Section 103(e) of the Terrorism Risk Insurance Act of 2002 gives Treasury authority to recoup federal payments made under the Program through policyholder surcharges, up to a maximum annual limit. The Secretary is required to provide for insurers to collect these amounts and remit them to Treasury. In order to determine how and when to initiate the recoupment process Treasury will require information about industry aggregate total insured losses, insurer deductibles and reserves and may need to issue a Âdata call to supplement existing industry reporting. If recoupment is initiated, insurers will be required to report and remit the Federal Terrorism Policy Surcharge. Treasury will require access to all books, documents, papers and records of an insurer that are pertinent to the Surcharge for the purpose of investigation, confirmation, audit and examination. The record keeping and reporting requirements will arise only after Treasury has initiated the recoupment process. This clearance action is for the data call, insurer reporting and record keeping requirements. Keywords: Terrorism Risk Insurance.
PL:
Pub.L. 109 - 144 -
Name of Law: Terrorism Risk Insurance Extension Act of 2005
PL:
Pub.L. 110 - 160 -
Name of Law: Terrorism Risk Insurance Program Reauthorization Act of 2007
PL:
Pub.L. 107 - 297 103
Name of Law: Terrorism Risk Insurance Act of 2002
PL: Pub.L. 110 - 160 103(e) Name of Law: Terrorism Risk Insurance Program Reauthorization Act of 2007
The Terrorism Risk Insurance Act (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. The Act authorizes Treasury to administer and implement the Terrorism Risk Insurance Program (the Program), including the issuance of regulations and procedures. The Program provides a Federal backstop for insured losses from an act of terrorism. Section 103(e) of the Act gives Treasury authority to recoup federal payments made under the Program through policyholder surcharges, up to a maximum annual limit. Treasury is now issuing a final rule that describes how Treasury will determine the amounts to be recouped, including the provision for a Âdata call for aggregate insured loss information, the factors and considerations that would be the basis for establishing the specific surcharge amount, describes the procedures for TreasuryÂs notification to insurers regarding the surcharges to be imposed, and establishes the requirements for insurers to collect, report and remit surcharges to the Treasury.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Recoupment Provisions of the Terrorism Risk Insurance Act - Recordkeeping