[Federal Register Volume 68, Number 75 (Friday, April 18, 2003)]
[Proposed Rules]
[Page 19309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-9612]



  Federal Register / Vol. 68, No. 75 / Friday, April 18, 2003 / 
Proposed Rules  

[[Page 19309]]


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DEPARTMENT OF THE TREASURY

31 CFR Part 50

RIN 1505-AA98


Terrorism Risk Insurance Program

AGENCY: Departmental Offices, Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to interim 
final rule.

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SUMMARY: The Department of the Treasury (Treasury) is issuing this 
proposed rule as part of its implementation of Title I of the Terrorism 
Risk Insurance Act of 2002 (the Act). That Act established a temporary 
Terrorism Risk Insurance Program (Program) under which the Federal 
Government will share the risk of insured loss from certified acts of 
terrorism with commercial property and casualty insurers until the 
Program sunsets on December 31, 2005. This rule incorporates and 
clarifies statutory conditions for federal payment under the Program 
that require insurers to make certain disclosures to policyholders. The 
rule also incorporates and clarifies statutory requirements that 
insurers ``make available,'' in their commercial property and casualty 
insurance policies, terrorism risk coverage for insured losses under 
the Program. The rule generally incorporates interim guidance 
previously issued by Treasury in this area, but with some 
modifications. This proposed rule, together with the interim final rule 
published elsewhere in this separate part of the Federal Register, are 
the second in a series of regulations Treasury will issue to implement 
the Act.

DATES: Written comments may be submitted on or before May 19, 2003.

ADDRESSES: Submit comments (if hard copy, preferably an original and 
two copies) to Office of Financial Institutions Policy, Attention: 
Terrorism Risk Insurance Program Public Comment Record, Room 3160 
Annex, Department of the Treasury, 1500 Pennsylvania Ave., NW., 
Washington, DC 20220. Because paper mail in the Washington, DC area may 
be subject to delay, it is recommended that comments be submitted by 
electronic mail to: [email protected]. All comments should be 
captioned with ``April 18, 2003 TRIA Interim Final Rule Comments.'' 
Please include your name, affiliation, address, e-mail address and 
telephone number in your comment. Comments will be available for public 
inspection by appointment only at the Reading Room of the Treasury 
Library. To make appointments, call (202) 622-0990 (not a toll-free 
number).

FOR FURTHER INFORMATION CONTACT: Mario Ugoletti, Deputy Director, 
Office of Financial Institutions Policy (202) 622-2730, or Martha 
Ellett or Cynthia Reese, Attorney-Advisors, Office of the Assistant 
General Counsel (Banking & Finance), (202) 622-0480 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

I. The Proposed Rule

    Published elsewhere in this separate part of the Federal Register 
is an interim final rule adding Subparts B and C to 31 CFR part 50, 
which comprises Treasury's regulations implementing the Act. The 
preamble to the interim final rule explains these provisions of the 
proposed rule in detail, and the text of the interim final rule serves 
as the text for this proposed rule.

II. Procedural Requirements

    This proposed rule is a significant regulatory action and has been 
reviewed by the Office of Management and Budget under the terms of 
Executive Order 12866.
    It is hereby certified that this proposed rule will not have a 
significant economic impact on a substantial number of small entities. 
The Act requires all licensed or admitted insurers to participate in 
the Program. This includes all insurers regardless of size or 
sophistication. The Act also defines property and casualty insurance to 
mean commercial lines without any reference to the size or scope of the 
commercial entity. The disclosure and make available requirements are 
required by the Act. The proposed rule allows all insurers, whether 
large or small, to use existing systems and business practices to 
demonstrate compliance. Accordingly, any economic impact associated 
with the proposed rule flows from the Act and not the proposed rule. 
However, the Act and the Program are intended to provide benefits to 
the U.S. economy and all businesses, including small businesses, by 
providing a federal reinsurance backstop to commercial property and 
casualty insurance policyholders and spreading the risk of insured loss 
resulting from an act of terrorism.

List of Subjects in 31 CFR Part 50

    Terrorism risk insurance.

Authority and Issuance

    For the reasons set forth above, the Department of the Treasury 
proposes to adopt as a final rule the interim final rule adding 
subparts B and C to 31 CFR part 50, as follows:
    The text of proposed subparts B and C to 31 CFR part 50 is the same 
as the text of subparts B and C to 31 CFR part 50 in the interim final 
rule published elsewhere in this separate part of this issue of the 
Federal Register.

    Dated: April 11, 2003.
Wayne A. Abernathy,
Assistant Secretary of the Treasury.
[FR Doc. 03-9612 Filed 4-17-03; 8:45 am]
BILLING CODE 4810-25-P