§ 50.92. Establishment of Federal terrorism policy surcharge.
210 words·~1 min read·
/us/cfr/t31/s§ 50.92·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Treasury will establish the Federal terrorism policy surcharge based on the following factors and considerations:
(1)In the case of a mandatory recoupment amount, the requirement to collect 140 percent of that amount;
(2)The total dollar amount to be recouped as a percentage of the latest available annual aggregate industry direct written premium information;
(3)The adjustment factors for terrorism loss risk-spreading premiums described in section 103(e)(8)(D) of the Act;
(4)The annual 3 percent limitation on terrorism loss risk-spreading premiums collected on a discretionary basis as provided in section 103(e)(8)(C) of the Act;
(5)A preferred minimum initial assessment period of one full year and subsequent extension periods in full year increments;
(6)The collection timing requirements of section 103(e)(8)(E) of the Act;
(7)The likelihood that the amount of the Federal terrorism policy surcharge may result in the collection of an aggregate recoupment amount in excess of the planned recoupment amount; and
(8)Such other factors as the Secretary considers appropriate to take into account.
(b)The Federal terrorism policy surcharge shall be the obligation of the policyholder and is payable to the insurer with the premium for a property and casualty insurance policy in effect during the assessment period established by Treasury. See § 50.94(c).