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 Actâs 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 Actâs 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 Treasuryâs 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 Treasuryâs 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