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 data 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 data 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 Treasurys 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