This information collection is made
necessary by the provisions of the Terrorism Risk Insurance Program
Reauthorization Act of 2015 (Public Law 114-1, 129 Stat. 3). On
November 26, 2002, the President signed into law the Terrorism Risk
Insurance Act of 2002 (Public Law 107-297, 116 Stat. 2322) (the
Act). The Act’s purposes are to address market disruptions, ensure
the continued widespread availability and affordability of
commercial property and casualty insurance for terrorism risk, and
to allow for a transition period for the private markets to
stabilize and build capacity while preserving state insurance
regulation and consumer protections. Title I of 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
(Program), including the issuance of regulations and procedures.
The Program provides a federal backstop for insured losses from an
act of terrorism. Although the Program was originally set to expire
on December 31, 2005, it has now been extended and amended on three
occasions; most recently, 2015 Reauthorization Act extended the
Program through December 31, 2020. Section 111 of the 2015
Reauthorization Act provides that the Secretary of the Treasury,
commencing in the calendar year beginning on January 1, 2016, shall
require insurers participating in the Program to submit information
regarding insurance coverage for terrorism losses in order to
analyze the effectiveness of the Program. Section 111(h)(2) of the
2015 Reauthorization Act requires the Secretary to submit a report
by June 30, 2016 to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on the overall effectiveness of the
Program, among other things. Proposed rules addressing data
collection are now pending OMB review. Treasury seeks emergency
clearance and review for the 2016 data collection only, as the
normal public review and comment processes will not permit the
collection of data under the proposed rules in time for Treasury to
complete a June 30, 2016 Report to Congress. Treasury intends to
make the initial request voluntary on the part of participating
insurers. Each entity that meets the Act’s definition of insurer
(based upon existing information, over 2000 individual firms,
within approximately 800 separate insurance groups) must
participate in the Program. The data collection for which Treasury
seeks emergency clearance could result in responses from all
participating insurers, although some smaller number of entities
will likely respond to the initial data collection
request.
Emergency Justification:
The U.S. Department of the Treasury’s Federal Insurance Office
(which assists the Secretary of the Treasury in the administration
of the Terrorism Risk Insurance Program (TRIP)) submits to the
Office of Management and Budget (OMB), for emergency clearance and
review, the TRIP Data Collection Template for CY 2016, in
accordance with 5 C.F.R. 1320.13. An expedited clearance by OMB of
the aforementioned data collection template is essential to the
mission of the U.S. Department of the Treasury. Treasury cannot
reasonably comply with the normal clearance procedures because the
normal clearance procedures are likely to delay the collection of
data beyond the time necessary for Treasury to complete a report
required under the Terrorism Risk Insurance Program Reauthorization
Act of 2015 (2015 Reauthorization Act). Since the reauthorization,
Treasury has consulted extensively with interested insurers, state
insurance departments, and other stakeholders in order to develop a
data collection protocol and associated implementing rules that
would identify necessary information relevant to Treasury’s need to
issue reports concerning the effectiveness of TRIP, which could be
provided by insurers from existing data and systems. Proposed rules
concerning data collection that will apply for the balance of the
period for which TRIP has been reauthorized are now pending review
at OMB. The public review and comment process associated with the
proposed rules, however, will not permit the collection of data
under those rules, once finalized, during 2016 in time for Treasury
to submit a June 30, 2016 Report to Congress required under the
2015 Reauthorization Act. Subsequent data collections required
under the 2015 Reauthorization Act will be conducted pursuant to
the proposed rules, once finalized, and normal Paperwork Reduction
Act review processes. For the 2016 collection only, Treasury
requests that OMB approve this request for emergency clearance so
that Treasury may begin the data collection in February, in time to
have the necessary information for its June 30, 2016 Report.
PL:
Pub.L. 114 - 1 111 Name of Law: Terrorism Risk Insurance
Program Reauthorization Act of 2015
PL:
Pub.L. 107 - 297 103 Name of Law: Terrorism Risk Insurance Act
of 2002
PL:
Pub.L. 109 - 144 103 Name of Law: Terrorism Risk Insurance
Extension Act of 2005
PL:
Pub.L. 110 - 160 103 Name of Law: Terrorism Risk Insurance
Program Reauthorization Act of 2007
PL: Pub.L. 114 - 1 111 Name of Law: Terrorism
Risk Insurance Program Reauthorization Act of 2015
Section 111 of the 2015
Reauthorization Act provides that the Secretary of the Treasury,
commencing in the calendar year beginning on January 1, 2016, shall
require insurers participating in the Program to submit information
regarding insurance coverage for terrorism losses in order to
analyze the effectiveness of the Program. Section 111(h)(2) of the
2015 Reauthorization Act requires the Secretary to submit a report
by June 30, 2016 to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on the overall effectiveness of the
Program, among other things. Proposed rules addressing data
collection are now pending OMB review.
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.
Form 1 Collection of Data from Property and Casualty Insurers for a Report on the Effectiveness of the Terrorism Risk Insurance Program - Small Insurers
BILLS-114hr26enr_TRIPRA.pdf
PRA Supporting Statement for 2016 Data Collection (Revised).doc
Collection of Data from Property and Casualty Insurers for a Report on the Effectiveness of the Terrorism Risk Insurance Program - Small Insurers