Laws and Regulations - 2002 Legislation

Last Update: December, 2002

United States Treasury Department (Billing Code 4810-25-M) - Bulletin #989
Interim Guidance Concerning New Statutory Disclosure and Mandatory Availability Requirements of the Terrorism risk Insurance Act of 2002

ACTION: Notice

SUMMARY: This notice provides interim guidance to insurers concerning certain statutory disclosure and mandatory availability requirements contained in the Terrorism Risk Insurance Act of 2002 (Pub.L.107-297). In addition, this notice provides interim guidance to insurers concerning the types of commercial property and casualty insurance covered by the Act and concerning the term "direct earned premium" as used in the Act.

DATES: This notice is effective immediately and will remain in effect until superceded by regulations or by subsequent notice.

Interim Guidance Concerning Definition of Insurers, Scope of Insurance Coverage, and Disclosures Mandated by the Terrorism risk Insurance Act of 2002

ACTION: Notice

SUMMARY: This notice provides additional interim guidance concerning entities that are "insurers" as defined in Title I of the Terrorism Risk Insurance Act of 2002 (Pub.L.107-297) and, therefore, are required to be participants in the Department of Treasury's Terrorism risk Insurance Program. This notice also provides interim guidance concerning the scope of insurance coverage under the Program, including guidance to assist participating insurers in estimation their "insurer deductible," prior to the issuance of regulations, based on how they report their "direct earned premium" (or comparable format). Additional guidance concerning required disclosures under the Act is also provided by this notice.

DATES: This notice is effective immediately and will remain in effect until superceded by regulations or by subsequent notice.

FOR FURTHER INFORMATION CONTACT: Mario Ugoletti, Deputy Director, Office of Financial Institutions and GSE Policy 202-622-2730; Martha Ellett, Attorney-Advisor, Office of the Assistant General Counsel (Banking and Finance) 202-622-0480.

United States Senate Bill (Schumer D-NY)

This bill would give insurance companies an option to obtain a federal charter or license and would create a new office of the National Insurance Commissioner under the U.S. Treasury Department. The federal charter would exempt national insurers from most state regulation including rate and form regulation. The Commissioner would serve a 5-year term, and could issue regulations on minimum capital requirements and reserving rules for nationally chartered insurers and producers. Producers who have a state agents or brokers license could not do business with a nationally chartered company unless they obtain a national producers license.