Terrorism Risk Insurance Program 2019 Data Call
Request for comments.
Citation: "83 FR 56152"
Page Number: "56152"
"Notices"
Agency: "
SUMMARY: Pursuant to the Terrorism Risk Insurance Act of 2002 (TRIA),1 the Federal Insurance Office (FIO) requests public feedback on the proposed data collection forms for use in the 2019 Terrorism Risk Insurance Program Data Call (2019 TRIP Data Call). As was the case in connection with the 2018 TRIP Data Call, these forms will be utilized in connection with both the federal and state data calls regarding terrorism risk insurance. Copies of these forms and associated explanatory materials (including a document identifying specific changes to the reporting templates and instructions as previously used by
DATES:
Submit comments on or before
ADDRESSES: Submit comments electronically through the Federal eRulemaking Portal: http://www.regulations.gov, or by mail to the Federal Insurance Office, Attn:
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Background and Proposed Consolidated Approach TRIA created the Terrorism Risk Insurance Program (Program) within the
FOOTNOTE 2 Public Law 114-1, 129 Stat. 3. END FOOTNOTE
FOOTNOTE 3 TRIA sec. 104(h). END FOOTNOTE
FOOTNOTE 4 31 U.S.C. 313(c)(1)(D). END FOOTNOTE
FOOTNOTE 5 81 FR 11649 (
FOOTNOTE 6 A reporting exemption was extended to small insurers that wrote less than
FOOTNOTE 7 82 FR 20420 (
FOOTNOTE 8
Insurers subject to the consolidated data call will report on a group basis, if part of a group, and otherwise will report on an individual company basis.
II. Changes to Data Collection Templates
Pursuant to Section 111 of the 2015 Reauthorization Act,
After coordinating with state insurance regulators,
There are two principal changes to the proposed reporting templates for 2019. First, the exposures worksheet, which is included within all four reporting templates, will now include separate questions seeking information on the limits available under the policies of responding insurers for nuclear, biological, chemical and radiological (NBCR) exposures, as a subset of the total reported policy limits. Second, the reinsurance worksheet that is required for non-small insurers, alien surplus lines insurers, and captive insurers will include a new modeled loss question (which includes an NBCR component). /9/ In addition to these changes, the instructions for each reporting template will contain certain clarifications on how to report specific data elements.
FOOTNOTE 9 Small insurers complete a separate reinsurance worksheet that does not contain a modeled loss question. END FOOTNOTE
Otherwise, the reporting threshold for a small insurer has changed as well. For the 2019 TRIP Data Call (requesting insurer data for calendar year 2018), an insurer will qualify as a small insurer if it had both 2017 policyholder surplus and 2017 direct earned premiums in the TRIP-eligible lines of insurance of less than
FOOTNOTE 10 Small insurers are defined in 31 CFR 50.4(z) as insurers (or an affiliated group of insurers) whose policyholder surplus for the immediately preceding year is less than five times the Program Trigger for the current year, and whose TRIP-eligible lines direct earned premiums for the previous year is also five times less than the Program Trigger. Accordingly, for the 2019 TRIP Data Call, an insurer qualifies as a small insurer if its 2017 policyholder surplus and 2017 direct earned premiums are less than five times the 2018 Program Trigger of
FOOTNOTE 11 Captive insurers are defined in 31 CFR 50.4(g) as insurers licensed under the captive insurance laws or regulations of any state. As in 2018, captive insurers that write policies in TRIP-eligible lines of insurance are required to report in 2019, unless they do not provide their insureds with any terrorism risk insurance subject to the Program. END FOOTNOTE
FOOTNOTE 12 Alien surplus lines insurers are defined in 31 CFR 50.4(o)(1)(i)(B) as insurers not licensed or admitted to engage in the business of providing primary or excess insurance in any state, but that are eligible surplus line insurers listed on the NAIC Quarterly Listing of Alien Insurers. Alien surplus lines insurers that are part of a larger group classified as a non-small insurer or a small insurer should report as part of the group, using the appropriate template. Therefore, the alien surplus lines insurer template should only be used by an alien surplus lines insurer that is not part of a larger group subject to the 2019 data call. END FOOTNOTE
FOOTNOTE 13 To the extent an insurer with less than this level of TRIP-eligible lines direct earned premiums is part of a larger group that is required to report, the insurer must report as part of the group as a whole, even if it is under the
Reporting insurers can satisfy both the federal and state reporting obligations by completing the proposed collection forms, and separately submitting identical copies to the federal and state reporting portals. State insurance regulators will provide their own guidance regarding the submission of data to the state reporting portal.
III. Submission of Data
Following registration with the data aggregator, all insurers will be provided with the appropriate reporting templates for completion through a secure web portal established by the data aggregator. Insurers will be required to submit the completed reporting templates through the same, secure web portal. All data must be provided no later than
Reporting under the 2019 TRIP Data Call will be mandatory for all commercial property and casualty insurers writing insurance in lines subject to TRIA, unless the insurer falls within the exceptions for certain small insurers and captive insurers identified above.
IV. Request for Comments
To ensure efficient and accurate completion of the forms,
V. Procedural Requirements
Paperwork Reduction Act. The collection of information contained in this notice will be submitted to the
Comments are being sought with respect to the collection of information in the proposed 2019 TRIP Data Call.
Each set of reporting templates is expected to incur a different level of burden. The changes to the proposed data reporting elements in 2019 are not anticipated to have a material impact on
Assuming this breakdown, and when applied to the number of reporting insurers anticipated in light of the experience of the 2018 TRIP Data Call, the estimated annual burden would be 41,250 hours ((100 insurers x 75 hours) + (200 insurers x 25 hours) + (550 insurers x 50 hours) + (25 insurers x 50 hours)). At a blended, fully loaded hourly rate of
Dated:
Director, Federal Insurance Office.
[FR Doc. 2018-24546 Filed 11-8-18;
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