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25168 Federal Register / Vol. 69, No.

87 / Wednesday, May 5, 2004 / Notices

Washington, DC 20590. Telephone (202) SUPPLEMENTARY INFORMATION: On Pursuant to the Act, Treasury is now
366–2323. Fax (202) 493–2180. Other November 26, 2002, President Bush considering whether to extend the make
information about the VISA can be signed into law the Terrorism Risk available requirements in section
found on MARAD’s Internet Web Page Insurance Act of 2002 (the Act). The Act 103(c)(1)(A) and (B) to Program Year 3.
at http://www.marad.dot.gov. was effective immediately. Title I of the As noted above, section 103(c)(2)
Authority: 49 CFR 1.66. Act established a temporary federal provides that Treasury base this
program of shared public and private determination ‘‘on the factors referred to
By Order of the Maritime Administrator. compensation for insured commercial in section 108(d)(1)’’. Section 108(d) of
Dated: April 30, 2004.
property and casualty insured losses the Act requires Treasury to conduct a
Joel C. Richard, resulting from an act of terrorism as study and prepare a report to Congress
Secretary, Maritime Administration. defined by the Act. The Act authorized by June 30, 2005 relating to the
[FR Doc. 04–10202 Filed 5–4–04; 8:45 am] Treasury to administer and implement termination of the Program; the factors
BILLING CODE 4910–81–P the three year Terrorism Risk Insurance described in section 108(d)(1) (and
Program which ends on December 31, cross-referenced by section 103 of the
2005. Act) are keyed directly to the overall
DEPARTMENT OF THE TREASURY Section 103(c)(1) of the Act requires effectiveness of the Program and how
each entity that meets the definition of the insurance industry might respond
Departmental Offices; Treasury’s an insurer under the Act to (A) make after the termination of the Program. To
Decision To Extend the Terrorism Risk available, in all of its property and better enable Treasury to evaluate the
Insurance Act’s ‘‘Make Available’’ casualty insurance polices coverage for overall effectiveness of the Act as
Requirement insured losses; and (B) make available required by section 108(d), Treasury is
property and casualty insurance in the process of conducting a series of
AGENCY: Department of the Treasury, nationally representative surveys of
coverage for insured losses that does not
Departmental Offices. insurers and policyholders.
differ materially from the terms,
ACTION: Notice; Request for Comments. amounts, and other coverage limitations The section 103(c) determination of
applicable to losses arising from events whether to extend the make available
SUMMARY: Title I of the Terrorism Risk requirements, and its timing, differ from
Insurance Act of 2002 (Pub. L. 107–297) other than acts of terrorism. These
requirements apply from the date of the purpose and timing of the study and
requires that, from the date of enactment report required by section 108(d), but
(November 26, 2002) through the last enactment (November 26, 2002) through
the last day of Program Year 2 the Act requires Treasury to base the
day of Program Year 2 (December 31, make available determination on the
2004), each insurer must make (December 31, 2004).1
In addition, section 103(c)(2) of the factors referenced in section 108(d)(1).
available, in all of its property and Treasury’s data collection from the
casualty insurance policies, coverage for Act requires Treasury to determine, no
surveys we are conducting as part of our
insured losses under the Act. In this later than September 1, 2004, whether to
overall evaluation of the Program for
regard, the Act requires that such extend the ‘‘make available’’
purposes of the study under section
insurance coverage must not differ requirements of section 103(c)(1)
108(d) will only be partially complete
materially from the terms, amounts and through Program Year 3 (December 31,
by the time a decision on extending the
other coverage limitations applicable to 2005). (Regardless of whether the make
make available requirement must be
losses arising from events other than available requirements are extended by
made. In addition, the make available
acts of terrorism. In addition, the Act Treasury through Program Year 3, we
requirement of section 103(c) comprises
requires the Secretary of the Treasury note that the overall Program and the
only one component of the overall
(Treasury) to determine, no later than Act’s federal backstop for insured losses
Program. Thus, as Treasury considers
September 1, 2004, whether to extend for acts of terrorism continue though
whether to extend the make available
these statutory make available December 31, 2005.) The Treasury
requirement into Program Year 3, we are
requirements through Program Year 3 determination on whether to extend the
particularly interested in any specific
(December 31, 2005). To obtain make available requirements through
way, or ways, in which the make
additional information to assist Program Year 3 is to be based on the
available requirement has worked or
Treasury in its determination, the factors referred to in section 108(d)(1) of
affected the overall operation of the
Treasury solicits public comment on the the Act. The factors referred to in
Program and whether this ties into the
questions listed below. section 108(d)(1) are:
factors described in section 108(d)(1).
• The ‘‘effectiveness of the Program;’’ To facilitate a determination by
DATES: Comments must be in writing
• The ‘‘likely capacity of the property Treasury within the required time frame
and received by June 4, 2004. and casualty insurance industry to offer
ADDRESSES: Send comments by e-mail to
on whether to extend the make available
insurance for terrorism risk after requirement into Program Year 3,
triacomments@do.treas.gov. Please termination of the Program’’ and Treasury solicits general comments from
include your name, affiliation, address, • The ‘‘availability and affordability the public as well as specific responses
e-mail address, and telephone number. of such insurance for various
All submissions should be captioned to the following questions, including
policyholders, including railroads, submission of any relevant empirical
‘‘Comments on Make Available trucking, and public transit.’’
Determination.’’ data in support of such comments
1 Following enactment of the Act, Treasury
where appropriate and available.
Mario Ugoletti, Acting Director, Office promptly issued interim guidance on the make I. Effectiveness of the Make Available
available requirement and other provisions of the Requirement in the Context of the
of Financial Institutions Policy, 202– Act. See for example, 67 FR 76206 (December 11,
622–0715; Roy Woodall, Senior 2002). This interim guidance was superceded by Overall Program
Insurance Analyst, Office of Financial Treasury’s interim final rules and notice and 1.1 Has the make available
comment rulemaking. Treasury’s final regulations
Institutions Policy, 202–622–5171; U.S. implementing the make available requirements of
requirement contributed to the overall
Treasury Department (not toll-free section 103(c)(1) are located at 31 CFR 50.20–24. effectiveness of the Program over the
numbers). See also 68 FR 59720 (October 17, 2003). first two years of the Program? In

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Federal Register / Vol. 69, No. 87 / Wednesday, May 5, 2004 / Notices 25169

particular, has the make available Program to date? Has the make available DATES: Written comments should be
requirement been effective in making requirement led to any build-up in received on or before July 6, 2004, to be
terrorism insurance coverage available capacity? assured of consideration.
and more affordable to the insurance 2.2. How would a Treasury decision ADDRESSES: Direct all written comments
marketplace in general, to large to extend or not to extend the make to Glenn P. Kirkland, Internal Revenue
corporate policyholders, and to small available requirement affect or interact Service, room 6411, 1111 Constitution
business policyholders? (We specifically with the capacity of property and Avenue, NW., Washington, DC 20224.
seek information on terrorism coverage casualty insurers (including the FOR FURTHER INFORMATION CONTACT:
for railroads, trucking and public transit availability of reinsurance) in terms of Requests for additional information or
in response to this question.) offering terrorism risk insurance copies of the form and instructions
1.2 How would the effectiveness of coverage in Program Year 3? In addition, should be directed to Carol Savage at
the Program be affected during Program
would there be any effect on insurers’ Internal Revenue Service, room 6407,
Year 3 (where the federal backstop for
decision to offer terrorism risk 1111 Constitution Avenue, NW.,
terrorism insurance is still maintained
insurance coverage beyond 2005 that Washington, DC 20224, or at (202) 622–
under the Act) if the make available
could be associated with a decision to 3945, or through the Internet at
requirement is not extended? Would
extend or not to extend the make CAROL.A.SAVAGE@irs.gov.
policyholders still be able to obtain
available requirement during Program SUPPLEMENTARY INFORMATION:
terrorism risk insurance (under what
Year 3? Title: Foreign Tax Credit.
terms and conditions) and would the
affordability be impacted if the III. Operational Issues OMB Number: 1545–0121.
requirement is not extended? Compare Form Number: 1116.
your response to the preceding 3.1 What would be the regulatory Abstract: Form 1116 is used by
questions to what you believe would be impact at the state level (e.g. on filings individuals (including nonresident
the effectiveness of the Program if the with the state regulator of policy forms aliens), estates, or trusts who paid
make available requirement is extended or exclusions) if the make available foreign income taxes on U.S. taxable
into 2005. requirement were extended through income, to compute the foreign tax
1.3 Has Treasury’s implementation Program Year 3 (2005)? Similarly, what credit. This information is used by the
of the make available requirement would be the regulatory impact at the IRS to determine if the foreign tax credit
contributed to the effectiveness of the state level if the make available is properly computed.
Program? In particular, has the make requirement were not extended through Current Actions: There are no changes
available requirement resulted in Program Year 3? being made to Form 1116 at this time.
businesses being provided with useful 3.2 Are there other operational Type of Review: Extension of a
information and the enhanced ability to issues that Treasury should consider as currently approved collection.
compare prices for terrorism risk part of determining whether or not to Affected Public: Individuals or
insurance across a number of providers? extend the make available requirement households.
Given the experience with the make through Program Year 3? Estimated Number of Respondents:
available requirement since enactment 442,425.
Dated: April 28, 2004. Estimated Time Per Respondent: 6
and policyholders’ decisions on
whether to purchase coverage provided Wayne A. Abernathy, hours, 33 minutes.
by the Act, are there other approaches Assistant Secretary for Financial Institutions. Estimated Total Annual Burden
to implementing the make available [FR Doc. 04–10151 Filed 5–4–04; 8:45 am] Hours: 2,897,886.
requirement that are worth considering? BILLING CODE 4811–15–P The following paragraph applies to all
1.4 How would a decision on of the collections of information covered
extending or not extending the make by this notice:
available requirement affect DEPARTMENT OF THE TREASURY An agency may not conduct or
policyholders’ understanding of their sponsor, and a person is not required to
options regarding the availability of Internal Revenue Service respond to, a collection of information
terrorism risk insurance coverage in unless the collection of information
Proposed Collection; Comment displays a valid OMB control number.
Program Year 3 (e.g., that the federal
Request for Form 1116 Books or records relating to a collection
backstop for terrorism risk insurance is
still in force)? Would one course of of information must be retained as long
AGENCY: Internal Revenue Service (IRS),
action be better understood by as their contents may become material
policyholders than other options? in the administration of any internal
ACTION: Notice and request for revenue law. Generally, tax returns and
II. The Relationship Between the Make comments. tax return information are confidential,
Available Requirement and the Likely as required by 26 U.S.C. 6103.
Capacity of Property and Casualty SUMMARY: The Department of the Request for Comments: Comments
Insurers To Offer Coverage for Treasury, as part of its continuing effort submitted in response to this notice will
Terrorism Risk After Termination of to reduce paperwork and respondent be summarized and/or included in the
the Program burden, invites the general public and request for OMB approval. All
2.1 What is the relationship between other Federal agencies to take this comments will become a matter of
the make available requirement and an opportunity to comment on proposed public record. Comments are invited on:
insurer’s capacity to offer terrorism risk and/or continuing information (a) Whether the collection of
insurance coverage? How has the make collections, as required by the information is necessary for the proper
available requirement affected or Paperwork Reduction Act of 1995, performance of the functions of the
interacted with the available capacity of Public Law 104–13 (44 U.S.C. agency, including whether the
property and casualty insurers to 3506(c)(2)(A)). Currently, the IRS is information shall have practical utility;
provide terrorism risk insurance soliciting comments concerning Form (b) the accuracy of the agency’s estimate
coverage during the course of the 1116, Foreign Tax Credit. of the burden of the collection of

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