[Federal Register Volume 71, Number 91 (Thursday, May 11, 2006)]
[Proposed Rules]
[Page 27573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-4349]



  Federal Register / Vol. 71, No. 91 / Thursday, May 11, 2006 / 
Proposed Rules  

[[Page 27573]]


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DEPARTMENT OF THE TREASURY

31 CFR Part 50

RIN 1505-AB67


Terrorism Risk Insurance Program; TRIA Extension Act 
Implementation

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 amendments made to Title 
I of the Terrorism Risk Insurance Act of 2002 (TRIA or Act) \1\ by the 
Terrorism Risk Insurance Extension Act of 2005 (Extension Act).\2\ The 
Act established a temporary Terrorism Risk Insurance Program (Program) 
that was scheduled to expire on December 31, 2005, under which the 
Federal Government shared the risk of insured losses from certified 
acts of terrorism with commercial property and casualty insurers. The 
Extension Act extends the Program through December 31, 2007, and makes 
other changes which are implemented by this rule. In particular, the 
rule addresses changes to the types of commercial property and casualty 
insurance covered by the Act, the requirements to satisfy the Act's 
mandatory availability (``make available'') provision and the operation 
of the new ``Program Trigger'' provision in section 103(e)(1)(B) of the 
Act. This proposed rule proposes to adopt as a final rule the interim 
final rule published elsewhere in this issue of the Federal Register. 
The text of the interim final rule serves as the text of this proposed 
rule.
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    \1\ Pub. L. 107-297, 116 Stat. 2322, 15 U.S.C. 6701 note.
    \2\ Pub. L. 109-144, 119 Stat. 2660, 15 USCA 6701 note.

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DATES: Written comments may be submitted on or before June 12, 2006.

ADDRESSES: Submit comments by e-mail to [email protected] or by 
mail (if hard copy, preferably an original and two copies) to: 
Terrorism Risk Insurance Program, Public Comment Record, Suite 2100, 
Department of the Treasury, 1425 New York Avenue, NW., Washington, DC 
20220. Because paper mail in the Washington, DC area may be subject to 
delay, it is recommended that comments be submitted electronically. All 
comments should be captioned with ``TRIA Extension Act Proposed Rule 
Comments''. Please include your name, affiliation, address, e-mail 
address, and telephone number in your comment. Comments may also be 
submitted through the Federal eRulemaking Portal: http://www.regulations.gov. Comments will be available for public inspection 
by appointment only at the TRIP Office. To make appointments, call 
(202) 622-6770 (not a toll-free number).

FOR FURTHER INFORMATION CONTACT: Howard Leikin, Deputy Director, or 
David Brummond, Legal Counsel, Terrorism Risk Insurance Program (202) 
622-6770 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

I. The Proposed Rule

    Published elsewhere in this issue of the Federal Register is an 
interim final rule amending subparts A, B, C, F, and I to 31 CFR part 
50, which in part 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. Treasury is soliciting 
comments on all aspects of this proposed rule from all interested 
parties.

II. Procedural Requirements

    This proposed rule is not a significant regulatory action under the 
terms of Executive Order 12866. Pursuant to the Regulatory Flexibility 
Act (5 U.S.C. chapter 6), 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. Treasury is required 
to pay the Federal share of compensation to insurers for insured losses 
subject to the new Program Trigger provisions in the Act. The 
requirement that insurers seek advance approval of certain settlements 
is now required by the Act. 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 
losses 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 this proposed rule that revises 31 
CFR part 50 as follows: The text of subparts A, B, C, F, and I are 
revised to be the same as the text of subparts A, B, C, F, and I to 31 
CFR part 50 in the interim final rule published elsewhere in this issue 
of the Federal Register.

    Dated: May 4, 2006.
Emil W. Henry, Jr.,
Assistant Secretary of the Treasury.
[FR Doc. 06-4349 Filed 5-10-06; 8:45 am]
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