SupportingStatement2023

National Credit Union Administration

SUPPORTING STATEMENT

Advertising of Excess Insurance, 12 CFR Part 740.3

OMB No. 3133-0098

A. JUSTIFICATON

1. Circumstances that make the collection of information 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. Purpose and use of the information collection:

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. Use of information technology:

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

4. Duplication of information:

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

5. Efforts to reduce burden on small entities:

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

6. Consequences of not conducting the collection:

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

7. Inconsistencies with guidelines in 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 30-day notice was published in the Federal Register on January 27, 2023, at 88 FR 5384, soliciting comments from the public. No public comments were received in response to this notice.

9. Payment or gifts to respondents:

There is no intent by NCUA to provide payment or gifts to respondents.

10. Assurance of confidentiality:

There is no assurance of confidentiality other than that provided by law.

11. Questions of a sensitive nature:

No personally identifiable information (PII) is collected.

12. Burden of information collection:

# Respondents	# Responses per Respondent	# Annual Response	Hours Per Response	Total Annual Burden
291	1	291	1	291

Based on the labor rate of $35 per hour, the total cost to respondents is $10,185.

13. Capital start-up or ongoing operation and maintenance costs:

There are no capital start-up or maintenance costs.

14. Annualized cost to the Federal Government:

There are no costs to the Federal government.

15. Changes in burden:

This is an extension of a currently approved collection. There has been an adjustment in the number of respondents due to updated data since the last previous submission.

16. Information collection planned for statistical purposes:

The information collection is not planned for statistical purposes.

17. Request non-display the expiration date of the OMB control number:

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 for Paperwork Reduction Act Submissions:

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, January 2023 4