[Federal Register Volume 88, Number 158 (Thursday, August 17, 2023)]
[Notices]
[Pages 56123-56126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-17679]


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DEPARTMENT OF THE TREASURY


Information Collections for Claims Processing and Other Purposes 
Under the Terrorism Risk Insurance Program (Extension of Currently 
Approved Data Collections Under OMB No. 1505-0200)

AGENCY: Departmental Offices, Department of the Treasury.

ACTION: Notice and 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 (FIO) 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 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), relating 
to claims processing and other administrative matters under the 
Program.

DATES: Written comments must be received not later than October 16, 
2023.

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 MT 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, Treasury 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. Treasury will also make such comments available for 
public inspection and copying in 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, Lead Management and 
Senior Insurance Policy Analyst, Terrorism Risk Insurance Program, 
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), Sherry Rowlett, Program Analyst, 
Federal Insurance Office, Room 1410, U.S. Department of the Treasury, 
1500 Pennsylvania Avenue NW, Washington, DC 20220, at (202) 622-1890 
(this is not a toll-free number), or Annette Burris, Senior Insurance 
Regulatory Policy Analyst, Federal Insurance Office, Room 1410, U.S. 
Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 
20220, at (771) 215-6900 (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 or the 
Act),\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 following a certified 
``act of terrorism,'' 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, through surcharges imposed upon all commercial 
policyholders, to recoup some or all of any amounts expended.
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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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    Since the inception of the Program in 2002, Treasury has sought and 
obtained from the Office of Management and Budget (OMB) approvals for 
information collections that will be necessary if Treasury needs to 
process claims for the Federal share of compensation, and potentially 
recoup amounts expended as required under TRIA.\3\ 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 payments for the Federal share of 
compensation. In some cases (as explained further in this Notice), the 
information collection is not subject to a specific form but is based 
upon circumstances that may develop in the future, in the event the 
Program is triggered, or might be triggered, by the Secretary's 
certification of an act of terrorism.
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    \3\ Annual collections of information and data, outside of the 
claims process, that are required under TRIA are addressed in a 
separate notice and comment process, under OMB Control No. 1505-
0257.
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    In December 2019, the Terrorism Risk Insurance Program 
Reauthorization Act of 2019 extended the Program until December 31, 
2027.\4\ Therefore, to administer the Program, Treasury needs to 
continue the existing information collections to permit the receipt and

[[Page 56124]]

resolution of claims, and potential recoupment of amounts expended by 
Treasury. Treasury seeks to extend these previously approved 
collections without change. Treasury has updated the burden estimates 
associated with the renewal of the existing forms or collection 
obligations to account for the current number of insurers participating 
in the Program, based upon the best information now available to 
Treasury. As there are no proposed changes to the current forms or 
collection obligations, there are no changes to the previously 
estimated time burdens associated with the completion of those forms 
and collection obligations. None of the identified information 
collections will be triggered unless there is a certified act of 
terrorism (including the claims information that an insurer seeking 
payment of the Federal share of compensation would need to provide), or 
in some cases where Treasury is considering certification of an act of 
terrorism. Treasury has designed the forms to identify elements that 
insurers typically collect already in their ordinary course of business 
when handling insurance claims, which will minimize any burden 
associated with their completion.
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    \4\ Public Law 116-94, 133 Stat 2534.
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    Further information concerning each of these requirements is 
provided below.

II. Information Collections

A. Existing Information Collections Under 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)
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: November 30, 2023.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 100.\5\
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    \5\ The number of insurers required to file claims will depend 
upon the size and nature of the event in question. Treasury has 
historically estimated that 100 insurers will have insured losses as 
a result of a certified 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.\6\
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    \6\ The burden estimate includes assumptions regarding the 
number of times each form will need to be completed by an insurer 
making claims for the Federal share of compensation, as identified 
above, resulting in total hours for each of the 100 insurers of 42 
hours.
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    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 and subsequently incorporated by Congress within TRIA. 
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 advance approval. The form identifying the information to be 
collected is as follows:
    Treasury Form TRIP 03 (Notice of Proposed Settlement of Third-Party 
Claim--Request for Approval).
    Type of Review: Extension of a currently approved data collection.
    Current Expiration Date: November 30, 2023.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 100.
    Estimated Average Time per Respondent: 4.0 hours.
    Estimated Total Annual Burden Hours: 5,144 hours.\7\
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    \7\ Based upon the assumptions that: (1) each of the 100 
insurers will have 100 claims (10,000 in total), (2) that 1 in 7 
claims will involve amounts above the approval threshold (1,429 
claims in total), and (3) 90 percent of those claims will be 
settled, and thus trigger settlement approval reporting (1,286 
claims in total). This estimate of the number of claims that will 
require settlement approval reporting of 1,286, multiplied by 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.
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    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 relevant 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(a) 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: Extension of a currently approved data collection.
    Current Expiration Date: November 30, 2023.
    Estimated Number of Respondents: 100.
    Estimated Average Time per Respondent: 8.33 hours.\8\
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    \8\ This calculation includes assumptions regarding 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.
    Title: Surcharge Records Maintenance.
    Abstract: This requirement is for the maintenance (recordkeeping) 
of an insurer's records that are relevant to any surcharges collected 
and remitted by insurers to Treasury. The recordkeeping is needed for 
Treasury to conduct investigations, confirmations, and audits, as 
required. 31 CFR 50.81(b) requires insurers to retain all records 
necessary to fully disclose material matters pertaining to the 
collection of surcharges. This record retention requirement is not 
subject to any common form or generalized reporting.
    Type of Review: Extension of a currently approved data collection.
    Current Expiration Date: November 30, 2023.
    Estimated Number of Respondents: 2,250.\9\
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    \9\ Treasury has historically used a figure of 2,000 insurers to 
approximate the number of individual insurance companies (as 
distinguished from groups) participating in the Program, for 
purposes of information collections that could apply to all 
participating insurers on an individual basis. Based upon the most 
recent available information, that figure may still generally 
approximate the number of participating domestic and alien surplus 
lines insurers but does not fully account for the number of 
participating captive insurers. The most recent statistical data 
reported by insurers to state regulators identifies approximately 
1,850 individual insurers writing some positive amount of premium in 
TRIP-eligible lines of insurance. The most recent (April 2023) NAIC 
Quarterly Listing of Alien Insurers identifies approximately 160 
individual qualified companies and syndicates. To account for the 
number of companies not actively writing insurance or not writing in 
the TRIP-eligible lines, Treasury estimates that the total number of 
reporting insurers would be about 100. Finally, about 600 captive 
insurers annually report information to Treasury. While there are 
likely further captive insurers that would be required to make 
recoupment filings beyond those who report in the annual data calls, 
Treasury also estimates that the burden on captive insurers will be 
far less, because they issue much fewer policies overall, and 
captives are more likely to issue policies at a specific time of the 
year, such that the burdens of the recoupment documentation will be 
less. To account for these lesser burdens, Treasury estimates that 
using a figure of 300 captives for burden estimate purposes will 
account for both the lesser reporting burden as well as the possible 
additional number of reporting captives in excess of 600. Based upon 
this analysis, Treasury estimates that the number of implicated 
insurers is 2,250 insurers (1,850 + 100 + 300).

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[[Page 56125]]

    Estimated Average Time per Respondent: 4 hours.
    Estimated Total Annual Burden Hours: 9,000 hours.
    Title: Recoupment Provisions of the Terrorism Risk Insurance Act 
(TRIA).
    Abstract: Section 103(e) of TRIA extends authority to Treasury to 
conduct mandatory and discretionary recoupment (depending upon the 
circumstances presented) of federal payments made under the Program 
through policyholder surcharges. In order to determine the amount of 
recoupment that may be necessary, as well as implement any recoupment 
process that is required, Treasury may issue a data call for aggregate 
loss information. Accordingly, 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. 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: Extension of a currently approved data collection.
    Current Expiration Date: November 30, 2023.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 2,250 (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: 135,000 hours (TRIP 04A and 
TRIP 04B), and 1,000 hours (TRIP 05).
    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 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 be 
required to conduct a data call for insured loss and deductible 
information to assess aggregate industry losses and determine if the 
$100 billion cap may 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 as follows:
    Treasury Form TRIP 05 (Terrorism Risk Insurance Program; Data 
Call).
    Type of Review: Extension of a currently approved data collection.
    Current Expiration Date: November 30, 2023.
    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.
    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 need to 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 that do not constitute loss data but could inform the 
certification determination. The form identifying the information to be 
collected is:
    Treasury Form TRIP 06 (Certification Data Call).\10\
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    \10\ Although potentially available for the collection of 
information, the Certification Data Call will not need to be 
utilized if Treasury is able to confirm that statutory thresholds 
will, or will not, be met through other means. See 31 CFR 50.62(b).
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    Type of Review: Extension of a currently approved data collection.
    Current Expiration Date: November 30, 2023.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 20.
    Estimated Average Time per Respondent: 15 hours.
    Estimated Total Annual Burden Hours: 300 hours.
    Title: Terrorism Risk Insurance Program; Monthly Claims Report.
    Abstract: Treasury payments of the Federal share of compensation 
require that average 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 the Program Trigger amount has been reached. The form 
identifying the information to be collected is as follows:
    Treasury Form TRIP 07 (Monthly Claims Report).
    Type of Review: Extension of a currently approved data collection.
    Current Expiration Date: November 30, 2023.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 100.
    Estimated Average Time per Respondent: 2 hours.
    Estimated Total Annual Burden Hours: 9,600 hours.\11\
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    \11\ The burden estimate includes the assumption that the 
monthly report will need to be completed each month over a 48-month 
period as all claims are resolved. Each monthly report will take 2 
hours during this 48-month period, resulting in 96 hours per each 
insurer, or 9,600 hours for all 100 insurers combined.
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    Title: Terrorism Risk Insurance Program; Commutations under Final 
Netting Rule
    Abstract: Under 31 CFR 50.76(b), 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 the request of a 
particular insurer 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

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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, which will need to be determined at the time any particular 
commutation process takes place.
    Type of Review: Extension of a currently approved data collection.
    Current Expiration Date: November 30, 2023.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 15.
    Estimated Average Time per Respondent: 40 hours.
    Estimated Total Annual Burden Hours: 600 hours.
    Title: Terrorism Risk Insurance Program; Rebuttal of Controlling 
Influence Submissions.
    Abstract: Treasury has promulgated procedures at 31 CFR 50.7 for an 
insurer to follow in seeking to rebut a regulatory presumption of 
``controlling influence'' over another insurer (which, because of the 
way in which the Program operates, would affect the amount of direct 
earned premium attributable to the insurer's deductible calculation). 
These procedures require insurers to provide Treasury necessary 
information to determine whether a ``controlling influence'' exists, 
and if it does, whether it has been rebutted. 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 the ``controlling influence'' issue presented by a 
particular insurer. No assurance of confidentiality is provided, 
although applicable exemptions under the Freedom of Information Act 
could apply, e.g., to any confidential business or trade secret 
material submitted.
    Type of Review: Extension of a currently approved data collection.
    Current Expiration Date: November 30, 2023.
    Affected Public: Business/Financial Institutions.
    Estimated Number of Respondents: 10.
    Estimated Average Time per Respondent: 40 hours.
    Estimated Total Annual Burden Hours: 400 hours.
    All of the forms and associated instructional materials (none of 
which are changing on account of this renewal) are available for review 
on Treasury's website at https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/federal-insurance-office/terrorism-risk-insurance-program/federal-share-claim-process.
    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.

Steven E. Seitz,
Director, Federal Insurance Office.
[FR Doc. 2023-17679 Filed 8-16-23; 8:45 am]
BILLING CODE 4810-25-P