[Federal Register Volume 75, Number 145 (Thursday, July 29, 2010)]
[Notices]
[Pages 44756-44757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18664]


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

DEPARTMENT OF AGRICULTURE

Risk Management Agency


Notice of Request for Revision of a Currently Approved 
Collection.

AGENCY: Risk Management Agency, USDA.

ACTION: Revision of a Currently Approved Collection; comment request.

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

SUMMARY: In accordance with the Paperwork Reduction Act of 1995, this 
notice announces a public comment period on the information collection 
requests (ICRs) associated with the Standard Reinsurance Agreement and 
Appendices I, II and IV administered by Federal Crop Insurance 
Corporation (FCIC). Appendix III is excluded because it contains the 
Data Acceptance System requirements.

DATES: Written comments on this notice will be accepted until close of 
business, September 27, 2010.

ADDRESSES: Interested persons are invited to submit written comments to 
David L. Miller, Director, Reinsurance Services Division, Federal Crop 
Insurance Corporation, United States Department of Agriculture (USDA), 
1400 Independence Avenue, SW., Stop 0804, Washington, DC 20250. Written 
comments may also be submitted electronically to: 
[email protected].

FOR FURTHER INFORMATION CONTACT: David L. Miller, Director, Risk 
Management Agency, at the address listed above, telephone (202) 720-
9830.

SUPPLEMENTARY INFORMATION:
    Title: Standard Reinsurance Agreement; Appendices I, II and IV.
    OMB Number: 0563-0069.
    Type of Request: Revised and new Information Collection.
    Abstract: The Federal Crop Insurance Act (Act), Title 7 U.S.C. 
Chapter 36, Section 1508(k), authorizes the FCIC to provide reinsurance 
to insurers approved by FCIC that insure producers of any agricultural 
commodity under one or more plans acceptable to FCIC. The Act also 
states that the reinsurance shall be provided on such terms and 
conditions as the Board may determine to be consistent with subsections 
(b) and (c) of this section and sound reinsurance principles.
    FCIC executes the same form of reinsurance agreement, called the 
Standard Reinsurance Agreement (SRA), with sixteen participating 
insurers approved for the 2011 reinsurance year. Appendix I of the SRA, 
Regulatory Duties and Responsibilities, sets forth the company's 
responsibilities as required by statute. Appendix II of the SRA, the 
Plan of Operations (Plan), sets forth the information the insurer is 
required to file with RMA for each reinsurance year they wish to 
participate. The Plan's information enables RMA to evaluate the 
insurer's financial and operational capability to deliver the crop 
insurance program in accordance with the Act. Estimated premiums by 
fund by state, and retained percentages along with current 
policyholders surplus are used in calculations to determine whether to 
approve the insurer's requested maximum reinsurable premium volume for 
the reinsurance year per 7 CFR part 400 subpart L. This information has 
a direct effect upon the insurer's amount of retained premium and 
associated liability and is required to calculate the insurer's 
underwriting gain or loss.
    Appendix IV of the SRA, Quality Control and Program Integrity, 
establishes the minimum annual agent and loss adjuster training 
requirements, and quality control review procedures and performance 
standards required of the insurance companies. FCIC requires each 
insurer to submit, for each reinsurance year, a Quality Control Report 
to FCIC containing details of the results of their completed reviews. 
The insurance companies must also provide an annual Training and 
Performance Evaluation Report which details the evaluation of each 
agent and loss adjuster and reports of any remedial actions taken by 
the Company to correct any error or omission or ensure compliance with 
the SRA.
    Since the currently approved information collection package does 
not account for new information collections implemented in the 2011 
reinsurance year, we are asking the Office of Management and Budget 
(OMB) to approve this revised information collection activity for 3 
years.
    The purpose of this notice is to solicit comments from the public 
concerning this information collection activity as associated with the 
SRA in effect for the 2011 and subsequent reinsurance years. These 
comments will help us:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information has practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, through use, as appropriate, of automated, 
electronic, mechanical, and other collection technologies, e.g., 
permitting electronic submission of responses.
    The SRA includes Conflict of Interest data collection, which in 
addition to the insurance companies reinsured by FCIC, encompasses the 
insurance companies' employees and their contracted agents and loss 
adjusters. The SRA also includes a Controlled Business data collection 
from all employed or

[[Page 44757]]

contracted agent. The estimate below shows the burden that will be 
placed upon the following affected entities.
    Estimate of Burden: The public reporting burden for the collection 
of Appendix II information is estimated to average 162 hours per 
response.
    Respondents/Affected Entities: Insurance companies reinsured by 
FCIC.
    Estimated annual number of respondents: 16.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 16.
    Estimated total annual burden on respondents (hours): 2,592.
    Estimate of Burden: The public reporting burden for the Appendix I 
collection of Conflict of Interest information is estimated to average 
1 hour per response.
    Respondents/Affected Entities: Approved Insurance Provider's 
employees and their contracted agents and loss adjusters.
    Estimated annual number of respondents: 20,800.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 20,800.
    Estimated total annual burden on respondents (hours): 20,800.
    Estimate of Burden: The public reporting burden for the Appendix I 
collection of Controlled Business information is estimated to average 1 
hour per response.
    Respondents/Affected Entities: Approved Insurance Provider's 
employed and contracted agents.
    Estimated annual number of respondents: 15,000.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 15,000.
    Estimated total annual burden on respondents (hours): 15,000.
    Estimate of Burden: The public reporting burden for the Appendix IV 
annual Training and Performance Evaluation Report and Quality Control 
Report is estimated to average 16 hours per response.
    Respondents/Affected Entities: Insurance companies reinsured by 
FCIC.
    Estimated annual number of respondents: 16.
    Estimated annual number of responses per respondent: 1.
    Estimated annual number of responses: 16.
    Estimated total annual burden on respondents (hours): 256.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments will also become a matter of 
public record.

    Signed in Washington, DC, on July 26, 2010.
William J. Murphy,
Administrator, Federal Crop Insurance Corporation.
[FR Doc. 2010-18664 Filed 7-28-10; 8:45 am]
BILLING CODE 3410-08-P