. ADDRESSES: Submit comments electronically through the Federal eRulemaking Portal: http:// www.regulations.gov, or by mail to the Federal Insurance Office, Attn: Richard Ifft, Room 1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW., Washington, DC 20220. Because postal mail may be subject to processing delays, it is recommended that comments be submitted electronically. If submitting comments by mail, please submit an original version with two copies. Comments concerning the proposed data collection forms and SUMMARY: 1 Public Law 107–297, 116 Stat. 2322, codified at 15 U.S.C. 6701, note. Because the provisions of TRIA (as amended) appear in a note, instead of particular sections, of the United States Code, the provisions of TRIA are identified by the sections of the law. E:\FR\FM\28NON1.SGM 28NON1 Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Notices collection process should be captioned with ‘‘2018 TRIP Data Collection Comments.’’ Please include your name, group affiliation, address, email address, and telephone number(s) in your comment. Where appropriate, a comment should include a short Executive Summary (no more than five single-spaced pages). FOR FURTHER INFORMATION CONTACT: Richard Ifft, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, Room 1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW., Washington, DC 20220, at (202) 622–2922 (not a tollfree number), Lindsey Baldwin, Senior Policy Analyst, Federal Insurance Office, at (202) 622–3220 (not a toll free number), or Kevin Meehan, Senior Insurance Regulatory Policy Analyst, Federal Insurance Office, at (202) 622– 7009 (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: ethrower on DSK3G9T082PROD with NOTICES I. Background and Proposed Consolidated Approach TRIA created the Terrorism Risk Insurance Program (Program) within the U.S. Department of the Treasury (Treasury) to address disruptions in the market for terrorism risk insurance, to help ensure the continued availability and affordability of commercial property and casualty insurance for terrorism risk, and to allow for the private markets to stabilize and build insurance capacity to absorb any future losses for terrorism events. The Program has been reauthorized on a number of occasions, most recently in the Terrorism Risk Insurance Program Reauthorization Act of 2015 (2015 Reauthorization Act).2 Section 111 of the 2015 Reauthorization Act 3 (Section 111) requires the Secretary of the Treasury (Secretary) to perform periodic analyses of certain matters concerning the Program. In order to assist the Secretary with this process, Section 111 requires insurers to submit on an annual basis certain insurance data and information regarding their participation in the Program. FIO is authorized to assist the Secretary in the administration of the Program.4 Treasury began collecting data from insurers in 2016 on a voluntary basis,5 Law 114–1, 129 Stat. 3. sec. 104(h). 4 31 U.S.C. 313(c)(1)(D). 5 81 FR 11649 (March 4, 2016). 3 TRIA 19:51 Nov 27, 2017 II. Changes to Data Collection Templates Pursuant to Section 111 of the 2015 Reauthorization Act, Treasury has coordinated with publicly available sources to collect information for the 2018 data call. Information relating to workers’ compensation exposures is available from the workers’ 6 A reporting exemption was extended to small insurers that wrote less than $10 million in TRIPeligible lines premium in 2016. See 81 FR 95310 (December 27, 2016); 82 FR 20420 (May 1, 2017). 7 82 FR 20420 (May 1, 2017). 2 Public VerDate Sep<11>2014 and on a mandatory basis in 2017.6 Treasury also arranged in 2017 for workers’ compensation rating bureaus to provide most of the workers’ compensation insurance data elements.7 31 CFR 50.51 requires insurers to submit the specified data no later than May 15 of each calendar year. Treasury, through an insurance statistical aggregator, uses a web portal through which insurers must submit the requested data. All information submitted via the web portal is subject to the confidentiality and data protection provisions of applicable federal law. State insurance regulators also began annually collecting data relating to terrorism risk insurance in 2016. The state insurance regulator data calls have sought information similar to that collected by Treasury, although in some cases on a more detailed, granular basis. Given the similarity of the information sought, and the burden presented to insurers by the existence of dual data calls on the same subject, Treasury and state insurance regulators have sought to create a consolidated data call for 2018 that will satisfy each of their respective objectives. For the 2018 data call, Treasury and state insurance regulators have agreed on joint reporting templates substantially similar to those used by Treasury in prior years, subject to minor changes based upon experience gained from the 2017 data call, coordination with state insurance regulators and the NAIC, and feedback from participating insurers. The most significant changes are identified below. Insurers subject to the consolidated data call will report on a group basis, if part of a group, and otherwise will report on an individual company basis. Insurers with property exposures will also be required to submit to state insurance regulators, on an individual company basis, an additional supplement focusing on the property lines of insurance subject to the Program. This supplement calls for data with respect to geographic exposures by ZIP Code. Jkt 244001 PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 56329 compensation rating bureaus, and those entities have agreed to provide that information on behalf of participating insurers. Treasury has determined, however, that all other data components remain unavailable from other sources. Accordingly, Treasury will continue to request this remaining data and information directly from insurers. However, Treasury’s analysis indicates that the proposed consolidated approach for the 2018 data call will result in a significant reduction in overall data collection burdens for participating insurers. After coordinating with state insurance regulators, Treasury again proposes to use four different data collection templates (see 31 CFR 50.51(c)), depending upon the type of insurer involved. Insurers 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. Such small insurers, captive insurers, and alien surplus lines insurers are required to complete separate tailored templates. Each template will be accompanied by separate instructions providing guidance on each data element. There are four global changes to the proposed reporting templates for 2018. First, all reporting templates will now include a standalone cyber insurance worksheet. Second, the reinsurance worksheet that is required for non-small insurers, alien surplus lines insurers, and captive insurers will include a new modeled loss question.8 Third, the exposures worksheet (required for all insurers) will request information concerning policyholder deductibles and retention amounts, in addition to insurer exposure under policies subject to the Program. Fourth, the reporting templates no longer seek premium information on terrorism risk insurance for years prior to the reporting period.9 In addition to these four changes, the instructions for each reporting template will contain clarifications on how to report specific data elements. There are also a number of changes for specific insurer categories. For the 2018 data call (requesting insurer data for calendar year 2017), an insurer will qualify as a small insurer if it had both 2016 policyholder surplus and 2016 direct earned premium in the TRIP8 Small insurers complete a separate reinsurance worksheet that does not contain a modeled loss question. 9 For purposes of future reports, Treasury will use the information received during the 2017 data call, and continue to update this information over time as subsequent data calls are completed. E:\FR\FM\28NON1.SGM 28NON1 56330 Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Notices ethrower on DSK3G9T082PROD with NOTICES eligible lines of insurance of less than $700 million.10 Small insurers that had TRIP-eligible direct earned premium of less than $10 million in 2017 will be exempt from the 2018 consolidated TRIP data call.11 Neither captive insurers nor alien surplus lines insurers are eligible for this reporting exemption. In addition to the global changes identified above, small insurers will be required to report additional information on standalone terrorism policies (in addition to the new standalone cyber insurance policy worksheet). In addition, small insurers will now report their largest estimated probable maximum loss at a single location, and the ZIP code of that location, on the reinsurance worksheet. Insurers defined as small insurers for the 2018 data call will report the same information to Treasury (on a group basis) and state insurance regulators (also on a group basis), except with respect to property coverages, for which insurers will also provide additional reporting on an individual company basis in the property supplement submitted solely to state insurance regulators. State insurance regulators will provide their own guidance regarding the submission of data for the state property supplement. In addition to the global changes identified above, non-small insurers will no longer be required to complete a separate worksheet on package/multiline policies. The non-small insurer template should be completed by insurance groups (or individual insurers not affiliated with a group) that had either a 2016 policyholder surplus or 2016 direct earned premium in the TRIP-eligible lines of insurance equal to or greater than $700 million, and are not otherwise captive insurers or alien surplus lines insurers. Insurers defined as non-small insurers for the 2018 data call will report the same information to Treasury (on a group basis) and state insurance regulators (also on a group 10 Small insurers are defined in 31 CFR 50.4(z) as insurers (or an affiliated group of insurers) whose policyholder surplus for the immediately preceding year is less than five times the Program Trigger for the current year, and whose TRIP-eligible lines direct earned premium for the previous year is also five times less than the Program Trigger. Accordingly, for the 2018 data call, an insurer qualifies as a small insurer if its 2016 policyholder surplus and 2016 direct earned premium are less than five times the 2017 Program Trigger of $140 million. 11 To the extent an insurer with less than this level of TRIP-eligible lines direct earned premium is part of a larger group that is required to report, the insurer must report as part of the group as a whole, even if it is under the $10,000,000 direct earned premium threshold on an individual basis. Individual company information for such entities must also be reported to state insurance regulators. VerDate Sep<11>2014 19:51 Nov 27, 2017 Jkt 244001 basis), except with respect to property coverages. For property coverages, insurers will also provide additional reporting on an individual company basis in a property supplement submitted solely to state insurance regulators. As noted above, state insurance regulators will provide their own guidance regarding the submission of data for the state property supplement. In addition to the global changes identified above, captive insurers will no longer be required to complete a separate worksheet for workers’ compensation deductible policies, as this information will now be collected on the general premium worksheet. Captive insurers are defined in 31 CFR 50.4(g) as insurers licensed under the captive insurance laws or regulations of any state. As in 2017, captive insurers that write policies in TRIP-eligible lines of insurance are required to report in 2018, unless they do not provide their insureds with any terrorism risk insurance subject to the Program. The reporting template for alien surplus lines insurers does not contain changes, other than the global changes identified above. Alien surplus lines insurers are defined in 31 CFR 50.4(o)(1)(i)(B) as 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. Alien surplus lines insurers that are part of a larger group classified as a nonsmall insurer or a small insurer should report as part of the group, using the appropriate template. Therefore, the alien surplus lines insurer template should only be used by an alien surplus lines insurer that is not part of a larger group subject to the 2018 data call. Insurers defined as alien surplus lines insurers for the 2018 data call will report their information to Treasury and provide an identical copy to state insurance regulators.12 III. Submission of Data Following registration with the data aggregator, all insurers will be provided with the appropriate reporting templates for completion. Insurers will be required to submit the completed reporting templates through a secure web portal provided by the data aggregator. All data must be provided no later than May 15, 2018, which will also be the reporting deadline for state insurance regulators. 12 For 2017, state insurance regulators collected terrorism risk insurance data from alien surplus lines insurers through the NAIC’s International Insurers Department (IID). PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 Treasury intends to provide training and provide additional resources throughout the data collection period to facilitate the proper completion of reporting templates. To permit greater flexibility in the submission of data, Treasury will permit the submission of completed reporting templates in .csv file format, consistent with the format currently used by state insurance regulators. Treasury will provide further guidance on how this can be accomplished in a later notice or web posting. Responding companies may also continue to report using the templates (in Excel format) used in prior years. Reporting under the 2018 data call will be mandatory for all commercial property and casualty insurers writing insurance in lines subject to TRIA, unless the insurer falls within the exceptions for certain small insurers and captive insurers identified above. IV. Request for Comments To ensure efficient and accurate completion of the forms, Treasury is requesting public feedback on the content of the 2018 data call reporting templates, and the consolidated approach to the separate federal and state reporting outlined in this Request for Comments. The proposed forms are available for review at https:// www.treasury.gov/resource-center/finmkts/Pages/program.aspx. V. Procedural Requirements Paperwork Reduction Act. The collection of information contained in this notice will be submitted to the Office of Management and Budget (OMB) for review under the requirements of the Paperwork Reduction Act, 44 U.S.C. 3507(d). Comments should be sent to Treasury in the form discussed in the ADDRESSES section of this notice. Comments on the collection of information should be received by January 29, 2018. Comments are being sought with respect to the collection of information in the proposed Terrorism Risk Insurance Program 2018 data call. Treasury specifically invites comments on: (a) Whether the proposed collection is responsive to the statutory requirement; (b) the accuracy of the estimate of the burden of the collections of information (see below); (c) ways to enhance the quality, utility, and clarity of the information collection; (d) ways to use automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to maintain the information. E:\FR\FM\28NON1.SGM 28NON1 56331 ethrower on DSK3G9T082PROD with NOTICES Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Notices Treasury previously analyzed the potential burdens associated with the 2017 data call. See 81 FR 95310, 95312 (December 27, 2016). The information sought by Treasury comprises data elements that insurers currently collect or generate, although not necessarily grouped together the way in which insurers currently collect and evaluate the data. Based upon insurer submissions to the 2017 data call, Treasury estimates that for purposes of the 2018 data call, approximately 100 Program participants will be required to submit the ‘‘Insurer (Non-Small) Groups or Companies’’ data collection form, 200 Program participants will be required to submit the ‘‘Small Insurer’’ form, 400 Program participants will be required to submit the ‘‘Captive Insurer’’ form, and 25 Program participants will be required to submit the ‘‘Alien Surplus Lines Insurers’’ form. Each set of reporting templates is expected to incur a different level of burden. The changes to the proposed data reporting elements in 2018 are not anticipated to have a material impact on Treasury’s prior burden estimates. Treasury anticipates approximately 75 hours will be required to collect, process, and report the data for each non-small insurer, approximately 25 hours will be required to collect, process, and report data for each small insurer, and 50 hours will be required to collect, process, and report data for each captive insurer and alien surplus lines insurer. Due to the proposed consolidation of the separate federal and state data calls, however, the total burden upon reporting insurers overall (once state and federal obligations are accounted for) will be materially reduced for most insurers. Assuming this breakdown, and when applied to the number of reporting insurers anticipated in light of the experience of the 2017 data call, the estimated annual burden would be 33,750 hours ((100 insurers × 75 hours) + (200 insurers × 25 hours) + (400 insurers × 50 hours) + (25 insurers × 50 hours)). At a blended, fully loaded hourly rate of $85, the cost would be $2,868,750 across the industry as a whole, or $6,375 per non-small insurer, $2,125 per small insurer, and $4,250 each per captive insurer or alien surplus lines insurer. Steven E. Seitz, Deputy Director, Federal Insurance Office. [FR Doc. 2017–25402 Filed 11–27–17; 8:45 am] BILLING CODE 4810–25–P DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900–0658] Agency Information Collection Activity Under OMB Review: Lender’s Staff Appraisal Reviewer (SAR) Application Loan Guaranty Service, Department of Veterans Affairs. ACTION: Notice. AGENCY: In compliance with the Paperwork Reduction Act (PRA) of 1995, this notice announces that the Loan Guaranty Service, Department of Veterans Affairs, will submit the collection of information abstracted below to the Office of Management and Budget (OMB) for review and comment. The PRA submission describes the nature of the information collection and its expected cost and burden and it includes the actual data collection instrument. SUMMARY: Comments must be submitted on or before December 28, 2017. ADDRESSES: Submit written comments on the collection of information through www.Regulations.gov, or to Office of Information and Regulatory Affairs, Office of Management and Budget, Attn: VA Desk Officer; 725 17th St. NW., Washington, DC 20503 or sent through electronic mail to oira_submission@ omb.eop.gov. Please refer to ‘‘OMB Control No. 2900–0658’’ in any correspondence. DATES: FOR FURTHER INFORMATION CONTACT: Cynthia Harvey-Pryor, Office of Quality, Privacy and Risk (OQPR), Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420, (202) 461– 5870 or email cynthia.harvey-pryor@ va.gov. Please refer to ‘‘OMB Control No. 2900–0658’’ in any correspondence. SUPPLEMENTARY INFORMATION: Authority: Public Law 104–13; 44 U.S.C. 3501–3521. Committee name Title: VA FORM 26–0785, Lender’s Staff Appraisal Reviewer (SAR) Application. OMB Control Number: 2900–0658. Type of Review: Extension of a currently approved collection. Abstract: Title 38 U.S.C. 3702(d) authorizes VA to establish standards for lenders making automatically guaranteed loans and 38 CFR 36.4344 establishes requirements and procedures for lenders in being approved to perform the functions under the Lender Appraisal Processing Program (LAPP). An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The Federal Register Notice with a 60-day comment period soliciting comments on this collection of information was published at 82 FR 38759 on August 15, 2017, pages 38759– 38760. Affected Public: Individuals (employees of lenders making applications). Estimated Annual Burden: 200 hours. Estimated Average Burden per Respondent: 5 minutes. Frequency of Response: On occasion. Estimated Number of Respondents: 2,400 per year. By direction of the Secretary. Cynthia Harvey-Pryor, Department Clearance Officer, Office of Quality, Privacy and Risk, Department of Veterans Affairs. [FR Doc. 2017–25593 Filed 11–27–17; 8:45 am] BILLING CODE 8320–01–P DEPARTMENT OF VETERANS AFFAIRS Advisory Committee Charter Renewals Department of Veterans Affairs. Notice of advisory committee charter renewals. AGENCY: ACTION: In accordance with the provisions of the Federal Advisory Committee Act (FACA) and after consultation with the General Services Administration, the Secretary of Veterans Affairs has renewed the charter for the following statutorily authorized Federal advisory committee for a twoyear period, beginning on the date listed below: SUMMARY: Committee description Charter renewed on Advisory Committee on Provides advice to the Secretary on the administration of national cemeteries, Soldiers’ Cemeteries and Memorials. lots and plots, the selection of cemetery sites, the erection of appropriate memorials, and the adequacy of Federal burial benefits. VerDate Sep<11>2014 19:51 Nov 27, 2017 Jkt 244001 PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 E:\FR\FM\28NON1.SGM 28NON1 August 16, 2017.

Agencies

[Federal Register Volume 82, Number 227 (Tuesday, November 28, 2017)]
[Notices]
[Pages 56328-56331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25402]


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DEPARTMENT OF THE TREASURY


Terrorism Risk Insurance Program 2018 Data Call

AGENCY: Departmental Offices, U.S. Department of the Treasury.

ACTION: Request for comments.

-----------------------------------------------------------------------

SUMMARY: Pursuant to the Terrorism Risk Insurance Act of 2002 
(TRIA),\1\ the Federal Insurance Office (FIO) requests public feedback 
on the proposed consolidation of the separate federal and state data 
calls regarding terrorism risk insurance, and the proposed data 
collection forms for use in the 2018 data call. Copies of these forms 
and associated explanatory materials (including a document identifying 
specific changes to the reporting templates and instructions as 
previously used by Treasury) are available for electronic review on the 
Treasury Web site at https://www.treasury.gov/resource-center/fin-mkts/Pages/program.aspx. State insurance regulators, through the National 
Association of Insurance Commissioners (NAIC), will also be separately 
seeking comment from stakeholders on the proposal.
---------------------------------------------------------------------------

    \1\ Public Law 107-297, 116 Stat. 2322, codified at 15 U.S.C. 
6701, note. Because the provisions of TRIA (as amended) appear in a 
note, instead of particular sections, of the United States Code, the 
provisions of TRIA are identified by the sections of the law.

---------------------------------------------------------------------------
DATES: Submit comments on or before January 29, 2018.

ADDRESSES: Submit comments electronically through the Federal 
eRulemaking Portal: http://www.regulations.gov, or by mail to the 
Federal Insurance Office, Attn: Richard Ifft, Room 1410 MT, Department 
of the Treasury, 1500 Pennsylvania Avenue NW., Washington, DC 20220. 
Because postal mail may be subject to processing delays, it is 
recommended that comments be submitted electronically. If submitting 
comments by mail, please submit an original version with two copies. 
Comments concerning the proposed data collection forms and

[[Page 56329]]

collection process should be captioned with ``2018 TRIP Data Collection 
Comments.'' Please include your name, group affiliation, address, email 
address, and telephone number(s) in your comment. Where appropriate, a 
comment should include a short Executive Summary (no more than five 
single-spaced pages).

FOR FURTHER INFORMATION CONTACT: Richard Ifft, Senior Insurance 
Regulatory Policy Analyst, Federal Insurance Office, Room 1410 MT, 
Department of the Treasury, 1500 Pennsylvania Avenue NW., Washington, 
DC 20220, at (202) 622-2922 (not a toll-free number), Lindsey Baldwin, 
Senior Policy Analyst, Federal Insurance Office, at (202) 622-3220 (not 
a toll free number), or Kevin Meehan, Senior Insurance Regulatory 
Policy Analyst, Federal Insurance Office, at (202) 622-7009 (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 and Proposed Consolidated Approach

    TRIA created the Terrorism Risk Insurance Program (Program) within 
the U.S. Department of the Treasury (Treasury) to address disruptions 
in the market for terrorism risk insurance, to help ensure the 
continued availability and affordability of commercial property and 
casualty insurance for terrorism risk, and to allow for the private 
markets to stabilize and build insurance capacity to absorb any future 
losses for terrorism events. The Program has been reauthorized on a 
number of occasions, most recently in the Terrorism Risk Insurance 
Program Reauthorization Act of 2015 (2015 Reauthorization Act).\2\ 
Section 111 of the 2015 Reauthorization Act \3\ (Section 111) requires 
the Secretary of the Treasury (Secretary) to perform periodic analyses 
of certain matters concerning the Program. In order to assist the 
Secretary with this process, Section 111 requires insurers to submit on 
an annual basis certain insurance data and information regarding their 
participation in the Program. FIO is authorized to assist the Secretary 
in the administration of the Program.\4\
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    \2\ Public Law 114-1, 129 Stat. 3.
    \3\ TRIA sec. 104(h).
    \4\ 31 U.S.C. 313(c)(1)(D).
---------------------------------------------------------------------------

    Treasury began collecting data from insurers in 2016 on a voluntary 
basis,\5\ and on a mandatory basis in 2017.\6\ Treasury also arranged 
in 2017 for workers' compensation rating bureaus to provide most of the 
workers' compensation insurance data elements.\7\ 31 CFR 50.51 requires 
insurers to submit the specified data no later than May 15 of each 
calendar year. Treasury, through an insurance statistical aggregator, 
uses a web portal through which insurers must submit the requested 
data. All information submitted via the web portal is subject to the 
confidentiality and data protection provisions of applicable federal 
law.
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    \5\ 81 FR 11649 (March 4, 2016).
    \6\ A reporting exemption was extended to small insurers that 
wrote less than $10 million in TRIP-eligible lines premium in 2016. 
See 81 FR 95310 (December 27, 2016); 82 FR 20420 (May 1, 2017).
    \7\ 82 FR 20420 (May 1, 2017).
---------------------------------------------------------------------------

    State insurance regulators also began annually collecting data 
relating to terrorism risk insurance in 2016. The state insurance 
regulator data calls have sought information similar to that collected 
by Treasury, although in some cases on a more detailed, granular basis. 
Given the similarity of the information sought, and the burden 
presented to insurers by the existence of dual data calls on the same 
subject, Treasury and state insurance regulators have sought to create 
a consolidated data call for 2018 that will satisfy each of their 
respective objectives. For the 2018 data call, Treasury and state 
insurance regulators have agreed on joint reporting templates 
substantially similar to those used by Treasury in prior years, subject 
to minor changes based upon experience gained from the 2017 data call, 
coordination with state insurance regulators and the NAIC, and feedback 
from participating insurers. The most significant changes are 
identified below.
    Insurers subject to the consolidated data call will report on a 
group basis, if part of a group, and otherwise will report on an 
individual company basis. Insurers with property exposures will also be 
required to submit to state insurance regulators, on an individual 
company basis, an additional supplement focusing on the property lines 
of insurance subject to the Program. This supplement calls for data 
with respect to geographic exposures by ZIP Code.

II. Changes to Data Collection Templates

    Pursuant to Section 111 of the 2015 Reauthorization Act, Treasury 
has coordinated with publicly available sources to collect information 
for the 2018 data call. Information relating to workers' compensation 
exposures is available from the workers' compensation rating bureaus, 
and those entities have agreed to provide that information on behalf of 
participating insurers. Treasury has determined, however, that all 
other data components remain unavailable from other sources. 
Accordingly, Treasury will continue to request this remaining data and 
information directly from insurers. However, Treasury's analysis 
indicates that the proposed consolidated approach for the 2018 data 
call will result in a significant reduction in overall data collection 
burdens for participating insurers.
    After coordinating with state insurance regulators, Treasury again 
proposes to use four different data collection templates (see 31 CFR 
50.51(c)), depending upon the type of insurer involved. Insurers 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. Such small insurers, captive insurers, and alien 
surplus lines insurers are required to complete separate tailored 
templates. Each template will be accompanied by separate instructions 
providing guidance on each data element.
    There are four global changes to the proposed reporting templates 
for 2018. First, all reporting templates will now include a standalone 
cyber insurance worksheet. Second, the reinsurance worksheet that is 
required for non-small insurers, alien surplus lines insurers, and 
captive insurers will include a new modeled loss question.\8\ Third, 
the exposures worksheet (required for all insurers) will request 
information concerning policyholder deductibles and retention amounts, 
in addition to insurer exposure under policies subject to the Program. 
Fourth, the reporting templates no longer seek premium information on 
terrorism risk insurance for years prior to the reporting period.\9\ In 
addition to these four changes, the instructions for each reporting 
template will contain clarifications on how to report specific data 
elements.
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    \8\ Small insurers complete a separate reinsurance worksheet 
that does not contain a modeled loss question.
    \9\ For purposes of future reports, Treasury will use the 
information received during the 2017 data call, and continue to 
update this information over time as subsequent data calls are 
completed.
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    There are also a number of changes for specific insurer categories. 
For the 2018 data call (requesting insurer data for calendar year 
2017), an insurer will qualify as a small insurer if it had both 2016 
policyholder surplus and 2016 direct earned premium in the TRIP-

[[Page 56330]]

eligible lines of insurance of less than $700 million.\10\ Small 
insurers that had TRIP-eligible direct earned premium of less than $10 
million in 2017 will be exempt from the 2018 consolidated TRIP data 
call.\11\ Neither captive insurers nor alien surplus lines insurers are 
eligible for this reporting exemption.
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    \10\ Small insurers are defined in 31 CFR 50.4(z) as insurers 
(or an affiliated group of insurers) whose policyholder surplus for 
the immediately preceding year is less than five times the Program 
Trigger for the current year, and whose TRIP-eligible lines direct 
earned premium for the previous year is also five times less than 
the Program Trigger. Accordingly, for the 2018 data call, an insurer 
qualifies as a small insurer if its 2016 policyholder surplus and 
2016 direct earned premium are less than five times the 2017 Program 
Trigger of $140 million.
    \11\ To the extent an insurer with less than this level of TRIP-
eligible lines direct earned premium is part of a larger group that 
is required to report, the insurer must report as part of the group 
as a whole, even if it is under the $10,000,000 direct earned 
premium threshold on an individual basis. Individual company 
information for such entities must also be reported to state 
insurance regulators.
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    In addition to the global changes identified above, small insurers 
will be required to report additional information on standalone 
terrorism policies (in addition to the new standalone cyber insurance 
policy worksheet). In addition, small insurers will now report their 
largest estimated probable maximum loss at a single location, and the 
ZIP code of that location, on the reinsurance worksheet. Insurers 
defined as small insurers for the 2018 data call will report the same 
information to Treasury (on a group basis) and state insurance 
regulators (also on a group basis), except with respect to property 
coverages, for which insurers will also provide additional reporting on 
an individual company basis in the property supplement submitted solely 
to state insurance regulators. State insurance regulators will provide 
their own guidance regarding the submission of data for the state 
property supplement.
    In addition to the global changes identified above, non-small 
insurers will no longer be required to complete a separate worksheet on 
package/multi-line policies. The non-small insurer template should be 
completed by insurance groups (or individual insurers not affiliated 
with a group) that had either a 2016 policyholder surplus or 2016 
direct earned premium in the TRIP-eligible lines of insurance equal to 
or greater than $700 million, and are not otherwise captive insurers or 
alien surplus lines insurers. Insurers defined as non-small insurers 
for the 2018 data call will report the same information to Treasury (on 
a group basis) and state insurance regulators (also on a group basis), 
except with respect to property coverages. For property coverages, 
insurers will also provide additional reporting on an individual 
company basis in a property supplement submitted solely to state 
insurance regulators. As noted above, state insurance regulators will 
provide their own guidance regarding the submission of data for the 
state property supplement.
    In addition to the global changes identified above, captive 
insurers will no longer be required to complete a separate worksheet 
for workers' compensation deductible policies, as this information will 
now be collected on the general premium worksheet. Captive insurers are 
defined in 31 CFR 50.4(g) as insurers licensed under the captive 
insurance laws or regulations of any state. As in 2017, captive 
insurers that write policies in TRIP-eligible lines of insurance are 
required to report in 2018, unless they do not provide their insureds 
with any terrorism risk insurance subject to the Program.
    The reporting template for alien surplus lines insurers does not 
contain changes, other than the global changes identified above. Alien 
surplus lines insurers are defined in 31 CFR 50.4(o)(1)(i)(B) as 
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. Alien surplus lines insurers that are part of a larger 
group classified as a non-small insurer or a small insurer should 
report as part of the group, using the appropriate template. Therefore, 
the alien surplus lines insurer template should only be used by an 
alien surplus lines insurer that is not part of a larger group subject 
to the 2018 data call. Insurers defined as alien surplus lines insurers 
for the 2018 data call will report their information to Treasury and 
provide an identical copy to state insurance regulators.\12\
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    \12\ For 2017, state insurance regulators collected terrorism 
risk insurance data from alien surplus lines insurers through the 
NAIC's International Insurers Department (IID).
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III. Submission of Data

    Following registration with the data aggregator, all insurers will 
be provided with the appropriate reporting templates for completion. 
Insurers will be required to submit the completed reporting templates 
through a secure web portal provided by the data aggregator. All data 
must be provided no later than May 15, 2018, which will also be the 
reporting deadline for state insurance regulators. Treasury intends to 
provide training and provide additional resources throughout the data 
collection period to facilitate the proper completion of reporting 
templates.
    To permit greater flexibility in the submission of data, Treasury 
will permit the submission of completed reporting templates in .csv 
file format, consistent with the format currently used by state 
insurance regulators. Treasury will provide further guidance on how 
this can be accomplished in a later notice or web posting. Responding 
companies may also continue to report using the templates (in Excel 
format) used in prior years.
    Reporting under the 2018 data call will be mandatory for all 
commercial property and casualty insurers writing insurance in lines 
subject to TRIA, unless the insurer falls within the exceptions for 
certain small insurers and captive insurers identified above.

IV. Request for Comments

    To ensure efficient and accurate completion of the forms, Treasury 
is requesting public feedback on the content of the 2018 data call 
reporting templates, and the consolidated approach to the separate 
federal and state reporting outlined in this Request for Comments. The 
proposed forms are available for review at https://www.treasury.gov/resource-center/fin-mkts/Pages/program.aspx.

V. Procedural Requirements

    Paperwork Reduction Act. The collection of information contained in 
this notice will be submitted to the Office of Management and Budget 
(OMB) for review under the requirements of the Paperwork Reduction Act, 
44 U.S.C. 3507(d). Comments should be sent to Treasury in the form 
discussed in the ADDRESSES section of this notice. Comments on the 
collection of information should be received by January 29, 2018.
    Comments are being sought with respect to the collection of 
information in the proposed Terrorism Risk Insurance Program 2018 data 
call. Treasury specifically invites comments on: (a) Whether the 
proposed collection is responsive to the statutory requirement; (b) the 
accuracy of the estimate of the burden of the collections of 
information (see below); (c) ways to enhance the quality, utility, and 
clarity of the information collection; (d) ways to use automated 
collection techniques or other forms of information technology; and (e) 
estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to maintain the information.

[[Page 56331]]

    Treasury previously analyzed the potential burdens associated with 
the 2017 data call. See 81 FR 95310, 95312 (December 27, 2016). The 
information sought by Treasury comprises data elements that insurers 
currently collect or generate, although not necessarily grouped 
together the way in which insurers currently collect and evaluate the 
data. Based upon insurer submissions to the 2017 data call, Treasury 
estimates that for purposes of the 2018 data call, approximately 100 
Program participants will be required to submit the ``Insurer (Non-
Small) Groups or Companies'' data collection form, 200 Program 
participants will be required to submit the ``Small Insurer'' form, 400 
Program participants will be required to submit the ``Captive Insurer'' 
form, and 25 Program participants will be required to submit the 
``Alien Surplus Lines Insurers'' form.
    Each set of reporting templates is expected to incur a different 
level of burden. The changes to the proposed data reporting elements in 
2018 are not anticipated to have a material impact on Treasury's prior 
burden estimates. Treasury anticipates approximately 75 hours will be 
required to collect, process, and report the data for each non-small 
insurer, approximately 25 hours will be required to collect, process, 
and report data for each small insurer, and 50 hours will be required 
to collect, process, and report data for each captive insurer and alien 
surplus lines insurer. Due to the proposed consolidation of the 
separate federal and state data calls, however, the total burden upon 
reporting insurers overall (once state and federal obligations are 
accounted for) will be materially reduced for most insurers.
    Assuming this breakdown, and when applied to the number of 
reporting insurers anticipated in light of the experience of the 2017 
data call, the estimated annual burden would be 33,750 hours ((100 
insurers x 75 hours) + (200 insurers x 25 hours) + (400 insurers x 50 
hours) + (25 insurers x 50 hours)). At a blended, fully loaded hourly 
rate of $85, the cost would be $2,868,750 across the industry as a 
whole, or $6,375 per non-small insurer, $2,125 per small insurer, and 
$4,250 each per captive insurer or alien surplus lines insurer.

Steven E. Seitz,
Deputy Director, Federal Insurance Office.
[FR Doc. 2017-25402 Filed 11-27-17; 8:45 am]
 BILLING CODE 4810-25-P