Pools and Associations - Annual Letter

DEPARTMENT OF THE TREASURY
BUREAU OF THE FISCAL SERVICE
WASHINGTON, DC 20227
February 27, 2019
TO EXECUTIVE OFFICERS OF POOLS AND ASSOCIATIONS RECOGNIZED BY THE U. S.
DEPARTMENT OF THE TREASURY:
The Treasury Department annually examines the December 31, financial statements of surety companies
holding Certificates of Authority from the Treasury. As a result of this examination, an underwriting
limitation is established for each company, based on the reported Policyholders' Surplus. When
establishing a company's underwriting limitation, adjustments may be made to its surplus based on
reinsurance (as reported on Schedule F) that has been placed with companies, pools and associations
not recognized by Treasury. This disallowance applies even if the reinsurance does not cover surety
bonds and regardless of whether the United States is involved.
The Treasury recognizes pools and associations as Admitted Reinsurers to the extent of the
percentage of participation by Treasury authorized companies in each association.
In the past, some companies holding a Certificate of Authority have reported reinsurance ceded to your
association in the Schedule F of their financial statement. In order for these companies to continue to
receive credit for such reinsurance, the Treasury needs the names of the member companies of your
association and their percentage of participation. Please use the attached form to report
participants and their percentages. Information in any other format may not be accepted by this
office. This enclosure is also available for downloading from our internet address listed below. For
future mailings, you can provide us with your company name and email address by sending it to
[email protected]. Please state on the Subject line, “Pools and Associations”.
If you wish Treasury recognition of your pool or association to continue, please indicate on the
enclosure, the respective company's percentage of participation as a member of your pool or
association and return to this office, by August 15, 2019. Also independent loss reserve certifications
should be provided as soon as they are available for 2015 reporting purposes. The attached form should
be completed and emailed to:
[email protected]
If you do not wish Treasury recognition of your pool or association to continue, please email the above
address or visit our website to reach an employee. The list of recognized Pools and Associations will be
published as of September 30, 2019. It is, therefore, essential that the requested information be
submitted on time.
Sincerely,

Melvin Saunders
Supervisor
Surety Bond Section
Attachment

***THE SURETY BOND SECTION ONLY ACCEPTS ELECTRONIC SUBMISSIONS
OF DOCUMENTS***
INTERNET ADDRESS www.fiscal.treasury.gov/fsreports/ref/suretyBnd/surety_home.htm

OMB No. 1530-0007

PAPERWORK REDUCTION ACT AND PRIVACY ACT STATEMENT
By authority of 31 USC 9304-9308, and 31 CFR Part 223, the information requested in this letter is required to retain or
obtain a benefit and to enable the Assistant Commissioner, Management, Bureau of the Fiscal Service, Department of the
Treasury, to determine if your Pool or Association desires to be recognized or continue its recognition as an acceptable
reinsurer on non-Federal bonds. Pools and Associations are requested to file this information with the Treasury Department
annually. Failure to provide this information will cause non-recognition by Treasury of the Pool or Association.

BURDEN ESTIMATE STATEMENT

We estimate it will take you about 1 hour 30 minutes to complete this form. However, you are not required to provide
information requested unless a valid OMB control number is displayed on the form. Any comments or suggestions
regarding this form should be sent to the Bureau of the Fiscal Service, Forms Management Officer, Parkersburg, WV
26106-1328. DO NOT SEND completed form to this address; send to the address shown in "WHERE TO
SEND" in the Instructions.