[Federal Register Volume 84, Number 65 (Thursday, April 4, 2019)]
[Notices]
[Pages 13392-13394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06618]


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DEPARTMENT OF THE TREASURY


2019 Data Call Under the Terrorism Risk Insurance Program

AGENCY: Departmental Offices, U.S. Department of the Treasury.

ACTION: Data Collection.

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SUMMARY: Pursuant to the Terrorism Risk Insurance Act of 2002 (TRIA), 
insurers that participate in the Terrorism Risk Insurance Program (TRIP 
or Program) are directed to submit information for the 2019 TRIP Data 
Call for the reporting period from January 1, 2018 to December 31, 
2018. Participating insurers are required to register and report 
information in a series of forms approved by the Office of Management 
and Budget (OMB). All insurers writing commercial property and casualty 
insurance in lines subject to TRIP must respond to this data call no 
later than May 15, 2019, subject to certain exceptions identified in 
this notice.

DATES: Participating insurers must register and submit data no later 
than May 15, 2019.

ADDRESSES: Participating insurers will register through a website that 
has been established for this data call. After registration, insurers 
will receive data collection forms through a secure file transfer 
portal, and they will submit the requested data through the same secure 
portal. Participating insurers can register for the 2019 TRIP Data Call 
at https://tripsection111data.com/. Additional information about the 
data call, including sample data collection forms and instructions, can 
be found on the TRIP website at https://www.treasury.gov/resource-center/fin-mkts/Pages/TRIP_data.aspx.

FOR FURTHER INFORMATION CONTACT: Richard Ifft, Senior Insurance 
Regulatory Policy Analyst, Federal Insurance Office, Room 1410 MT, 
Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 
20220, at (202) 622-2922 (this is not a toll-free number), or Lindsey 
Baldwin, Senior Policy Analyst, Federal Insurance Office, Room 1410 MT, 
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 these numbers via TTY by 
calling the toll-free Federal Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

[[Page 13393]]

I. Background

    TRIA \1\ created the Program within the U.S. Department of the 
Treasury (Treasury) 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 market to stabilize and 
build insurance capacity to absorb any future losses for terrorism 
events. The Program has been reauthorized on a number of occasions, 
most recently in the Terrorism Risk Insurance Program Reauthorization 
Act of 2015 (2015 Reauthorization Act).\2\ Section 111 of the 2015 
Reauthorization Act \3\ (Section 111) requires the Secretary of the 
Treasury (Secretary) to perform periodic analyses of the Program. In 
order to assist the Secretary with this process, Section 111 requires 
insurers to submit on an annual basis certain insurance data and 
information regarding their participation in the Program.\4\ The 
Federal Insurance Office (FIO) is authorized to assist the Secretary in 
the administration of the Program,\5\ including conducting the annual 
data call.
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    \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 United States Code, the 
provisions of TRIA are identified by the sections of the law.
    \2\ Public Law 114-1, 129 Stat. 3.
    \3\ TRIA sec. 104(h).
    \4\ Treasury regulations also address the annual data collection 
requirement. See 31 CFR 50.51, 50.54.
    \5\ 31 U.S.C. 313(c)(1)(D).
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    On November 9, 2018, Treasury published the data collection forms 
that it proposed to use in the 2019 TRIP Data Call, and invited the 
public to provide comments concerning these forms.\6\ Treasury received 
two comments.\7\ In response, and as discussed further below, Treasury 
has made a number of modifications to the forms and instructions. OMB 
has approved the use of these forms under Control Number 1505-0257.
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    \6\ 83 FR 56152 (Nov. 9, 2018).
    \7\ Treasury received comments from the Sentry Insurance Group 
and AIR Worldwide. The comments are available at https://www.regulations.gov/docket?D=TREAS-TRIP-2018-0026.
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II. Changes to 2019 Data Call

    For purposes of the 2019 TRIP Data Call, FIO, state insurance 
regulators, and the National Association of Insurance Commissioners 
(NAIC) will again utilize the consolidated data call mechanism first 
developed for use in the 2018 TRIP Data Call. This approach relies upon 
four (4) joint reporting templates--to be completed by Small Insurers, 
Non-Small Insurers, Alien Surplus Lines Insurers, and Captive Insurers, 
as identified further below--and is designed to satisfy the regulatory 
objectives of both Treasury and state insurance regulators. 
Additionally, the joint reporting templates reduce burden on 
participating insurers. State insurance regulators and/or the NAIC will 
provide separate notification regarding the reporting of information 
into the state reporting portal, including any supplemental information 
reporting requirements to state insurance regulators separate from what 
is required by Treasury.

A. Reporting Process

    Insurers subject to the consolidated data call will report on a 
group basis, unless they are not part of a group, in which case they 
will report on an individual company basis. For the 2019 Data Call, 
Treasury will again work with the National Council on Compensation 
Insurance (NCCI), the California Workers' Compensation Insurance Rating 
Bureau (California WCIRB), and the New York Compensation Insurance 
Rating Board (NYCIRB) to provide (either directly or through other 
workers' compensation rating bureaus), on behalf of participating 
insurers, the workers' compensation insurance elements of the data call 
relating to premium and payroll information. The data aggregator used 
by Treasury will provide such insurers with reporting templates that do 
not require them to report this workers' compensation data. Reporting 
insurers that only write workers' compensation policies are still 
required to register for the data call, provide general company 
information, and provide data related to private reinsurance. The data 
received from NCCI, the California WCIRB, and/or the NYCIRB will be 
merged with the information provided by the insurers.

B. Reporting Templates

    There are two principal changes to the reporting templates from the 
2018 TRIP Data Call. First, the exposures worksheet, which is included 
within all four reporting templates, has been modified to include 
questions seeking information on policy limits for nuclear, biological, 
chemical, and radiological (NBCR) exposures, as a subset of the total 
reported policy limits covering terrorism risk. Second, a new modeled 
loss question (which includes an NBCR component) is included on the 
reinsurance worksheet that will be completed by non-small insurers, 
alien surplus lines insurers, and captive insurers.\8\
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    \8\ See generally 83 FR 56152, 56152-53 (Nov. 9, 2018). Small 
insurers complete a separate reinsurance worksheet that does not 
contain a modeled loss question.
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    The comments received posed a number of questions concerning the 
manner of reporting contemplated under the proposed reporting 
templates, including the connection between the federal and state data 
calls. Although the comments concerning the manner of reporting did not 
indicate any changes to the forms or instructions that should be made, 
Treasury will provide further instructions concerning the completion of 
the forms through webinars that it will conduct, particularly in 
connection with the new data elements for NBCR insurance limits. In 
addition, Treasury has made minor changes to the forms as originally 
proposed to correct typographical errors and to make language 
consistent across forms.
    Furthermore, one comment suggested a number of changes to the 
modeled loss question. In response to this comment, Treasury made a 
number of changes to the modeled loss question, designed to make it 
easier for reporting insurers to respond to the hypothetical scenario 
presented.
    There are also a number of template changes required by the Program 
regulations that are specific to individual insurer categories. For the 
2019 TRIP Data Call, an insurer will qualify as a small insurer if it 
had both 2017 policyholder surplus of less than $800 million and 2017 
direct earned premiums in TRIP-eligible lines of insurance of less than 
$800 million.\9\ Of this group, small insurers with TRIP-eligible 
direct earned premiums of less than $10 million in 2018 will be exempt 
from the 2019 TRIP Data Call.\10\ Neither captive insurers nor alien 
surplus lines insurers are eligible for this reporting exemption. 
Insurers defined as small insurers for the 2019 Data Call will report 
the same information to Treasury (on a group basis) and state insurance 
regulators (also on a group basis), except as state insurance 
regulators may

[[Page 13394]]

separately direct for purposes of the state data call.
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    \9\ Small insurers are defined in 31 CFR 50.4(z) as insurers (or 
an affiliated group of insurers) whose policyholder surplus for the 
immediately preceding year is less than five times the Program 
Trigger for the current year, and whose TRIP-eligible lines direct 
earned premium for the previous year is also five times less than 
the Program Trigger. Accordingly, for the 2019 Data Call, an insurer 
qualifies as a small insurer if its 2017 policyholder surplus and 
2017 direct earned premium are less than five times the 2018 Program 
Trigger of $160 million.
    \10\ Individual insurers with less than $10 million in TRIP-
eligible lines direct earned premium that are part of a larger group 
must still report as part of the group as a whole, if the group's 
TRIP-eligible lines direct earned premium is over $10 million.
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    The non-small insurer template will be completed by insurance 
groups (or individual insurers not affiliated with a group) that had 
either a 2017 policyholder surplus of greater than $800 million or 2017 
direct earned premium in TRIP-eligible lines of insurance equal to or 
greater than $800 million, and that are not subject to reporting on the 
captive insurer or alien surplus lines insurer reporting templates. 
Otherwise, insurers defined as non-small insurers for the 2019 Data 
Call will report the same information to Treasury (on a group basis) 
and state insurance regulators (also on a group basis), except as state 
insurance regulators may separately direct for purposes of the state 
data call.
    The reporting template for captive insurers does not contain 
additional changes specific to those insurers. Captive insurers are 
defined in 31 CFR 50.4(g) as insurers licensed under the captive 
insurance laws or regulations of any state. Captive insurers that wrote 
policies in TRIP-eligible lines of insurance during the reporting 
period are required to register and submit data to Treasury, unless 
they did not provide their insureds with any terrorism risk insurance 
subject to the Program.
    The reporting template for alien surplus lines insurers does not 
contain additional changes specific to those insurers. Alien surplus 
lines insurers are defined in 31 CFR 50.4(o)(1)(i)(B) as insurers not 
licensed or admitted to engage in the business of providing primary or 
excess insurance in any state, but that are eligible surplus line 
insurers listed on the NAIC Quarterly Listing of Alien Insurers. Alien 
surplus lines insurers that are part of a larger group classified as a 
non-small insurer or a small insurer should report to Treasury as part 
of the group, using the appropriate template. Therefore, the alien 
surplus lines insurer template should only be used by an alien surplus 
lines insurer that is not part of a larger group subject to the 2019 
Data Call.

C. Supplemental Reference Documents

    Treasury will continue to make available on its data collection 
website (https://www.treasury.gov/resource-center/fin-mkts/Pages/TRIP_data.aspx) documents providing a complete ZIP code listing for 
areas subject to reporting on the Geographic Exposures (Nationwide) 
worksheet, as well as several hypothetical policy reporting scenarios.

D. Training Webinars

    As in prior years, Treasury will hold four (4) separate training 
sessions corresponding to the four reporting templates that will be 
used by insurers (Alien Surplus Lines Insurers, Captive Insurers, 
Insurer (Non-Small) Groups or Companies, and Small Insurers). The 
webinars will be held on April 9 and April 10, 2019 to assist reporting 
insurers in responding to the proposed collection, with each webinar 
focusing on a specific reporting template. Specific times and details 
concerning participation in the webinar will be made available on the 
TRIP data collection website, and recordings of each webinar will be 
made available on the website following each training session.

III. 2019 TRIP Data Call

    For the 2019 TRIP Data Call, which covers the reporting period of 
January 1, 2018 to December 31, 2018, Treasury will continue to use 
four different data collection templates.\11\ Insurers will fill out 
the template for ``Insurer (Non-Small) Groups or Companies,'' unless 
the insurer meets the definition of a small insurer, captive insurer, 
or alien surplus insurer, as set forth in 31 CFR 50.4. Such small 
insurers, captive insurers, and alien surplus lines insurers are 
required to complete an alternate template.
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    \11\ See 31 CFR 50.51(c).
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    Treasury, through an insurance statistical aggregator, will accept 
group or insurer registration forms through https://tripsection111data.com/. Upon registration, the aggregator will 
transmit individualized data collection forms (in Excel format) to the 
reporting group or insurer via a secure file transfer portal. The 
reporting group or insurer may transmit a complete data submission via 
the same portal using either the provided Excel forms or a .csv 
file.\12\
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    \12\ Specifications for submission of data using a .csv file 
will be provided to the insurer by the aggregator.
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    Copies of the instructions and data collection forms are available 
on Treasury's website in read-only format. Reporting insurers will 
obtain the fillable reporting forms directly from the data aggregator 
after registering for the data collection process.
    Reporting insurers are required to register and submit complete 
data to Treasury no later than May 15, 2019. Because of the timing and 
content of Treasury's 2019 report to Congress, no extensions will be 
granted. Reporting insurers can ask the data aggregator questions about 
registration, form completion, and submission through 
[email protected]. Treasury, as identified above, may also be 
contacted directly with questions. Questions regarding submission of 
data to state insurance regulators or the property supplement should be 
directed to the appropriate state insurance regulator or the NAIC.
    All data submitted to the aggregator is subject to the 
confidentiality and data protection provisions of TRIA and the Program 
Rules, as well as to section 552 of title 5, United States Code, 
including any exceptions thereunder. In accordance with the Paperwork 
Reduction Act, (44 U.S.C. 3501 et seq.), the information collected 
through the web portal has been approved by OMB under Control Number 
1505-0257. An agency may not conduct or sponsor and a person is not 
required to respond to a collection of information unless it displays a 
valid OMB control number.

    Dated: March 29, 2019.
Steven E. Seitz,
Director, Federal Insurance Office.
[FR Doc. 2019-06618 Filed 4-3-19; 8:45 am]
BILLING CODE 4810-25-P