[Federal Register Volume 85, Number 51 (Monday, March 16, 2020)]
[Notices]
[Pages 15036-15038]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05299]


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

DEPARTMENT OF THE TREASURY


2020 Terrorism Risk Insurance Program Data Call

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

ACTION: Data Collection.

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

SUMMARY: Pursuant to the Terrorism Risk Insurance Act of 2002, as 
amended (TRIA),\1\ insurers that participate in the Terrorism Risk 
Insurance Program (TRIP or Program) are directed to submit information 
for the 2020 TRIP Data Call, which covers the reporting period from 
January 1, 2019 to December 31, 2019. 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, subject to certain exceptions identified in this notice, must 
respond to this data call no later than May 15, 2020.
---------------------------------------------------------------------------

    \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.

DATES: Participating insurers must register and submit data no later 
---------------------------------------------------------------------------
than May 15, 2020.

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 2020 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://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/annual-data-collection.

FOR FURTHER INFORMATION CONTACT: Richard Ifft, Senior Insurance 
Regulatory Policy Analyst, Federal Insurance Office, Room 1410, 
Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 
20220, (202) 622-2922; or Lindsey Baldwin, Senior Insurance Regulatory 
Policy Analyst, Federal Insurance Office, Room 1410, Department of the 
Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 20220, (202) 622-
3220. 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:

I. Background

    TRIA 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, with various 
requirements directed to Treasury in connection with the Program. Most 
recently, the Program was reauthorized until December 31, 2027 by the 
Terrorism Risk Insurance Program Reauthorization Act of 2019 (2019 
Reauthorization Act),\2\ which was signed into law on December 20, 
2019. Section 111 of the previous reauthorization, the Terrorism Risk 
Insurance Program Reauthorization Act of 2015 (2015 Reauthorization 
Act),\3\ amended Section 104 of TRIA to require the Secretary of the 
Treasury (Secretary) to perform periodic analyses of the Program and 
submit a report regarding the effectiveness of the Program to Congress 
not later than June 30 every other year (Program Effectiveness 
Report).\4\ In order to assist the Secretary with this process, Section 
104 of TRIA requires insurers to submit on an annual basis certain 
insurance data and information regarding their participation in the 
Program.\5\ The 2019 Reauthorization Act recently broadened the areas 
that Treasury must analyze to include the availability and 
affordability of terrorism risk insurance, including for places of 
worship. The Federal Insurance Office (FIO) is authorized to assist the 
Secretary in the administration of the Program,\6\ including conducting 
the annual data call.
---------------------------------------------------------------------------

    \2\ Public Law 116-94, 133 Stat. 2534.
    \3\ Public Law 114-1, 129 Stat. 3.
    \4\ For the most recent Program Effectiveness Report, issued in 
June 2018, see Federal Insurance Office, Report on the Effectiveness 
of the Terrorism Risk Insurance Program, available at https://www.treasury.gov/initiatives/fio/reports-and-notices/Documents/2018_TRIP_Effectiveness_Report.pdf. The next Program Effectiveness 
Report must be submitted to Congress no later than June 30, 2020.
    \5\ Treasury regulations also address the annual data collection 
requirement. See 31 CFR 50.51, 50.54.
    \6\ 31 U.S.C. 313(c)(1)(D).
---------------------------------------------------------------------------

    Prior to the enactment of the 2019 Reauthorization Act, Treasury 
intended to utilize the same data collection forms, without material 
changes, that had been approved for use by OMB under Control Number 
1505-0257 for a period ending March 31, 2022. However, Treasury must 
collect certain additional information in order to comply with the 
requirement under the 2019 Reauthorization Act to analyze the 
availability and affordability of terrorism risk insurance, including 
for places of worship.
    Treasury would not have sufficient time to complete the notice and 
comment periods associated with the standard OMB review process for new 
data collections before submitting its Program Effectiveness Report to 
Congress by the statutory deadline of June 30, 2020. As a result, 
Treasury obtained emergency approval from OMB to use an additional 
worksheet seeking information concerning places of worship. This 
worksheet must be completed by all categories of reporting insurers, 
unless they are otherwise exempt from reporting. Reporting insurers 
that are not exempt from reporting, but do not write any insurance 
policies for places of worship, will need to enter ``0'' in the 
relevant fields in the worksheet. After the 2020 TRIP Data Call 
reporting period is complete, Treasury will submit the places of 
worship worksheet (and any further material modifications to the

[[Page 15037]]

data collection reporting templates) for public notice and comment in 
advance of the 2021 TRIP Data Call.

II. Elements of 2020 TRIP Data Call

    For purposes of the 2020 TRIP Data Call, FIO, state insurance 
regulators, and the National Association of Insurance Commissioners 
(NAIC) will again use the consolidated data call mechanism first 
developed for use in the 2018 TRIP Data Call. This approach relies on 
four joint reporting templates--to be completed by Small Insurers, Non-
Small Insurers, Captive Insurers, and Alien Surplus Lines Insurers, as 
defined below--and is designed to satisfy the objectives of both 
Treasury and state insurance regulators. Additionally, the joint 
reporting templates reduce burden on participating insurers. State 
insurance regulators or the NAIC will provide separate notification 
regarding the reporting of information into the state reporting portal, 
including any reporting requirements to state insurance regulators that 
are distinct from the Treasury requirements. Insurers subject to the 
consolidated data call that are part of a group will report on a group 
basis, while those that are not part of a group will report on an 
individual company basis.

A. Reporting of Workers' Compensation Information

    The TRIP Data Calls request certain information relating to 
workers' compensation insurance. For the 2020 TRIP 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 workers' compensation data relating to 
premium and payroll information on behalf of participating insurers, 
either directly or through other workers' compensation rating bureaus. 
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 2020 TRIP 
Data Call, provide general company information, and provide data 
related to private reinsurance. The data received from NCCI, the 
California WCIRB, and the NYCIRB will be merged with the information 
provided by the insurers.

B. Reporting Templates

    Other than the new Places of Worship Worksheet, there are no 
material changes to the reporting templates from the 2019 TRIP Data 
Call.\7\ The Places of Worship Worksheet is similar to the Policyholder 
Industry Code Worksheet currently used by TRIP. Both worksheets seek 
information on a nationwide, rather than state jurisdiction, basis. All 
categories of insurers are required to complete the Places of Worship 
Worksheet, unless otherwise exempt from reporting entirely.\8\ For the 
Places of Worship Worksheet, reporting insurers are given the option of 
reporting the information on places of worship using the various 
industry codes associated with religious organizations,\9\ or by using 
some other basis (e.g., a manual policyholder search by the reporting 
insurer).
---------------------------------------------------------------------------

    \7\ There is a new modeled loss scenario identified in the 
Reinsurance Worksheet that will be used in connection with the 
modeled loss questions (which have not changed from those posed in 
prior data collections). The modeled loss questions must be 
completed by non-small insurers, alien surplus lines insurers, and 
captive insurers. As in prior years, small insurers complete a 
separate Reinsurance Worksheet that does not contain modeled loss 
questions.
    \8\ Reporting insurers that are not exempt, but do not write any 
insurance for places of worship, only need to enter ``0'' in the 
relevant fields.
    \9\ As is the case with other aspects of the TRIP Data Calls, 
Treasury permits reporting by reference to either the North American 
Industry Classification System (NAICS), the Standard Industrial 
Classification (SIC), or the class codes utilized for reporting to 
Insurance Services Office (ISO).
---------------------------------------------------------------------------

    The Places of Worship Worksheet, like the other worksheets used in 
the TRIP Data Calls, seeks certain information relating to workers' 
compensation insurance. NCCI, the California WCIRB, and the NYCIRB will 
complete the workers' compensation elements of the Places of Worship 
Worksheet on behalf of reporting insurers. Further information 
concerning the Places of Worship Worksheet can be found in the 
instructions for the reporting templates for each category of insurer, 
and will also be addressed in the training webinars discussed below.
    For the 2020 TRIP Data Call, an insurer will qualify as a Small 
Insurer if it had both 2018 policyholder surplus of less than $900 
million and 2018 direct earned premiums in TRIP-eligible lines of 
insurance of less than $900 million.\10\ Of this group, Small Insurers 
with TRIP-eligible direct earned premiums of less than $10 million in 
2019 will be exempt from the 2020 TRIP Data Call.\11\ Neither Captive 
Insurers nor Alien Surplus Lines Insurers are eligible for this 
reporting exemption. Insurers defined as Small Insurers for the 2020 
TRIP Data Call will report the same information to Treasury and to 
state insurance regulators (in each case on a group basis), except as 
state insurance regulators may separately direct for purposes of the 
state data call.
---------------------------------------------------------------------------

    \10\ 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 premiums for the preceding year are also less than five times 
the Program Trigger for the current year. Accordingly, for the 2020 
TRIP Data Call (covering the 2019 calendar year), an insurer 
qualifies as a Small Insurer if its 2018 policyholder surplus and 
2018 direct earned premiums are less than five times the 2019 
Program Trigger of $180 million.
    \11\ Individual insurers with less than $10 million in TRIP-
eligible lines direct earned premiums 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 premiums are over $10 
million.
---------------------------------------------------------------------------

    The Non-Small Insurer template will be completed by insurance 
groups (or individual insurers not affiliated with a group) that are 
not subject to reporting on the Captive Insurer or Alien Surplus Lines 
Insurer reporting templates, and had either a 2018 policyholder surplus 
of greater than $900 million or 2018 direct earned premiums in TRIP-
eligible lines of insurance equal to or greater than $900 million. 
Insurers defined as Non-Small Insurers for the 2020 TRIP Data Call will 
report the same information to Treasury and to state insurance 
regulators (in each case on a group basis), except as state insurance 
regulators may separately direct for purposes of the state data call.
    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 (January 1, 2019 to December 31, 2019) 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.
    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 2020 TRIP Data Call.

C. Supplemental Reference Documents

    Treasury will continue to make available on the TRIP data 
collection

[[Page 15038]]

website \12\ 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.
---------------------------------------------------------------------------

    \12\ See https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/annual-data-collection.
---------------------------------------------------------------------------

D. Training Webinars

    As in prior years, Treasury will hold four separate training 
sessions corresponding to the four reporting templates that will be 
used by insurers (Small Insurers, Non-Small Insurers, Captive Insurers, 
and Alien Surplus Lines Insurers). The webinars will be held on April 
13 and April 14, 2020 to assist reporting insurers in responding to the 
2020 TRIP Data Call, with each webinar focusing on a specific reporting 
template. Specific times and details concerning participation in the 
webinars 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. 2020 TRIP Data Call

    Treasury, through an insurance statistical aggregator, will accept 
group or insurer registration forms through https://tripsection111data.com. Registration is mandatory for all insurers 
participating in the 2020 TRIP Data Call. 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.\13\
---------------------------------------------------------------------------

    \13\ Specifications for submission of data using a .csv file 
will be provided to the insurer by the aggregator.
---------------------------------------------------------------------------

    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 
only after registering for the data collection process.
    Reporting insurers are required to register and submit complete 
data to Treasury no later than May 15, 2020. Because of the statutory 
reporting deadline for Treasury's 2020 Program Effectiveness Report to 
Congress, no extensions will be granted. Reporting insurers can ask the 
data aggregator questions about registration, form completion, and 
submission at [email protected]. Reporting insurers may also 
submit questions to the Treasury contacts listed above. Questions 
regarding submission of data to state insurance regulators 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. 3501-3521), 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 9, 2020.
Steven E. Seitz,
Director, Federal Insurance Office.
[FR Doc. 2020-05299 Filed 3-13-20; 8:45 am]
 BILLING CODE 4810-25-P