Viewing an earlier version · effective Dec 30, 2016View current (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 133 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)(7)(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 important.
- (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 § 50.74(c).