[Federal Register Volume 82, Number 47 (Monday, March 13, 2017)]
[Notices]
[Pages 13543-13547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04819]


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DEPARTMENT OF THE TREASURY


Information Collections for Claims Processing and Other Purposes 
Under the Terrorism Risk Insurance Program

AGENCY: Departmental Offices, Department of the Treasury.

ACTION: Request for comments.

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SUMMARY: The Secretary of the Treasury (Secretary) administers the 
Terrorism Risk Insurance Program (TRIP or Program), including the 
issuance of regulations and procedures regarding the Program. The 
Federal Insurance Office assists the Secretary in the administration of 
the Program. The Department of the Treasury (Treasury), as part of its 
continuing effort to reduce paperwork burdens, invites the general 
public and other Federal agencies to comment on: Approved information 
collections that are due for extension by the Office of Management and 
Budget (OMB) (under OMB 1505-0200); the extension of certain additional 
information collections previously approved by OMB that lapsed pending 
recent revisions to the Program Rules; and the approval of three new 
information collections that are authorized under recent revisions to 
the Program Rules.

DATES: Written comments must be received not later than May 12, 2017.

[[Page 13544]]


ADDRESSES: Interested persons may submit comments electronically 
through the Federal eRulemaking Portal at http://www.regulations.gov, 
in accordance with the instructions on that site. Electronic 
submissions are encouraged; however, comments may also be mailed to the 
Terrorism Risk Insurance Program, Room 1410, U.S. Department of the 
Treasury, 1500 Pennsylvania Avenue NW., Washington, DC 20220.
    All comments, including attachments and other supporting materials, 
are part of the public record and subject to public disclosure. You 
should submit only information that you wish to make available 
publicly. In general, the Department will post all comments to 
www.regulations.gov without change, including any business or personal 
information provided such as names, addresses, email addresses, or 
telephone numbers. The Department will also make such comments 
available for public inspection and copying in the Department of the 
Treasury's Library, Freedman's Bank Building, 720 Madison Place NW., 
Room 1020, Washington, DC 20220, on official business days between the 
hours of 10:00 a.m. and 5:00 p.m. Eastern Time. You can make an 
appointment to inspect comments by telephoning (202) 622-0990. All 
visitors to the Treasury must be cleared by the Secret Service. This 
process requires that requests for appointments must be made a minimum 
of one business day before a visit.

FOR FURTHER INFORMATION CONTACT: Richard Ifft, Senior Insurance 
Regulatory Policy Analyst, Federal Insurance Office, Room 1410, U.S. 
Department of the Treasury, 1500 Pennsylvania Avenue NW., Washington, 
DC 20220, at (202) 622-2922 (this is not a toll-free number), Kevin 
Meehan, Senior Insurance Regulatory Policy Analyst, Federal Insurance 
Office, Room 1410, U.S. Department of the Treasury, 1500 Pennsylvania 
Avenue NW., Washington, DC 20220, at (202) 622-7009 (this is not a 
toll-free number), or Lindsey Baldwin, Senior Policy Analyst, Federal 
Insurance Office, Room 1410, U.S. Department of the Treasury, 1500 
Pennsylvania Avenue NW., Washington, DC 20220, at (202) 622-3220 (this 
is not a toll-free number). Persons who have difficulty hearing or 
speaking may access this number via TTY by calling the toll-free 
Federal Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    The Terrorism Risk Insurance Act of 2002, as amended (TRIA),\1\ 
established the Terrorism Risk Insurance Program (TRIP or Program).\2\ 
The Act establishes a temporary federal program of shared public and 
private compensation for insured commercial property and casualty 
losses resulting from an ``act of terrorism,'' as defined by TRIA. In 
order for the Program to make payments, the losses from an event must 
exceed certain thresholds and be in excess of participating insurer 
deductibles. Only ``acts of terrorism'' that have been certified as 
such by the Secretary (in consultation with the Attorney General and 
the Secretary of Homeland Security) are subject to the compensation 
provisions of the Program. In the event Treasury does make payments 
under the Program, it may be required to recoup some or all of the 
Federal share of payments through surcharges imposed upon all 
commercial policyholders.
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    \1\ 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.
    \2\ See 31 CFR part 50.
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    Beginning after the inception of the Program in 2002, Treasury has 
previously sought and obtained from the Office of Management and Budget 
(OMB) approvals for certain information collections that will be 
necessary if Treasury is to process claims from participating insurers 
for the Federal share of compensation, and potentially to recoup 
amounts expended as authorized under TRIA. Most of these information 
collections are managed through forms that have been developed by 
Treasury to permit participating insurers to demonstrate that they are 
entitled to payment of the Federal share of compensation.
    In January 2015, the Terrorism Risk Insurance Program 
Reauthorization Act of 2015 (2015 Reauthorization Act) \3\ extended the 
Program until December 31, 2020. The 2015 Reauthorization Act reformed 
various operational matters respecting the Program. Among other 
changes, the 2015 Reauthorization Act mandated that Treasury issue 
final rules governing the certification process, and that Treasury 
collect from participating insurers such information and data as 
considered by the Secretary to be appropriate to analyze the 
effectiveness of the Program.\4\ In December 2016, Treasury issued 
revised Program rules incorporating the new financial and operational 
provisions mandated by the 2015 Reauthorization Act.\5\
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    \3\ Public Law 114-1, 129 Stat 3.
    \4\ Annual collections of information and data required by the 
2015 Reauthorization Act for analyses of the effectiveness of the 
Program are being addressed in a separate notice and comment 
process. See 81 FR 95310 (Dec. 27, 2016).
    \5\ See 81 FR 88592 (Dec. 7, 2016) (Certification Process 
Interim Final Rule); 81 FR 93756 (Dec. 21, 2016) (Final Rules 
governing balance of Program).
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    The changes to the Program rules require revisions to currently 
effective Program forms to incorporate terminology and regulatory 
reference changes, and Treasury seeks to extend these previously 
approved collections subject to these minor revisions. No additional 
burdens are imposed by these changes, either in terms of the estimates 
of the number of insurers affected or time burdens for compliance.\6\ 
None of the identified information will need to be reported unless 
there is a certified act of terrorism, and the insurer in question is 
seeking payment of the Federal share of compensation. The forms are 
designed to identify elements that insurers already regularly collect 
in their ordinary course of business when handling insurance claims, 
which will minimize any burden associated with their completion in the 
event an insurer submits a claim for payment of the Federal share of 
compensation.
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    \6\ The burden estimates set forth below are the same estimates 
previously used by Treasury when seeking approval of this 
information collection.
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    In addition, certain other information collections (relating to 
such Program administrative matters as the approval of certain 
settlement, and recoupment of the Federal share of compensation) lapsed 
pending finalization of the revised Program rules. Now that the revised 
Program rules are effective, Treasury seeks to reinstate these 
information collections subject to minor revisions. Again, no 
additional burdens would be imposed by these changes,\7\ and none of 
the identified information will need to be reported, if at all, unless 
there is certification of an act of terrorism. As is the case with the 
Program claims forms, these forms are designed to identify information 
that insurers already regularly collect in their ordinary course of 
business, which will minimize any burden associated with their 
completion.
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    \7\ The burden estimates set forth below are the same estimates 
previously used by Treasury when seeking approval of these 
information collections.
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    Finally, Treasury seeks approval for three additional information 
collections that are authorized and necessary under the revised Program 
rules. These collections: (1) Will permit (but not require) Treasury to 
obtain appropriate information directly from participating insurers 
during a certification process; (2) require claims reporting after 
certification of an act as an act of

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terrorism, so that Treasury can determine whether the Program Trigger 
threshold \8\ has been reached and respond promptly to claims for 
payment of the Federal share of compensation; and (3) provide for the 
production of information in connection with a commutation payment 
after the Secretary determines a final netting date when claims 
relating to any insured loss or act of terrorism shall become final.\9\ 
As with the existing Program forms, these forms are designed to 
identify elements that insurers regularly collect in their ordinary 
course of business when handling insurance claims, which will minimize 
any burden associated with their completion. In addition, with respect 
to the possibility of a certification data call, the Program rules 
permit Treasury to obtain any necessary data through other means, which 
may obviate the need for a data call.\10\
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    \8\ See 31 CFR 50.4(v).
    \9\ The burden estimates for these collections as set forth 
below were originally identified by Treasury in its Notice of 
Proposed Rulemaking leading to the recent revision of the Program 
Rules. See 81 FR 18950, 18958-59 (Apr. 1, 2016). Treasury did not 
receive any comments concerning these burden estimate figures.
    \10\ See 31 CFR 50.62(b).
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    Further information concerning each of these requirements is 
provided below.

II. Information Collections

A. Existing Information Collections

    OMB Number: 1505-0200.
    Title: Terrorism Risk Insurance Program; Commercial Property and 
Casualty Insurers Submission for Federal Share of Compensation.
    Abstract: This information collection addresses information that 
participating insurers must submit in support of their claims for 
payment of the Federal share of compensation. The forms identifying the 
information to be collected are as follows:

Treasury Form TRIP 01 (Notice of Deductible Erosion (formerly 
Initial Notice of Insured Loss))
Treasury Form TRIP 02 (Certification of Loss (Initial and 
Supplementary))
Treasury Form TRIP 02A Schedule A (Declaration of Direct Earned 
Premium and Calculation of Insurer Deductible)
Treasury Form TRIP 02B Schedule B (Certification of Compliance with 
Section 103(b) of TRIA)
Treasury Form TRIP 02B Schedule C (Bordereau)

    Type of Review: Extension of a currently approved data collection.
    Current Expiration Date: July 31, 2017.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 100.\11\
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    \11\ Although the number of insurers required to file claims 
will depend upon the size and nature of the event in question, 
Treasury has historically used a best estimate of 100 insurers that 
will have insured losses as a result of an act of terrorism that 
could lead to potential claims for payment of the Federal share of 
compensation under the Program.
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    Estimated Average Time per Respondent:
    Treasury Form TRIP 01: 1.0 hours x 1 response = 1 hours.
    Treasury Form TRIP 02 (Initial and Supplementary): 1.5 hours x 6 
responses = 9 hours.
    Treasury Form TRIP 02A Schedule A: 6.5 hours x 1 response = 6.5 
hours.
    Treasury Form TRIP 02B Schedule B: 0.25 hours x 6 responses = 1.5 
hours.
    Treasury Form TRIP 02B Schedule C: 4 hours x 6 responses = 24 
hours.
    Estimated Total Annual Burden Hours: 4,200 hours.\12\
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    \12\ The burden estimate includes assumptions as to the number 
of times each form will need to be completed by an insurer making 
claims for payment of the Federal share of compensation, as 
identified above (e.g., including an estimate that on average the 
forms relating to specific claims experience will be submitted six 
times), resulting in total hours for each of the 100 insurers of 42 
hours.
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B. Reinstatements of Previously Approved Information Collections

    Former OMB Number: 1505-0196.
    Title: Terrorism Risk Insurance Program; Litigation Management--
Information Collection Regarding Proposed Settlements.
    Abstract: This information collection addresses settlement approval 
requirements under the Program that were initially adopted by Treasury 
by regulation \13\ and subsequently incorporated by Congress as part of 
TRIA.\14\ For third-party claims that are in excess of certain 
thresholds, Treasury must provide advance approval of the settlement 
before it is finalized by the participating insurer. The information 
collection provides Treasury with the necessary information to evaluate 
claims subject to this advance approval requirement. The form 
memorializing the collection is Treasury Form TRIP 03 (Notice of 
Proposed Settlement of Third Party Claim--Request for Approval).
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    \13\ Currently codified at 31 CFR 50.102.
    \14\ TRIA Sec.  107(a)(6).
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    Type of Review: Reinstatement of a previously approved information 
collection.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 100.
    Estimated Average Time per Respondent: 4.0 hours (per proposed 
settlement based upon likely number of settlements triggering 
requirement).
    Estimated Total Annual Burden Hours: 5,144 hours.\15\

    \15\ These estimates, like the estimates for the Program claim 
forms, are based upon assumptions as to the number of times the form 
will need to be completed. Those assumptions are: (1) Each of the 
100 insurers will have 100 claims (or 10,000 in total), (2) 1 in 7 
claims will involve amounts above the approval threshold (or 1,429 
claims), and (3) 90% of those claims will be settled, and thus 
trigger settlement approval reporting (1,286). That figure, applied 
against the 4 hours estimated to complete the form, results in the 
total figure of 5,144 hours. The reporting burden on insurers has 
not changed, but the numbers have been corrected here due to a 
previous rounding error.
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    Former OMB Number: 1505-0197.
    Title: Recordkeeping Requirements for Insurers Compensated Under 
Terrorism Risk Insurance Program.
    Abstract: This requirement is for the maintenance (recordkeeping) 
of an insurer's records that are pertinent to claims for reimbursement 
by participating insurers and amounts paid by Treasury as the Federal 
share of compensation for insured losses. The recordkeeping is needed 
for Treasury to conduct investigations, confirmations, and audits, as 
required. 31 CFR 50.81 requires insurers to retain all records 
necessary to fully disclose material matters pertaining to insured 
losses. This record retention requirement is not subject to any common 
form or generalized reporting.
    Type of Review: Reinstatement of a previously approved data 
collection.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 100.
    Estimated Average Time per Respondent: 8.33 hours.\16\
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    \16\ Includes assumptions as to the number of claims that will 
be received for which some marginal additional costs (estimated to 
be 5 minutes per claim) will be incurred by the affected insurer.
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    Estimated Total Annual Burden Hours: 833 hours.

    Former OMB Number: 1505-0207.
    Title: Recoupment Provisions of the Terrorism Risk Insurance Act 
(TRIA).
    Abstract: Section 103(a) of TRIA authorizes Treasury to recoup 
federal payments made under the Program through policyholder 
surcharges, as directed in the statute. In order to determine the 
amount of recoupment necessary, as well as implement any mandatory 
recoupment process, Treasury may issue a data call for aggregate loss 
information. If Treasury implements a recoupment process, all insurers 
subject to TRIA will be required to create and maintain records 
concerning their direct written premium, surcharges, surcharge amounts 
collected, and surcharge amounts remitted to Treasury and submit 
information to Treasury on a

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monthly basis. The forms identifying the information to be collected 
are as follows:

Treasury Form TRIP 04A (Direct Written Premium and Monthly Surcharge 
Calculation)
Treasury Form TRIP 04B (Direct Written Premium and End of Year 
Calculation)
Treasury Form TRIP 05 (Data Call)

    Type of Review: Reinstatement of a previously approved data 
collection.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 2,000 (TRIP 04A and TRIP 04B 
recoupment processing) and 200 (TRIP 05 data call).
    Estimated Average Time per Respondent:
    Treasury Forms TRIP 04A and TRIP 04B: 5 hours per month (60 hours 
per year).
    Treasury Form TRIP 05: 5 hours.
    Estimated Total Annual Burden Hours: 120,000 hours (TRIP 04A and 
TRIP 04B), and 1,000 hours (TRIP 05).

    Former OMB Number: 1505-0208.
    Title: Terrorism Risk Insurance Program; Cap on Annual Liability.
    Abstract: The Program is subject to a total annual cap of aggregate 
industry losses of $100 billion, and Treasury is directed under TRIA to 
advise Congress within 15 days of an ``act of terrorism'' whether 
estimated total losses are expected to exceed the cap. In order to 
comply with the liability cap provisions of TRIA, Treasury may conduct 
a data call for insured loss and deductible information to accurately 
assess aggregate industry losses and determine if the $100 billion cap 
could be exceeded, as well as to determine and adjust the ``pro rata 
loss percentage'' to be applied against claim payments. The form 
identifying the information to be collected is Treasury Form TRIP 05 
(Terrorism Risk Insurance Program; Data Call).
    Type of Review: Reinstatement of a previously approved data 
collection.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 200.
    Estimated Average Time per Respondent: 5 hours.
    Estimated Total Annual Burden Hours: 1,000 hours.

C. New Information Collections

    OMB Number: New.
    Title: Terrorism Risk Insurance Program; Certification Data Call.
    Abstract: In order for the Secretary to determine whether an event 
is subject to certification as an ``act of terrorism'' under TRIA and 
31 CFR 50.62, Treasury may collect loss data and estimates from 
affected insurers in order to confirm that losses are above statutory 
thresholds. The information collection includes both actual loss data, 
as well as estimates that may be generated in the immediate aftermath 
of an event which do not constitute loss data but which could 
nonetheless inform the certification determination. The form 
identifying the information to be collected is Treasury Form TRIP 06 
(Certification Data Call).
    Type of Review: New data collection.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 20.
    Estimated Average Time per Respondent: 15 hours.
    Estimated Total Annual Burden Hours: 300 hours.

    OMB Number: New.
    Title: Terrorism Risk Insurance Program; Monthly Claims Report.
    Abstract: Payments of the Federal share of compensation require 
that aggregate industry losses reach a certain threshold, even if the 
losses of a particular insurer are in excess of its deductible. 
Pursuant to 31 CFR 50.53, the monthly claims report provides for 
truncated monthly reporting of losses so that Treasury may evaluate 
loss experience as it develops, and make timely payments to insurers 
entitled to the Federal share of compensation. The report will enable 
payments to smaller insurers that cannot demonstrate, based upon their 
own losses, that Program Trigger amounts have been reached. The form 
memorializing the collection is Treasury Form TRIP 07 (Monthly Claims 
Report). The report has been tailored to seek the minimal amount of 
information necessary to confirm total industry payment amounts and 
estimates, and requests far less information than will be necessary for 
insurers to submit claims for payment of the Federal share of 
compensation.
    Type of Review: New data collection.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 100.
    Estimated Average Time per Respondent: 2 hours (each month over a 
48-month period).
    Estimated Total Annual Burden Hours: 9,600 hours.\17\

    \17\ The burden estimate includes the assumption that the 
monthly report will need to be competed each month over a 48-month 
period (estimated to be the period over which claims are likely to 
be reported and resolved), or 96 hours per each insurer and 9,600 
hours for all insurers combined.
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    OMB Number: New.
    Title: Terrorism Risk Insurance Program; Commutations under Final 
Netting Rule.
    Abstract: Under 31 CFR 50.76(d), the Secretary may set a final 
netting date, at which time all claims relating to an insured loss or 
act of terrorism become final. As part of a final netting 
determination, Treasury may require or consider a request for a 
commutation of an insurer's future claims for the Federal share of 
compensation. This process could require the insurer to produce 
information justifying a final payment estimate, including supporting 
actuarial factors and methodology. This information collection is not 
subject to any common form or generalized reporting requirement, as it 
will necessarily be tailored to the circumstances presented by a 
particular insurer and insured loss, which will need to be determined 
at the time any particular commutation process takes place.
    Type of Review: New data collection.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 15.
    Estimated Average Time per Respondent: 40 hours.
    Estimated Total Annual Burden Hours: 600 hours.
    All of the forms and associated instructional materials are 
available for review on Treasury's Web site at https://www.treasury.gov/resource-center/fin-mkts/Pages/program.aspx.
    Request for Comments: An agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless the collection of information displays a valid OMB control 
number. Comments submitted in response to this notice will be 
summarized and/or included in the request for OMB approval. All 
comments will become a matter of public record. Comments are invited 
on: (a) Whether the collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
the information shall have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information 
collections; (d) ways to minimize the burden of the collection of 
information on respondents, including through the use of 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 provide information.


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    Dated: March 7, 2017.
Brian J. Peretti,
Director, Critical Infrastructure Protection and Compliance Policy.
[FR Doc. 2017-04819 Filed 3-10-17; 8:45 am]
BILLING CODE 4810-25-P