Unknown. Final rule

4,557 words·~21 min read·/register/2018/10/11/2018-21699·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2018-10-11.xml --- 83 197 Thursday, October 11, 2018 Contents Agriculture Agriculture Department See Federal Crop Insurance Corporation Antitrust Division Antitrust Division NOTICES Changes under the National Cooperative Research and Production Act: American Society of Mechanical Engineers, 51503-51504 2018-22092 ASTM International Standards, 51504 2018-22081 ODPi, Inc., 51504 2018-22082 Civil Rights Civil Rights Commission NOTICES Meetings:

Tennessee Advisory Committee, 51435 2018-22068 Coast Guard Coast Guard RULES Safety Zones: Ohio River, Cincinnati, OH, 51334-51336 2018-22155 Transmission Line Survey, Tennessee River Mile Marker 300 to 302, Decatur, AL, 51338-51340 2018-22160 Upper Mississippi River, Mile 182.5, St. Louis, MO, 51336-51338 2018-22033 NOTICES Update to the 2016 National Preparedness for Response Exercise Program

(PREP)Guidelines; Correction, 51472 2018-22214 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration See National Telecommunications and Information Administration See Patent and Trademark Office Consumer Product Consumer Product Safety Commission NOTICES Meetings; Sunshine Act, 51450 2018-22240 Defense Department Defense Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Delivery Schedules, 51461-51462 2018-22029 Federal Acquisition Regulation, 51462-51464 2018-22030 Two-Year Extension of TRICARE Co-Pay Waiver at Captain James A. Lovell Federal Health Care Center Demonstration Project, 51450-51451 2018-22184 Defense Nuclear Defense Nuclear Facilities Safety Board NOTICES Meetings; Sunshine Act, 51451 2018-22287 Education Department Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Guaranty Agencies Security Self-assessment and Attestation, 51451-51452 2018-22110 William D. Ford Federal Direct Loan Program General Forbearance Request, 51451 2018-22112 Energy Department Energy Department See Federal Energy Regulatory Commission NOTICES Application to Export Electric Energy: Guzman Energy LLC, 51452-51453 2018-22198 Intent to Grant Exclusive License, 51453 2018-22212 Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans; Approvals and Promulgations: Maryland; Nitrogen Oxides

(NOx)Ozone Season Emissions Caps for Non-Trading Large NO <sup>X</sup> Units and Associated Revisions to General Administrative Provisions and Kraft Pulp Mill Regulation, 51366-51369 2018-21653 Ohio; Approval of Sulfur Dioxide Regulations, 51361-51365 2018-22012 Significant New Use Rules on Certain Chemical Substances; Withdrawal, 51360-51361 2018-22194 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Promulgations: Wyoming; Revisions to Regional Haze State Implementation Plan; Revisions to Regional Haze Federal Implementation Plan, 51403-51418 2018-21949 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: National Volatile Organic Compound Emission Standards for Aerosol Coatings, 51460-51461 2018-22071 NESHAP for Carbon Black, Ethylene, Cyanide and Spandex, 51458 2018-22070 NESHAP for Hazardous Waste Combustors, 51459-51460 2018-22067 NESHAP for Primary Copper Smelters, 51456 2018-22069 Water Quality Standards Regulation, 51457-51458 2018-22095 Public Hearings: Public Water System Supervision Program Revision for Pennsylvania, 51459 2018-22166 Settlements: Arkla Terra Property Superfund Site, Thonotosassa, Hillsborough County, FL, 51456-51457 2018-22164 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives: Airbus SAS Airplanes, 51313-51315 2018-21605 The Boeing Company Airplanes, 51304-51313 2018-21460 Amendment of Class B and C Airspace: Chicago, IL, 51315-51316 2018-22193 NOTICES Waiver of Aeronautical Land-Use Assurance General Wayne A. Downing Peoria International Airport, Peoria, IL, 51543-51544 2018-22197 Federal Crop Federal Crop Insurance Corporation RULES General Administrative Regulations: Reinsurance Agreement—Standards for Approval; Regulations for the 2019 and Subsequent Reinsurance Years, 51301-51303 2018-21699 Federal Energy Federal Energy Regulatory Commission NOTICES Combined Filings, 51454-51455 2018-22064 2018-22065 Complaints: Tradewind Energy, Inc. v. Southern Co. Services, Inc., 51453-51454 2018-22083 Hydroelectric Applications: Boise Project Board of Control, 51455-51456 2018-22073 Federal Highway Federal Highway Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 51544-51545 2018-22138 Federal Reserve Federal Reserve System NOTICES Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 51461 2018-22105 Fish Fish and Wildlife Service PROPOSED RULES Endangered and Threatened Species: Atlantic Pigtoe; Critical Habitat Designation, 51570-51609 2018-21798 Designation of Critical Habitat for the Black Pinesnake, 51418-51424 2018-22013 Food and Drug Food and Drug Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 51464-51465 2018-22101 Charter Renewals: Antimicrobial Drugs Advisory Committee, 51465 2018-22098 Dermatologic and Ophthalmic Drugs Advisory Committee, 51464 2018-22183 Foreign Assets Foreign Assets Control Office NOTICES Blocking or Unblocking of Persons and Properties, 51545-51563 2018-22165 General Services General Services Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Delivery Schedules, 51461-51462 2018-22029 Federal Acquisition Regulation, 51462-51464 2018-22030 Geological Geological Survey NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: North American Breeding Bird Survey, 51499-51500 2018-22040 Health and Human Health and Human Services Department See Food and Drug Administration See National Institutes of Health RULES Annual Civil Monetary Penalties Inflation Adjustment, 51369-51390 2018-22005 NOTICES Charter Renewals: Advisory Committee on Human Research Protections, 51465-51466 2018-22167 Homeland Homeland Security Department See Coast Guard NOTICES Determinations: Illegal Immigration Reform and Immigrant Responsibility Act, 51472-51474 2018-22063 Housing Housing and Urban Development Department NOTICES Expansion of the Moving to Work Demonstration Program, 51474-51499 2018-22158 Interior Interior Department See Fish and Wildlife Service See Geological Survey Internal Revenue Internal Revenue Service NOTICES Meetings: Taxpayer Advocacy Panel Joint Committee, 51564 2018-22058 Taxpayer Advocacy Panel Notices and Correspondence Project Committee, 51565 2018-22052 Taxpayer Advocacy Panel Special Projects Committee, 51563-51564 2018-22061 Taxpayer Advocacy Panel Tax Forms and Publications Project Committee, 51564 2018-22060 Taxpayer Advocacy Panel Taxpayer Assistance Center Improvements Project Committee, 51564 2018-22057 Taxpayer Advocacy Panel Taxpayer Communications Project Committee, 51563 2018-22059 Taxpayer Advocacy Panel Toll-Free Phone Line Project Committee, 51565 2018-22053 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Cold-Rolled Steel Flat Products from the Republic of Korea, 51446-51447 2018-22124 Certain Magnesia Carbon Bricks from the People's Republic of China, 51435-51436, 51444-51446 2018-22130 2018-22131 Certain New Pneumatic Off-the-Road Tires from the People's Republic of China, 51439-51440 2018-22127 Certain Oil Country Tubular Goods from the Republic of Korea, 51442-51444 2018-22128 Laminated Woven Sacks from the Socialist Republic of Vietnam, 51436-51439 2018-22126 Oil Country Tubular Goods from the Republic of Turkey, 51440-51442 2018-22129 International Trade Com International Trade Commission NOTICES Complaints: Certain Electronic Nicotine Delivery Systems and Components Thereof, 51502-51503 2018-22156 Investigations; Determinations, Modifications, and Rulings, etc.: Certain Graphics Systems, Components Thereof, and Consumer Products Containing the Same, 51500-51501 2018-22115 Polytetrafluoroethylene Resin from China and India, 51501-51502 2018-22042 Joint Joint Board for Enrollment of Actuaries NOTICES Charter Renewals: Advisory Committee on Actuarial Examinations, 51503 2018-22051 Meetings: Advisory Committee, 51503 2018-22050 Justice Department Justice Department See Antitrust Division NOTICES Proposed Consent Decrees: CERCLA, 51504-51505 2018-22121 Labor Department Labor Department See Labor Statistics Bureau See Occupational Safety and Health Administration Labor Statistics Labor Statistics Bureau NOTICES Charter Renewals: Data Users Advisory Committee, 51505 2018-22104 Technical Advisory Committee, 51505-51506 2018-22103 NASA National Aeronautics and Space Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Delivery Schedules, 51461-51462 2018-22029 Federal Acquisition Regulation, 51462-51464 2018-22030 National Endowment for the Arts National Endowment for the Arts NOTICES Meetings: National Council on the Arts, 51506 2018-22028 National Foundation National Foundation on the Arts and the Humanities See National Endowment for the Arts National Institute National Institutes of Health NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: DERT Extramural Grantee Data Collection, 51470-51471 2018-22038 Meetings: Center for Scientific Review, 51467-51469, 51471-51472 2018-22089 2018-22090 2018-22091 Eunice Kennedy Shriver National Institute of Child Health and Human Development, 51469-51470 2018-22080 National Cancer Institute, 51468 2018-22088 National Heart, Lung, and Blood Institute, 51466, 51470 2018-22086 2018-22087 National Institute of Diabetes and Digestive and Kidney Diseases, 51467 2018-22079 National Institute of General Medical Sciences, 51467-51469 2018-22075 2018-22076 2018-22077 2018-22078 National Institute of Mental Health, 51466-51467 2018-22072 National Institute on Aging, 51466 2018-22085 National Oceanic National Oceanic and Atmospheric Administration RULES Atlantic Highly Migratory Species: Atlantic Bluefin Tuna and Northern Albacore Tuna Quotas; Atlantic Bigeye and Yellowfin Tuna Size Limit Regulations, 51391-51399 2018-22034 Fisheries of the Exclusive Economic Zone off Alaska: Pollock in Statistical Area 620 in the Gulf of Alaska, 51399 2018-22141 Reef Fish Fishery of the Gulf of Mexico: 2018 Commercial Accountability Measure and Closure for Gulf of Mexico Gray Triggerfish, 51390 2018-22142 PROPOSED RULES Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic: Coastal Migratory Pelagics Resources in the Gulf of Mexico and Atlantic Region; Amendment 31, 51424-51426 2018-22000 Magnuson-Stevens Fishery Conservation and Management Act: Traceability Information Program for Seafood, 51426-51434 2018-22039 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Fisher Behavior and Protected Species Interactions in Hawai'i and American Samoa Longline Fisheries, 51448-51449 2018-22099 Meetings: Fisheries of the South Atlantic; Southeast Data, Assessment, and Review, 51448 2018-22118 National Integrated Drought Information System Executive Council, 51449 2018-22139 New England Fishery Management Council, 51447 2018-22120 National Telecommunications National Telecommunications and Information Administration NOTICES Developing the Administration's Approach to Consumer Privacy, 51449-51450 2018-22041 Nuclear Regulatory Nuclear Regulatory Commission RULES Standard Design Approvals: Korea Electric Power Corp., Korea Hydro and Nuclear Power Co., Ltd; Advanced Power Reactor 1400, 51304 2018-22116 NOTICES License Transfers: Dominion Energy, Inc., and SCANA Corp. Virgil C. Summer Nuclear Station, Units 1, 2, and 3, and the ISFSI, 51506-51509 2018-22159 La Crosse Boiling Water Reactor, 51509-51512 2018-22100 Occupational Safety Health Adm Occupational Safety and Health Administration NOTICES Charter Renewals: National Advisory Committee on Occupational Safety and Health, 51506 2018-22102 Patent Patent and Trademark Office RULES Changes to the Claim Construction Standard for Interpreting Claims in Trial Proceedings Before the Patent Trial and Appeal Board, 51340-51359 2018-22006 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 51512 2018-22106 Postal Service Postal Service RULES POSTNET Barcode, 51359-51360 2018-22107 NOTICES Product Changes: Priority Mail Negotiated Service Agreement, 51512 2018-22062 Presidential Documents Presidential Documents PROCLAMATIONS Special Observances: Columbus Day (Proc. 9801), 51615-51616 2018-22335 Fire Prevention Week (Proc. 9800), 51611-51614 2018-22333 ADMINISTRATIVE ORDERS Defense and National Security: Defense Production Act of 1950; Determination (Presidential Determination No. 2019-02 of October 5, 2018), 51617 2018-22338 Defense Production Act of 1950; Determination (Presidential Determination No. 2019-03 of October 5, 2018), 51619 2018-22340 Securities Securities and Exchange Commission NOTICES Orders: Cboe BZX Exchange, Inc., 51520-51521 2018-22084 NYSE Arca, Inc., 51520, 51531-51532 2018-22093 2018-22094 Self-Regulatory Organizations; Proposed Rule Changes: Cboe BZX Exchange, Inc., 51521-51529 2018-22096 Financial Industry Regulatory Authority, Inc., 51514-51515, 51532-51535 2018-22046 2018-22047 Investors Exchange LLC, 51512-51518 2018-22043 2018-22048 Miami International Securities Exchange, LLC, 51529-51531 2018-22044 MIAX PEARL, LLC, 51518-51520 2018-22045 NYSE American LLC, 51535-51538 2018-22049 Small Business Small Business Administration NOTICES Major Disaster Declarations: California; Amendment 1, 51539 2018-22113 California; Amendment 2, 51540 2018-22109 Nebraska; Public Assistance Only, 51539 2018-22111 New York; Public Assistance Only, 51538 2018-22108 Presidential Declaration of a Major Disaster for Public Assistance Only for the Territory of GUAM, 51539-51540 2018-22119 South Carolina; Amendment 3, 51538-51539 2018-22122 Social Social Security Administration PROPOSED RULES Prohibiting Persons with Certain Criminal Convictions from Serving as Representative Payees, 51400-51403 2018-22168 NOTICES Privacy Act; Systems of Records, 51540 2018-22035 Surface Transportation Surface Transportation Board NOTICES Continuances in Control Exemptions: David L. Durbano; Washington Eastern Railroad, LLC, 51540-51541 2018-22171 Fortress Investment Group LLC; Central Maine and Quebec Railway US Inc., Ohio River Partners Shareholder LLC, and DesertXpress Enterprises, LLC, 51541-51542 2018-22227 Washington Eastern Railroad, LLC; Eastern Washington Gateway Railroad Co., 51542 2018-22173 Susquehanna Susquehanna River Basin Commission NOTICES Projects Approved: Consumptive Uses of Water, 51542-51543 2018-22054 Minor Modifications, 51543 2018-22056 Projects Rescinded: Consumptive Uses of Water, 51543 2018-22055 Transportation Department Transportation Department See Federal Aviation Administration See Federal Highway Administration Treasury Treasury Department See Foreign Assets Control Office See Internal Revenue Service RULES Determination and Temporary Provisions Pertaining to a Pilot Program to Review Certain Transactions Involving Foreign Persons and Critical Technologies, 51322-51334 2018-22182 Provisions Pertaining to Certain Investments in the United States By Foreign Persons, 51316-51322 2018-22187 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Individual Income Tax Return, 51565-51567 2018-22180 Interest Rate Paid on Cash Deposited to Secure U.S. Immigration and Customs Enforcement Immigration Bonds, 51567 2018-22195 Separate Parts In This Issue Part II Interior Department, Fish and Wildlife Service, 51570-51609 2018-21798 Part III Presidential Documents, 51611-51617, 51619 2018-22335 2018-22333 2018-22338 2018-22340 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 83 197 Thursday, October 11, 2018 Rules and Regulations DEPARTMENT OF AGRICULTURE Federal Crop Insurance Corporation 7 CFR Part 400 [Docket No. FCIC-17-0005] RIN 0563-AC54 General Administrative Regulations; Reinsurance Agreement—Standards for Approval; Regulations for the 2019 and Subsequent Reinsurance Years. AGENCY: Federal Crop Insurance Corporation, USDA. ACTION: Final rule. SUMMARY: The Federal Crop Insurance Corporation

(FCIC)finalizes the General Administrative Regulations; Subpart L—Reinsurance Agreement—Standards for Approval; Regulations for the 2019 and Subsequent Reinsurance Years. The intended effect of this action is to clarify and improve Subpart L to better align with the existing Standard Reinsurance Agreement

(SRA)and Livestock Price Reinsurance Agreement

(LPRA)and to eliminate language that is no longer relevant. DATES: This rule is effective November 13, 2018. FOR FURTHER INFORMATION CONTACT: David L. Miller, Director, Reinsurance Services Division, Federal Crop Insurance Corporation, United States Department of Agriculture (USDA), 1400 Independence Avenue SW, Stop 0801, Washington, DC 20250, telephone

(202)720-9830. SUPPLEMENTARY INFORMATION: Background This rule finalizes changes to the General Administrative Regulations; Subpart L—Reinsurance Agreement—Standards for Approval; Regulations for the 2019 and Subsequent Reinsurance Years (7 CFR part 400, subpart L), that were published by FCIC on February 8, 2018, as a notice of proposed rulemaking in the **Federal Register** at 83 FR 5573—5576. The public was afforded 60 days to submit comments after the regulation was published in the **Federal Register** . A total of one comment was received from one commenter. The commenter was an insurance company. The public comment received regarding the proposed rule and FCIC's response to the comment is as follows: *Comment:* One comment was received from an insurance company asking for a definition of “outcome” which was added to Section 400.169(b). *Response:* FCIC removed the term outcome and returned Section 400.169(b) to its original language. Executive Orders 12866, 13563, and 13771 Executive Order 12866, “Regulatory Planning and Review,” and Executive Order 13563, “Improving Regulation and Regulatory Review,” direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasized the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The Office of Management and Budget

(OMB)designated this rule as not significant under Executive Order 12866, “Regulatory Planning and Review,” and therefore, OMB has not reviewed this rule. Executive Order 13771, “Reducing Regulation and Controlling Regulatory Costs,” requires that, in order to manage the costs required to comply with Federal regulations, that for every new significant or economically significant regulation issued, the new costs must be offset by the elimination of at least two prior regulations. This rule is not subject to Executive Order 13771. Paperwork Reduction Act of 1995 Pursuant to the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), the collections of information in this rule have been approved by the Office of Management and Budget

(OMB)under control number 0563-0069. E-Government Act Compliance FCIC is committed to complying with the E-Government Act of 2002, to promote the use of the internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. Unfunded Mandates Reform Act of 1995 Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public Law 104-4, establishes requirements for Federal agencies to assess the effects of their regulatory actions on State, local, and tribal governments and the private sector. This rule contains no Federal mandates (under the regulatory provisions of title II of the UMRA) for State, local, and tribal governments or the private sector. Therefore, this rule is not subject to the requirements of sections 202 and 205 of UMRA. Executive Order 13132 It has been determined under section 1(a) of Executive Order 13132, Federalism, that this rule does not have sufficient implications to warrant consultation with the States. The provisions contained in this rule will not have a substantial direct effect on States, or on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Executive Order 13175 This rule has been reviewed in accordance with the requirements of Executive Order 13175, “Consultation and Coordination with Indian Tribal Governments.” Executive Order 13175 requires Federal agencies to consult and coordinate with tribes on a government-to-government basis on policies that have tribal implications, including regulations, legislative comments or proposed legislation, and other policy statements or actions that have substantial direct effects on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes or on the distribution of power and responsibilities between the Federal Government and Indian tribes. FCIC has assessed the impact of this rule on Indian tribes and determined that this rule does not, to its knowledge, have tribal implications that require tribal consultation under E.O. 13175. If a Tribe requests consultation, FCIC will work with the Office of Tribal Relations to ensure meaningful consultation is provided where changes, additions and modifications identified herein are not expressly mandated by Congress. Regulatory Flexibility Act FCIC certifies that this regulation will not have a significant economic impact on a substantial number of small entities. Program requirements for the Federal crop insurance program are the same for all producers regardless of the size of their farming operation. For instance, all producers are required to submit an application and acreage report to establish their insurance guarantees and compute premium amounts, and all producers are required to submit a notice of loss and production information to determine the amount of an indemnity payment in the event of an insured cause of crop loss. Whether a producer has 10 acres or 1000 acres, there is no difference in the kind of information collected. To ensure crop insurance is available to small entities, the Federal Crop Insurance Act

(Act)authorizes FCIC to waive collection of administrative fees from beginning farmers or ranchers and limited resource farmers. FCIC believes this waiver helps to ensure that small entities are given the same opportunities as large entities to manage their risks through the use of Federal crop insurance. A Regulatory Flexibility Analysis has not been prepared since this regulation does not have an impact on small entities, and, therefore, this regulation is exempt from the provisions of the Regulatory Flexibility Act (5 U.S.C. 605). This regulation pertains to all legal entities wanting a Reinsurance Agreement, to insure financial stability and capacity under this regulation. Federal Assistance Program This program is listed in the Catalog of Federal Domestic Assistance under No. 10.450. Executive Order 12372 This program is not subject to the provisions of Executive Order 12372, which require intergovernmental consultation with State and local officials. See the Notice related to 7 CFR part 3015, subpart V, published at 48 FR 29115, June 24, 1983. Executive Order 12988 This rule has been reviewed in accordance with Executive Order 12988 on civil justice reform. The provisions of this rule will not have a retroactive effect. The provisions of this rule will preempt State and local laws to the extent such State and local laws are inconsistent herewith. Interpretations of statutory and regulatory provisions are matters of general applicability and, therefore, no administrative appeals process is available and judicial review may only be brought to challenge the interpretation after seeking a determination of appeal ability by the Director of the National Appeals Division

(NAD)in accordance with 7 CFR part 11. An interpretation of a policy provision not codified in the Code of Federal Regulations or any procedure used in the administration of any Federal crop insurance program are administratively appealable and the appeal provisions published at 7 CFR part 11 must be exhausted before any action for judicial review may be brought against FCIC. Environmental Evaluation This action is not expected to have a significant economic impact on the quality of the human environment, health, or safety. Therefore, neither an Environmental Assessment nor an Environmental Impact Statement is needed. List of Subjects in 7 CFR Part 400 Administrative practice and procedure, crop insurance, reporting and recordkeeping requirements. Final Rule Accordingly, as set forth in the preamble, FCIC amends 7 CFR part 400 as follows: PART 400—GENERAL ADMINISTRATIVE REGULATIONS 1. Revise subpart L to read as follows: Subpart L—Reinsurance Agreement—Standards for Approval; Regulations for the 2019 and Subsequent Reinsurance Years Sec. 400.161 Definitions. 400.162 Qualification ratios. 400.163 Applicability. 400.164 Eligibility for a Reinsurance Agreement. 400.165-400.168 [Reserved] 400.169 Disputes. 400.170-400.177 [Reserved] Authority: 7 U.S.C. 1506(l), 1506(o) Subpart L—Reinsurance Agreement—Standards for Approval; Regulations for the 2019 and Subsequent Reinsurance Years. § 400.161 Definitions. In addition to the terms defined in the Standard Reinsurance Agreement, Livestock Price Reinsurance Agreement and any other Reinsurance Agreement, the following terms as used in this rule are defined to mean: *Annual statutory financial statement* means the annual financial statement of a Company prepared in accordance with Statutory Accounting Principles and submitted to the state insurance department if required by any state in which the Company is licensed. *Company* means the insurance company that currently has or is applying to FCIC for a Reinsurance Agreement. *FCIC* means the Federal Crop Insurance Corporation as authorized in section 503 of the Federal Crop Insurance Act (7 U.S.C. 1503). *MPUL* means the maximum possible underwriting loss that a Company can sustain on policies it intends to reinsure after adjusting for the effect of any Reinsurance Agreement and any private reinsurance, as evaluated by FCIC. *Plan of Operations* means the documentation and information submitted by a Company to apply for or maintain a Reinsurance Agreement as required by FCIC. *Quarterly Statutory Financial Statement* means the quarterly financial statement of a Company prepared in accordance with Statutory Accounting Principles and submitted to the state insurance department if required by any state in which the Company is licensed. *Reinsurance Agreement* means the Standard Reinsurance Agreement, Livestock Price Reinsurance Agreement or any other Reinsurance Agreement between the Company and FCIC. § 400.162 Qualification ratios.

(a)The eighteen qualification ratios include:

(1)Thirteen National Association of Insurance Commissioner's

(NAIC)Insurance Regulatory Information System

(IRIS)ratios found in paragraphs (b)(1) through

(12)and

(17)of this section and referenced in “Using the NAIC Insurance Regulatory Information System” distributed by NAIC, 1100 Walnut St., Suite 1500, Kansas City, MO 64106-2197;

(2)Three ratios used by A.M. Best Company found in paragraphs (b)(13), (15), and

(16)of this section and referenced in Best's Key Rating Guide, A.M. Best, Ambest Road, Oldwick, N.J. 08858-0700;

(3)One ratio found in paragraph (b)(14) of this section which is formulated by FCIC and is calculated the same as the One-Year Change to Surplus IRIS ratio but for a two-year period; and

(4)One ratio found in paragraph (b)(18) of this section, which is reported on the annual statutory financial statement.

(b)The Company shall provide an explanation for any ratio falling outside of the following requirements in paragraphs (b)(1) through (18): Ratio Ratio requirement

(1)Gross Premium Written to Policyholders Surplus <900%

(2)Net Premium Written to Policyholders Surplus <300%

(3)Change in Net Premiums Writings −33% to 33%

(4)Surplus Aid to Policyholders Surplus <15%

(5)Two-Year Overall Operating Ratio <100%

(6)Change in Policyholders Surplus −10% to 50%

(7)Investment Yield 3.0% to 6.5%

(8)Liabilities to Liquid Assets <100%

(9)Gross Agents Balances to Policyholders Surplus <40%

(10)One Year Reserve Development to Policyholders Surplus <20%

(11)Two Year Reserve Development to Policyholders Surplus <20%

(12)Estimated Current Reserve Deficiency to Policyholders Surplus <25%

(13)Combined Ratio after Policyholder Dividend <115%

(14)Two Year Change in Surplus >−10%

(15)Quick Liquidity >20%

(16)Return on Surplus >−5%

(17)Net Change in Adjusted Policyholder Surplus −10% to 25%

(18)Risk Based Capital Ratio > 200% § 400.163 Applicability. The standards contained herein shall be applicable to a Company applying for and those maintaining a Reinsurance Agreement. § 400.164 Eligibility for a Reinsurance Agreement. FCIC will offer a Reinsurance Agreement to an eligible Company as determined by FCIC. To be eligible and qualify initially or thereafter for a Reinsurance Agreement with FCIC, a Company must:

(a)Be licensed or admitted in any state, territory, or possession of the United States;

(b)Be licensed or admitted, or use as a policy-issuing company, an insurance company that is licensed or admitted, in each state where the Company will write policies under a Reinsurance Agreement;

(c)Have surplus, as reported in its most recent Annual or Quarterly Statutory Financial Statement, that is at least equal to twice the MPUL amount for the Company's estimated retained premium submitted in its plan of operation.

(d)The Company shall have the financial and operational resources, including but not limited to, organization, experience, internal controls, technical skills, positive assessment of the ratio results appearing in Section 400.162 as well as meet methodologies, data submission requirements and assessment contained in Appendix II (Plan of Operations) of the Reinsurance Agreement to meet the requirements, including addressing reasonable risks, associated with a Reinsurance Agreement, as determined by FCIC.

(e)The Company shall provide data and demonstrate a satisfactory performance record to obtain a Reinsurance Agreement and continue to hold a Reinsurance Agreement for the reinsurance year as determined by FCIC. § 400.165-400.168 [Reserved] § 400.169 Disputes.

(a)If the Company believes that the FCIC has taken an action that is not in accordance with the provisions of a Reinsurance Agreement except compliance issues, it may request the Deputy Administrator of Insurance Services to make a final administrative determination addressing the disputed action. The Deputy Administrator of Insurance Services will render the final administrative determination of the FCIC with respect to the applicable actions. All requests for a final administrative determination must be in writing and submitted within 45 days after receipt after the disputed action.

(b)With respect to compliance matters, the Compliance Field Office renders an initial finding, permits the Company to respond, and then issues a final finding. If the Company believes that the Compliance Field Office's final finding is not in accordance with the applicable laws, regulations, custom or practice of the insurance industry, or FCIC approved policy and procedure, it may request the Deputy Administrator of Compliance to make a final administrative determination addressing the disputed final finding. The Deputy Administrator of Compliance will render the final administrative determination of the FCIC with respect to the final finding. All requests for a final administrative determination must be in writing and submitted within 45 days after receipt of the final finding.

(c)A Company may also request reconsideration by the Deputy Administrator of Insurance Services of a decision of the FCIC rendered under any FCIC bulletin or directive which bulletin or directive does not interpret, explain, or restrict the terms of the Reinsurance Agreement. The Company, if it disputes the FCIC's determination, must request a reconsideration of that determination in writing, within 45 days of the receipt of the determination. The determination of the Deputy Administrator of Insurance Services will be final and binding on the Company. Such determinations will not be appealable to the Board of Contract Appeals.

(d)Appealable final administrative determinations of the FCIC under paragraph

(a)or

(b)of this section may be appealed to the Board of Contract Appeals in accordance with 48 CFR part 6102 and with the provisions 7 CFR part 24. § 400.170-400.177 [Reserved] Martin R. Barbre, Manager, Federal Crop Insurance Corporation. [FR Doc. 2018-21699 Filed 10-10-18; 8:45 am]

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