Skip to Content

Notice

Notice of Request for Revision of a Currently Approved Collection.

Document Details

Information about this document as published in the Federal Register.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

Start Preamble

AGENCY:

Risk Management Agency, USDA.

ACTION:

Revision of a Currently Approved Collection; comment request.

SUMMARY:

In accordance with the Paperwork Reduction Act of 1995, this notice announces a public comment period on the information collection requests (ICRs) associated with the Standard Reinsurance Agreement and Appendices I, II and IV administered by Federal Crop Insurance Corporation (FCIC). Appendix III is excluded because it contains the Data Acceptance System requirements.

DATES:

Written comments on this notice will be accepted until close of business, September 27, 2010.

ADDRESSES:

Interested persons are invited to submit written comments to David L. Miller, Director, Reinsurance Services Division, Federal Crop Insurance Corporation, United States Department of Agriculture (USDA), 1400 Independence Avenue, SW., Stop 0804, Washington, DC 20250. Written comments may also be submitted electronically to: dave.miller@rma.usda.gov.

Start Further Info

FOR FURTHER INFORMATION CONTACT:

David L. Miller, Director, Risk Management Agency, at the address listed above, telephone (202) 720-9830.

End Further Info End Preamble Start Supplemental Information

SUPPLEMENTARY INFORMATION:

Title: Standard Reinsurance Agreement; Appendices I, II and IV.

OMB Number: 0563-0069.

Type of Request: Revised and new Information Collection.

Abstract: The Federal Crop Insurance Act (Act), Title 7 U.S.C. Chapter 36, Section 1508(k), authorizes the FCIC to provide reinsurance to insurers approved by FCIC that insure producers of any agricultural commodity under one or more plans acceptable to FCIC. The Act also states that the reinsurance shall be provided on such terms and conditions as the Board may determine to be consistent with subsections (b) and (c) of this section and sound reinsurance principles.

FCIC executes the same form of reinsurance agreement, called the Standard Reinsurance Agreement (SRA), with sixteen participating insurers approved for the 2011 reinsurance year. Appendix I of the SRA, Regulatory Duties and Responsibilities, sets forth the company's responsibilities as required by statute. Appendix II of the SRA, the Plan of Operations (Plan), sets forth the information the insurer is required to file with RMA for each reinsurance year they wish to participate. The Plan's information enables RMA to evaluate the insurer's financial and operational capability to deliver the crop insurance program in accordance with the Act. Estimated premiums by fund by state, and retained percentages along with current policyholders surplus are used in calculations to determine whether to approve the insurer's requested maximum reinsurable premium volume for the reinsurance year per 7 CFR part 400 subpart L. This information has a direct effect upon the insurer's amount of retained premium and associated liability and is required to calculate the insurer's underwriting gain or loss.

Appendix IV of the SRA, Quality Control and Program Integrity, establishes the minimum annual agent and loss adjuster training requirements, and quality control review procedures and performance standards required of the insurance companies. FCIC requires each insurer to submit, for each reinsurance year, a Quality Control Report to FCIC containing details of the results of their completed reviews. The insurance companies must also provide an annual Training and Performance Evaluation Report which details the evaluation of each agent and loss adjuster and reports of any remedial actions taken by the Company to correct any error or omission or ensure compliance with the SRA.

Since the currently approved information collection package does not account for new information collections implemented in the 2011 reinsurance year, we are asking the Office of Management and Budget (OMB) to approve this revised information collection activity for 3 years.

The purpose of this notice is to solicit comments from the public concerning this information collection activity as associated with the SRA in effect for the 2011 and subsequent reinsurance years. These comments will help us:

(1) Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information has practical utility;

(2) Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information;

(3) Enhance the quality, utility, and clarity of the information to be collected; and

(4) Minimize the burden of the collection of information on those who are to respond, through use, as appropriate, of automated, electronic, mechanical, and other collection technologies, e.g., permitting electronic submission of responses.

The SRA includes Conflict of Interest data collection, which in addition to the insurance companies reinsured by FCIC, encompasses the insurance companies' employees and their contracted agents and loss adjusters. The SRA also includes a Controlled Business data collection from all employed or Start Printed Page 44757contracted agent. The estimate below shows the burden that will be placed upon the following affected entities.

Estimate of Burden: The public reporting burden for the collection of Appendix II information is estimated to average 162 hours per response.

Respondents/Affected Entities: Insurance companies reinsured by FCIC.

Estimated annual number of respondents: 16.

Estimated annual number of responses per respondent: 1.

Estimated annual number of responses: 16.

Estimated total annual burden on respondents (hours): 2,592.

Estimate of Burden: The public reporting burden for the Appendix I collection of Conflict of Interest information is estimated to average 1 hour per response.

Respondents/Affected Entities: Approved Insurance Provider's employees and their contracted agents and loss adjusters.

Estimated annual number of respondents: 20,800.

Estimated annual number of responses per respondent: 1.

Estimated annual number of responses: 20,800.

Estimated total annual burden on respondents (hours): 20,800.

Estimate of Burden: The public reporting burden for the Appendix I collection of Controlled Business information is estimated to average 1 hour per response.

Respondents/Affected Entities: Approved Insurance Provider's employed and contracted agents.

Estimated annual number of respondents: 15,000.

Estimated annual number of responses per respondent: 1.

Estimated annual number of responses: 15,000.

Estimated total annual burden on respondents (hours): 15,000.

Estimate of Burden: The public reporting burden for the Appendix IV annual Training and Performance Evaluation Report and Quality Control Report is estimated to average 16 hours per response.

Respondents/Affected Entities: Insurance companies reinsured by FCIC.

Estimated annual number of respondents: 16.

Estimated annual number of responses per respondent: 1.

Estimated annual number of responses: 16.

Estimated total annual burden on respondents (hours): 256.

All responses to this notice will be summarized and included in the request for OMB approval. All comments will also become a matter of public record.

Start Signature

Signed in Washington, DC, on July 26, 2010.

William J. Murphy,

Administrator, Federal Crop Insurance Corporation.

End Signature End Supplemental Information

[FR Doc. 2010-18664 Filed 7-28-10; 8:45 am]

BILLING CODE 3410-08-P