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Thursday, December 22, 2016

FIO Finalizes Remainder of TRIA Regulations

The Federal Insurance Office (FIO) has released the attached final rule implementing the rest of the TRIA regulations contemplated in this spring’s proposed rulemaking. This was expected to be published in the Federal Register on December 21 and will go into effect on January 17, 2017. In general, there are relatively few changes between the proposed rulemaking and the final rule, reflecting the fact that many of the changes were dictated by the latest reauthorization and fairly noncontroversial to begin with.

The rule does address a concern with captives the ABA had earlier this year. The American Bankers Association bank insurance subsidiary submitted a comment letter to the FIO back in May arguing that the definition of “small insurer” should not exclude captives. Treasury has noted that captives are essentially controlled by the insured and thus do not face the same sort of competitive challenges that small insurers face which led Congress to require the small insurer study. This led to a concern that captives might not be exempted from FIO’s annual data calls if they are not considered “small insurers”. Treasury has indicated that their modification of the data call rules permits Treasury to modify data requests by type of insurer. Specifically, “Treasury intends to develop data requests for participating captive insurers that will be tailored to the manner in which these entities participate in the Program, which will allow such insurers to provide necessary information in an efficient fashion.”

Read the final rule.

Read the ABA comment letter.

If you have any questions, please contact Sarah Ferman at sferman@aba.com.