Federal Register: May 11, 2006 (Volume 71, Number 91)
DOCID: FR Doc 06-4349
DEPARTMENT OF THE TREASURY
CFR Citation: 31 CFR Part 50
RIN ID: RIN 1505-AB67
NOTICE: Part III
DOCUMENT ACTION: Notice of proposed rulemaking by cross-reference to interim final rule.
Terrorism Risk Insurance Program; TRIA Extension Act Implementation
DATES: Written comments may be submitted on or before June 12, 2006.
The Department of the Treasury (Treasury) is issuing this
proposed rule as part of its implementation of amendments made to Title
I of the Terrorism Risk Insurance Act of 2002 (TRIA or Act) \1\ by the
Terrorism Risk Insurance Extension Act of 2005 (Extension Act).\2\ The
Act established a temporary Terrorism Risk Insurance Program (Program)
that was scheduled to expire on December 31, 2005, under which the
Federal Government shared the risk of insured losses from certified
acts of terrorism with commercial property and casualty insurers. The
Extension Act extends the Program through December 31, 2007, and makes
other changes which are implemented by this rule. In particular, the
rule addresses changes to the types of commercial property and casualty
insurance covered by the Act, the requirements to satisfy the Act's
mandatory availability (``make available'') provision and the operation
of the new ``Program Trigger'' provision in section 103(e)(1)(B) of the
Act. This proposed rule proposes to adopt as a final rule the interim
final rule published elsewhere in this issue of the Federal Register.
The text of the interim final rule serves as the text of this proposed rule.
\1\ Pub. L. 107297, 116 Stat. 2322, 15 U.S.C. 6701 note. \2\ Pub. L. 109144, 119 Stat. 2660, 15 USCA 6701 note.
I. The Proposed Rule
Published elsewhere in this issue of the Federal Register is an interim final rule amending subparts A, B, C, F, and I to 31 CFR part 50, which in part comprises Treasury's regulations implementing the Act. The preamble to the interim final rule explains these provisions of the proposed rule in detail, and the text of the interim final rule serves as the text for this proposed rule. Treasury is soliciting comments on all aspects of this proposed rule from all interested parties.
II. Procedural Requirements
This proposed rule is not a significant regulatory action under the
terms of Executive Order 12866. Pursuant to the Regulatory Flexibility
Act (5 U.S.C. chapter 6), it is hereby certified that this proposed
rule will not have a significant economic impact on a substantial
number of small entities. The Act requires all licensed or admitted
insurers to participate in the Program. This includes all insurers
regardless of size or sophistication. The Act also defines property and
casualty insurance to mean commercial lines without any reference to
the size or scope of the commercial entity. The disclosure and ``make
available'' requirements are required by the Act. The proposed rule
allows all insurers, whether large or small, to use existing systems
and business practices to demonstrate compliance. Treasury is required
to pay the Federal share of compensation to insurers for insured losses
subject to the new Program Trigger provisions in the Act. The
requirement that insurers seek advance approval of certain settlements
is now required by the Act. Accordingly, any economic impact associated
with the proposed rule flows from the Act and not the proposed rule.
However, the Act and the Program are intended to provide benefits to
the U.S. economy and all businesses, including small businesses, by
providing a federal reinsurance backstop to commercial property and
casualty insurance policyholders and spreading the risk of insured losses resulting from an act of terrorism.
List of Subjects in 31 CFR Part 50
Terrorism risk insurance.
Authority and Issuance
For the reasons set forth above, the Department of the Treasury
proposes to adopt as a final rule this proposed rule that revises 31
CFR part 50 as follows: The text of subparts A, B, C, F, and I are
revised to be the same as the text of subparts A, B, C, F, and I to 31
CFR part 50 in the interim final rule published elsewhere in this issue of the Federal Register.
Dated: May 4, 2006.
Emil W. Henry, Jr.,
Assistant Secretary of the Treasury.
[FR Doc. 064349 Filed 51006; 8:45 am]
BILLING CODE 481115P
FOR FURTHER INFORMATION CONTACT
Howard Leikin, Deputy Director, or David Brummond, Legal Counsel, Terrorism Risk Insurance Program (202) 6226770 (not a tollfree number).