IMARA Calculation for Calendar Year 2020 Under the Terrorism Risk Insurance Program, 69462-69464 [2019-27279]
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[FR Doc. 2019–27285 Filed 12–17–19; 8:45 am]
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DEPARTMENT OF THE TREASURY
RIN 1505–AC62
IMARA Calculation for Calendar Year
2020 Under the Terrorism Risk
Insurance Program
Departmental Offices,
Department of the Treasury.
ACTION: Notice.
AGENCY:
VerDate Sep<11>2014
16:40 Dec 17, 2019
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PO 00000
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Fmt 4703
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The Department of the
Treasury (Treasury) is issuing this
notice to advise the public of the
calculation of the Terrorism Risk
Insurance Program’s (TRIP or Program)
insurance marketplace aggregate
retention amount (IMARA) under the
Terrorism Risk Insurance Act, as
amended, for purposes of calendar year
SUMMARY:
E:\FR\FM\18DEN1.SGM
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69463
Federal Register / Vol. 84, No. 243 / Wednesday, December 18, 2019 / Notices
2020. The IMARA has been determined
by Treasury to be $40,878,630,900.
DATES: The IMARA for purposes of
calendar year 2020 is effective from
January 1, 2020, until December 31,
2020.
FOR FURTHER INFORMATION CONTACT:
Richard Ifft, Senior Insurance
Regulatory Policy Analyst, Federal
Insurance Office, 202–622–2922, or
Lindsey Baldwin, Senior Policy Analyst,
Federal Insurance Office, 202–622–
3220.
SUPPLEMENTARY INFORMATION:
I. Background
The Terrorism Risk Insurance Act of
2002 (as amended, the Act or TRIA) 1
was enacted on November 26, 2002,
following the attacks of September 11,
2001, 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.2 TRIA
requires insurers to ‘‘make available’’
terrorism risk insurance for commercial
property and casualty losses resulting
from certified acts of terrorism (insured
losses), and provides for shared public
and private compensation for such
insured losses. The Program has been
reauthorized three times, most recently
by the Terrorism Risk Insurance
Program Reauthorization Act of 2015
(2015 Reauthorization Act).3 The
Secretary of the Treasury (Secretary)
administers the Program. The Federal
Insurance Office (FIO) assists the
Secretary in administering the
Program.4
The Act established an industry
marketplace aggregate retention amount
(IMARA) as a threshold figure to
determine whether any Treasury
payments under the Program are subject
to mandatory recoupment. Under the
Act, if total annual payments by
participating insurers are below the
IMARA, Treasury must recoup all
amounts expended by it up to the
IMARA threshold (mandatory
recoupment). If total annual payments
by participating insurers are above the
IMARA, Treasury has the discretion to
recoup all expended amounts above the
IMARA threshold (discretionary
recoupment).5
The 2015 Reauthorization Act
provided for a schedule of defined
IMARA values from calendar year 2015
through calendar year 2019.6 The 2015
Reauthorization Act also provided that
for calendar year 2020 and future years
the IMARA ‘‘shall be revised to be the
amount equal to the annual average of
the sum of insurer deductibles for all
insurers participating in the Program for
the prior 3 calendar years,’’ as such sum
is determined pursuant to final rules
issued by the Secretary.7 These final
rules, which were issued by Treasury in
2016 and revised in 2019, added
Program regulation 31 CFR 50.4(m).8
Under 31 CFR 50.4(m)(2), the IMARA
for calendar year 2020 is calculated by
reference to the average annual industry
aggregate deductibles over the prior
three calendar years for purposes of the
Program, based upon the direct earned
premium (DEP) reported to Treasury by
insurers in Treasury’s annual data calls.
For purposes of 2020, Treasury will
make the calculation based upon
aggregate insurer deductibles for the
previous three calendar years (2019,
2018, and 2017). Insurer deductibles
under the Program are based upon the
DEP of individual insurers in the year
prior to the year in question. As a result,
deductibles used in the 2020 IMARA are
based on DEP for calendar years 2018,
2017, and 2016, as reported to Treasury
in 2019, 2018, and 2017.
In the June 2019 Study of Small
Insurer Competitiveness in the
Terrorism Risk Insurance Marketplace
(2019 Small Insurer Study),9 Treasury
identified DEP in the TRIP-eligible lines
of insurance reported to Treasury in its
2017, 2018, and 2019 data calls as
follows:
FIGURE 1—TRIP-ELIGIBLE DEP BY INSURER CATEGORY 10
2017 TRIP data call
2016 DEP in
TRIP-eligible
lines
2018 TRIP data call
2017 DEP in
TRIP-eligible
lines
% of total
2019 TRIP data call
2018 DEP in
TRIP-eligible
lines
% of total
% of total
Alien Surplus Lines Ins ..........
Captive Insurers .....................
Non-Small Insurers ................
Small Insurers ........................
$7,421,060,583
7,930,646,027
168,238,219,882
20,085,947,637
4
4
83
10
$9,492,933,571
9,052,630,571
163,891,791,592
21,806,195,201
5
4
80
11
$7,618,548,358
8,937,119,082
166,188,192,378
22,516,178,612
4
4
81
11
Total ................................
203,675,874,129
100
204,243,550,936
100
205,260,038,430
100
khammond on DSKJM1Z7X2PROD with NOTICES
Source: 2017–2019 TRIP Data Calls.
The reported premiums in Figure 1
are the operative figures for purposes of
calculating the IMARA for calendar year
2020 in accordance with 31 CFR
50.4(m)(2). The average annual DEP
figure for the combined period of 2016,
2017, and 2018 is $204,393,154,498
($203,675,874,129 + $204,243,550,936 +
$205,260,038,430 = $613,179,463,495/3
= $204,393,154,498). The annual
average of the sum of insurer
deductibles for all insurers for the prior
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 U.S. Code, the provisions
of TRIA are identified by the sections of the law.
2 TRIA, sec. 101(b).
3 See Terrorism Risk Insurance Extension Act of
2005, Public Law 109–144, 119 Stat. 2660;
Terrorism Risk Insurance Program Reauthorization
Act of 2007, Public Law 110–160, 121 Stat. 1839;
Terrorism Risk Insurance Program Reauthorization
Act of 2015, Public Law 114–1, 129 Stat. 3.
4 31 U.S.C. 313(c)(1)(D).
5 See TRIA, sec. 103(e)(7); see also 31 CFR part
50 subpart J (Recoupment and Surcharge
Procedures).
6 In 2015, the IMARA was $29.5 billion; it
increased to $31.5 billion in 2016, $33.5 billion in
2017, $35.5 billion in 2018, and $37.5 billion in
2019. See TRIA, sec. 103(e)(6)(B).
7 TRIA, sec. 103(e)(6)(B)(ii) and (e)(6)(C). An
insurer’s deductible under the Program for any
particular year is 20 percent of its direct earned
premium subject to the Program during the
preceding year. TRIA, sec. 102(7). For example, an
insurer’s calendar year 2019 Program deductible is
20 percent of its calendar year 2018 direct earned
premium.
8 See 81 FR 93756 (December 21, 2016), which
added 31 CFR 50.4(m) and other Program
regulations, and 84 FR 62450 (November 15, 2019),
which implemented technical changes to 31 CFR
50.4(m).
9 https://www.treasury.gov/initiatives/fio/reportsand-notices/Documents/2019_TRIP_SmallInsurer_
Report.pdf.
10 Some figures may not add to 100 percent due
to rounding. See 2019 Small Insurer Study at 16.
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69464
Federal Register / Vol. 84, No. 243 / Wednesday, December 18, 2019 / Notices
three years is 20 percent of
$204,393,154,498, or $40,878,630,900.11
Accordingly, the IMARA for purposes of
calendar year 2020 is $40,878,630,900.
Steven E. Seitz,
Director, Federal Insurance Office.
[FR Doc. 2019–27279 Filed 12–17–19; 8:45 am]
BILLING CODE 4810–25–P
DEPARTMENT OF THE TREASURY
Agency Information Collection
Activities; Submission for OMB
Review; Comment Request; Imposition
of Special Measure Against Banco
Delta Asia
Departmental Offices, U.S.
Department of the Treasury.
ACTION: Notice.
AGENCY:
The Department of the
Treasury will submit the following
information collection requests to the
Office of Management and Budget
(OMB) for review and clearance in
accordance with the Paperwork
Reduction Act of 1995, on or after the
date of publication of this notice. The
public is invited to submit comments on
these requests.
DATES: Comments should be received on
or before January 17, 2020 to be assured
of consideration.
ADDRESSES: Send comments regarding
the burden estimate, or any other aspect
of the information collection, including
suggestions for reducing the burden, to
(1) Office of Information and Regulatory
Affairs, Office of Management and
Budget, Attention: Desk Officer for
Treasury, New Executive Office
Building, Room 10235, Washington, DC
20503, or email at OIRA_Submission@
OMB.EOP.gov and (2) Treasury PRA
Clearance Officer, 1750 Pennsylvania
Ave. NW, Suite 8100, Washington, DC
20220, or email at PRA@treasury.gov.
FOR FURTHER INFORMATION CONTACT:
Copies of the submissions may be
obtained from Spencer W. Clark by
emailing PRA@treasury.gov, calling
(202) 927–5331, or viewing the entire
information collection request at
www.reginfo.gov.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
Financial Crimes Enforcement Network
(FinCEN)
Title: Imposition of Special Measure
against Banco Delta Asia.
11 See
note 7 above.
VerDate Sep<11>2014
16:40 Dec 17, 2019
Jkt 250001
OMB Control Number: 1506–0045.
Type of Review: Extension without
change of a currently approved
collection.
Description: On March 14, 2007, the
Financial Crimes Enforcement Network
(FinCEN) of the U.S. Department of the
Treasury issued a final rule under the
authority of section 5318A of Title 31,
United States Code, to impose a special
measure with respect to Banco Delta
Asia. Specifically, FinCEN imposed
special measure five prohibiting U.S.
financial institutions from opening or
maintaining accounts for, or on behalf
of, Banco Delta Asia and requiring U.S.
financial institution to apply due
diligence to its correspondent accounts
to ensure they are not used to provide
Banco Delta Asia with indirect access to
the U.S. financial system.
Form: None.
Affected Public: Businesses or other
for-profits.
Estimated Number of Respondents:
23,615.
Frequency of Response: Once.
Estimated Total Number of Annual
Responses: 23,615.
Estimated Time per Response: 1 hour.
Estimated Total Annual Burden
Hours: 23,615.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: December 12, 2019.
Spencer W. Clark,
Treasury PRA Clearance Officer.
[FR Doc. 2019–27213 Filed 12–17–19; 8:45 am]
BILLING CODE 4810–02–P
DEPARTMENT OF THE TREASURY
Agency Information Collection
Activities; Submission for OMB
Review; Comment Request; Treasury
International Capital (TIC) Forms
CQ–1 and CQ–2
Departmental Offices, U.S.
Department of the Treasury.
ACTION: Notice.
AGENCY:
The Department of the
Treasury will submit the following
information collection requests to the
Office of Management and Budget
(OMB) for review and clearance in
accordance with the Paperwork
Reduction Act of 1995, on or after the
date of publication of this notice. The
public is invited to submit comments on
these requests.
DATES: Comments should be received on
or before January 17, 2020 to be assured
of consideration.
SUMMARY:
PO 00000
Frm 00112
Fmt 4703
Sfmt 9990
Send comments regarding
the burden estimate, or any other aspect
of the information collection, including
suggestions for reducing the burden, to
(1) Office of Information and Regulatory
Affairs, Office of Management and
Budget, Attention: Desk Officer for
Treasury, New Executive Office
Building, Room 10235, Washington, DC
20503, or email at OIRA_Submission@
OMB.EOP.gov and (2) Treasury PRA
Clearance Officer, 1750 Pennsylvania
Ave. NW, Suite 8100, Washington, DC
20220, or email at PRA@treasury.gov.
FOR FURTHER INFORMATION CONTACT:
Copies of the submissions may be
obtained from Spencer W. Clark by
emailing PRA@treasury.gov, calling
(202) 927–5331, or viewing the entire
information collection request at
www.reginfo.gov.
ADDRESSES:
SUPPLEMENTARY INFORMATION:
Treasury Departmental Offices (DO)
Title: Treasury International Capital
(TIC) Forms CQ–1 and CQ–2.
OMB Control Number: 1505–0024.
Type of Review: Extension without
change of a currently approved
collection.
Description: Forms CQ–1 and CQ–2
are required by law to collect timely
information on international portfolio
capital movements, in particular data on
financial and commercial liabilities to,
and claims on, unaffiliated foreign
residents held by non-financial
enterprises in the U.S. This information
is necessary in the computation of the
U.S. balance of payments accounts and
the U.S. international investment
position, and in the formulation of U.S.
international financial and monetary
policies.
Form: CQ–1, CQ–2.
Affected Public: Businesses or other
for-profits.
Estimated Number of Respondents:
125.
Frequency of Response: Quarterly.
Estimated Total Number of Annual
Responses: 500.
Estimated Time per Response: 6.7.
Estimated Total Annual Burden
Hours: 3,350.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: December 12, 2019.
Spencer W. Clark,
Treasury PRA Clearance Officer.
[FR Doc. 2019–27208 Filed 12–17–19; 8:45 am]
BILLING CODE 4810–25–P
E:\FR\FM\18DEN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 243 (Wednesday, December 18, 2019)]
[Notices]
[Pages 69462-69464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27279]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
RIN 1505-AC62
IMARA Calculation for Calendar Year 2020 Under the Terrorism Risk
Insurance Program
AGENCY: Departmental Offices, Department of the Treasury.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury (Treasury) is issuing this
notice to advise the public of the calculation of the Terrorism Risk
Insurance Program's (TRIP or Program) insurance marketplace aggregate
retention amount (IMARA) under the Terrorism Risk Insurance Act, as
amended, for purposes of calendar year
[[Page 69463]]
2020. The IMARA has been determined by Treasury to be $40,878,630,900.
DATES: The IMARA for purposes of calendar year 2020 is effective from
January 1, 2020, until December 31, 2020.
FOR FURTHER INFORMATION CONTACT: Richard Ifft, Senior Insurance
Regulatory Policy Analyst, Federal Insurance Office, 202-622-2922, or
Lindsey Baldwin, Senior Policy Analyst, Federal Insurance Office, 202-
622-3220.
SUPPLEMENTARY INFORMATION:
I. Background
The Terrorism Risk Insurance Act of 2002 (as amended, the Act or
TRIA) \1\ was enacted on November 26, 2002, following the attacks of
September 11, 2001, 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.\2\ TRIA requires insurers to ``make available'' terrorism risk
insurance for commercial property and casualty losses resulting from
certified acts of terrorism (insured losses), and provides for shared
public and private compensation for such insured losses. The Program
has been reauthorized three times, most recently by the Terrorism Risk
Insurance Program Reauthorization Act of 2015 (2015 Reauthorization
Act).\3\ The Secretary of the Treasury (Secretary) administers the
Program. The Federal Insurance Office (FIO) assists the Secretary in
administering the Program.\4\
---------------------------------------------------------------------------
\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 U.S. Code, the provisions
of TRIA are identified by the sections of the law.
\2\ TRIA, sec. 101(b).
\3\ See Terrorism Risk Insurance Extension Act of 2005, Public
Law 109-144, 119 Stat. 2660; Terrorism Risk Insurance Program
Reauthorization Act of 2007, Public Law 110-160, 121 Stat. 1839;
Terrorism Risk Insurance Program Reauthorization Act of 2015, Public
Law 114-1, 129 Stat. 3.
\4\ 31 U.S.C. 313(c)(1)(D).
---------------------------------------------------------------------------
The Act established an industry marketplace aggregate retention
amount (IMARA) as a threshold figure to determine whether any Treasury
payments under the Program are subject to mandatory recoupment. Under
the Act, if total annual payments by participating insurers are below
the IMARA, Treasury must recoup all amounts expended by it up to the
IMARA threshold (mandatory recoupment). If total annual payments by
participating insurers are above the IMARA, Treasury has the discretion
to recoup all expended amounts above the IMARA threshold (discretionary
recoupment).\5\
---------------------------------------------------------------------------
\5\ See TRIA, sec. 103(e)(7); see also 31 CFR part 50 subpart J
(Recoupment and Surcharge Procedures).
---------------------------------------------------------------------------
The 2015 Reauthorization Act provided for a schedule of defined
IMARA values from calendar year 2015 through calendar year 2019.\6\ The
2015 Reauthorization Act also provided that for calendar year 2020 and
future years the IMARA ``shall be revised to be the amount equal to the
annual average of the sum of insurer deductibles for all insurers
participating in the Program for the prior 3 calendar years,'' as such
sum is determined pursuant to final rules issued by the Secretary.\7\
These final rules, which were issued by Treasury in 2016 and revised in
2019, added Program regulation 31 CFR 50.4(m).\8\
---------------------------------------------------------------------------
\6\ In 2015, the IMARA was $29.5 billion; it increased to $31.5
billion in 2016, $33.5 billion in 2017, $35.5 billion in 2018, and
$37.5 billion in 2019. See TRIA, sec. 103(e)(6)(B).
\7\ TRIA, sec. 103(e)(6)(B)(ii) and (e)(6)(C). An insurer's
deductible under the Program for any particular year is 20 percent
of its direct earned premium subject to the Program during the
preceding year. TRIA, sec. 102(7). For example, an insurer's
calendar year 2019 Program deductible is 20 percent of its calendar
year 2018 direct earned premium.
\8\ See 81 FR 93756 (December 21, 2016), which added 31 CFR
50.4(m) and other Program regulations, and 84 FR 62450 (November 15,
2019), which implemented technical changes to 31 CFR 50.4(m).
---------------------------------------------------------------------------
Under 31 CFR 50.4(m)(2), the IMARA for calendar year 2020 is
calculated by reference to the average annual industry aggregate
deductibles over the prior three calendar years for purposes of the
Program, based upon the direct earned premium (DEP) reported to
Treasury by insurers in Treasury's annual data calls. For purposes of
2020, Treasury will make the calculation based upon aggregate insurer
deductibles for the previous three calendar years (2019, 2018, and
2017). Insurer deductibles under the Program are based upon the DEP of
individual insurers in the year prior to the year in question. As a
result, deductibles used in the 2020 IMARA are based on DEP for
calendar years 2018, 2017, and 2016, as reported to Treasury in 2019,
2018, and 2017.
In the June 2019 Study of Small Insurer Competitiveness in the
Terrorism Risk Insurance Marketplace (2019 Small Insurer Study),\9\
Treasury identified DEP in the TRIP-eligible lines of insurance
reported to Treasury in its 2017, 2018, and 2019 data calls as follows:
---------------------------------------------------------------------------
\9\ https://www.treasury.gov/initiatives/fio/reports-and-notices/Documents/2019_TRIP_SmallInsurer_Report.pdf.
Figure 1--TRIP-Eligible DEP by Insurer Category \10\
--------------------------------------------------------------------------------------------------------------------------------------------------------
2017 TRIP data call 2018 TRIP data call 2019 TRIP data call
--------------------------------------------------------------------------------------------------------
2016 DEP in TRIP- 2017 DEP in TRIP- 2018 DEP in TRIP-
eligible lines % of total eligible lines % of total eligible lines % of total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alien Surplus Lines Ins........................ $7,421,060,583 4 $9,492,933,571 5 $7,618,548,358 4
Captive Insurers............................... 7,930,646,027 4 9,052,630,571 4 8,937,119,082 4
Non-Small Insurers............................. 168,238,219,882 83 163,891,791,592 80 166,188,192,378 81
Small Insurers................................. 20,085,947,637 10 21,806,195,201 11 22,516,178,612 11
--------------------------------------------------------------------------------------------------------
Total...................................... 203,675,874,129 100 204,243,550,936 100 205,260,038,430 100
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: 2017-2019 TRIP Data Calls.
The reported premiums in Figure 1 are the operative figures for
purposes of calculating the IMARA for calendar year 2020 in accordance
with 31 CFR 50.4(m)(2). The average annual DEP figure for the combined
period of 2016, 2017, and 2018 is $204,393,154,498 ($203,675,874,129 +
$204,243,550,936 + $205,260,038,430 = $613,179,463,495/3 =
$204,393,154,498). The annual average of the sum of insurer deductibles
for all insurers for the prior
[[Page 69464]]
three years is 20 percent of $204,393,154,498, or $40,878,630,900.\11\
Accordingly, the IMARA for purposes of calendar year 2020 is
$40,878,630,900.
---------------------------------------------------------------------------
\10\ Some figures may not add to 100 percent due to rounding.
See 2019 Small Insurer Study at 16.
\11\ See note 7 above.
Steven E. Seitz,
Director, Federal Insurance Office.
[FR Doc. 2019-27279 Filed 12-17-19; 8:45 am]
BILLING CODE 4810-25-P
