Terrorism Risk Insurance Program; Adjustment to Civil Penalty Amount Under the Terrorism Risk Insurance Act of 2002
SUMMARY:
DATES: Effective date:
ADDRESSES: Submit comments electronically through the Federal eRulemaking Portal: http://www.regulations.gov, or by mail (if hard copy, preferably an original and two copies) to the Federal Insurance Office, Attention:
In general, comments received will be posted on http://www.regulations.gov without change, including any business or personal information provided. Comments received, including attachments and other supporting materials, will be part of the public record and subject to public disclosure. Do not enclose any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Legal Background
TRIA /1/ requires insurers to "make available" terrorism risk insurance for commercial property and casualty losses resulting from certified acts of terrorism (insured losses), and provides for shared public and private compensation for such insured losses through the Terrorism Risk Insurance Program (TRIP or Program). The Secretary of the
FOOTNOTE 1 15 U.S.C. 6701 note (Pub. L. 107-297, 116 Stat. 2322). Because the provisions of TRIA (as amended) appear in a note, instead of particular sections, in
Section 104(e) of TRIA authorizes the Secretary to assess civil penalties for certain violations of statutory and regulatory provisions concerning the administration of the Terrorism Risk Insurance Program and the assertions of claims under the Program by participating insurers. The civil penalty amount under TRIA may not exceed the greater of
FOOTNOTE 2 Notice of Proposed Rulemaking, 81 FR 18950, 18972 (proposed 50 CFR 50.82) (
The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 /3/ (Improvements Act) amended the inflation adjustment calculation previously required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended (FCPIA Act). /4/ The Improvements Act requires that penalty amounts initially be adjusted for inflation pursuant to a catch-up "cost-of-living adjustment" through an interim final rulemaking. The Improvements Act also requires subsequent annual adjustments no later than
FOOTNOTE 3 Public Law 114-74. END FOOTNOTE
FOOTNOTE 4 28 U.S.C. 2461 note. END FOOTNOTE
Section 5(b) of the Improvements Act defines the initial cost-of-living adjustment as "the percentage (if any) for each civil monetary penalty by which the Consumer Price Index for the month of
II. Proposed Rulemaking
In the TRIP Rule,
Because the Improvements Act requires that civil penalty amounts be adjusted by an interim final rulemaking issued no later than
This interim final rule also provides for the annual readjustment of the civil penalty amount under TRIA as required by the Improvements Act. Although currently numbered as 31 CFR 50.86, we anticipate that the provisions contained in this interim final rule will be renumbered as 31 CFR 50.83 and included in any TRIP final rules as ultimately issued, pursuant to
III. Calculation of Inflation Adjustment
Under the Improvements Act,
IV. Request for Comments
Procedural Requirements
Under the Improvements Act, civil penalties are to be adjusted by interim final rule. Because
FOOTNOTE 5 5 U.S.C.
FOOTNOTE 6 44 U.S.C. 3501 et seq. END FOOTNOTE
List of Subjects in 31 CFR Part 50
Insurance, Terrorism.
For the reasons stated in the preamble, the
PART 50--TERRORISM RISK INSURANCE PROGRAM
1. The authority citation for part 50 is revised to read as follows:
Authority: 5 U.S.C. 301; 31 U.S.C. 321; Title I, Pub. L. 107-297, 116 Stat. 2322, as amended by Public Law 109-144, 119 Stat. 2660, Pub. L. 110-160, 121 Stat. 1839 and Pub. L. 114-1, 129 Stat. 3 (15 U.S.C. 6701 note); Pub. L. 114-74, 129 Stat. 601, Title VII (28 U.S.C. 2461 note).
Subpart I--Federal Cause of Action; Approval of Settlements
2. Section 50.86 is added to read as follows:
(a) Catch-up adjustment. Any penalty under the Act and these regulations may not exceed the greater of
(b) Annual adjustment. The maximum penalty amount that may be assessed under this section will be adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, 28 U.S.C. 2461 note, by
Dated:
Acting Assistant Secretary for Financial Institutions.
Interim final rule.
CFR Part: "31 CFR Part 50"
Citation: "81 FR 88600"
Federal Register Page Number: "88600"
"Rules and Regulations"
Terrorism Risk Insurance Program; Certification
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