FINAL_3133-0098_Supporting_Statement_092816

Supporting Statement

National Credit Union Administration

Advertising of Excess Insurance, 12 CFR 740.3

OMB No. 3133-0098

A. JUSTIFICATON

1. Circumstances that make the collection necessary:

Part 740 applies to all federally insured credit unions (FICUs) and prescribes requirements for the official signage insured credit unions must display and requirements regarding the advertising statement they must include in their advisements. Part 740 also establishes requirements for advertisements of excess insurance. According to 12 U.S.C 1785(a)(1), each FICU shall display signs relating to the insurance of the share accounts in according to regulations to be prescribed by the Board. The NCUA Board codified these disclosure requirements of advertising of excess insurance under §740.3.

2. Use of the information:

Requirements of §740.3, Advertising of excess insurance, prescribes that FICUs must disclose in advertising the share or savings account insurance provided by a party other than NCUA. This disclosure statement must include the identity of the carrier, the type and amount of such insurance and must avoid any statement or implication that the carrier is affiliated with NCUA or the federal government. The disclosure requirements under §740.3 are necessary to ensure that share account holders are aware that their accounts are insured by carriers other than the NCUA.

3. Consideration of the use of improved information technology

This is a disclosure requirement; and may include print and electronic media advertising.

4. Efforts to identify duplication

This collection of information is unique to each FICU and is not duplicated anywhere.

5. Minimize burden on substantial number of small entities

This collection does not have a significant impact on a substantial number of small credit unions.

6. Consequences to the Federal program if the collections were conducted

If this information were not disclosed, customers would not be aware that their shares are covered by a carrier other than NCUA.

7. Special circumstances inconsistent with 5 CFR 1320.5(d)(2)

There are no special circumstances. The information collections is conducted in a manner consistent with the requirements of 5 CFR 1320.5(d)(2).

8. Efforts to consult with persons outside the agency

A 60-day day notice was published in the Federal Register August 3, 2016, at 81 FR 51215, soliciting comments from the public. NCUA did not receive any comments regarding the collection.

9. Payment or gifts to respondents

No payments or gifts are provided to respondents.

10. Assurance of confidentiality

This is a disclosure requirement; therefore, the collection does not require any assurances of confidentiality.

11. Questions of a sensitive nature

No personally identifiable information (PII) is collected.

12. Burden estimate:

# Respondents	# Responses per Respondent	# Annual Response	Hours Per Response	Total Annual Burden	Cost to Respondents (Based on hourly wage rate of $35.00)
300	1	300	1	300	$10,500

13. Estimates of capital start-up and maintenance costs

There are no capital start-up or maintenance costs.

14. Estimates of annualized cost to the Federal Government

There are no costs to the Government.

15. Changes in burden:

This is a reinstatement of a previously approved collection. Adjustments primarily reflect a reduction in the number of respondents due to a decline in the number of FICUs. In addition, the increase in the standard maximum share insurance amount from $100,000 to $250,000, made permanent in 2010, has likely reduced demand for federally-insured credit unions to seek excess coverage.

16. Information regarding collections whose results are planned to be published for statistical use:

No data will be published for statistical purposes.

17. Display of expiration date:

The OMB control number and expiration date associated with this PRA submission will be displayed on the Federal government’s electronic PRA docket at www.reginfo.gov.

18. Exceptions to certification statement:

There are no exceptions to the certification statement.

B. COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS

This collection does not employ statistical methods.

OMB No. 3133-0098, October 2016 4