[Federal Register Volume 74, Number 156 (Friday, August 14, 2009)]
[Rules and Regulations]
[Pages 41035-41037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-19517]


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DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 801

[Docket No. 0807311007-91137-02]
RIN 0691-AA69


International Services Surveys: BE-140, Benchmark Survey of 
Insurance Transactions by U.S. Insurance Companies with Foreign Persons

AGENCY: Bureau of Economic Analysis, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends the Bureau of Economic Analysis' (BEA) 
regulations to set forth the reporting requirements for a new mandatory 
Benchmark Survey of Insurance Transactions by U.S. Insurance Companies 
with Foreign Persons. The survey will collect data on cross-border 
reinsurance and other insurance transactions from U.S. insurance 
companies. The BE-140 survey will be conducted every five years with 
the first survey covering calendar year 2008. The BE-140 survey data 
will be used by BEA to estimate the insurance services component of the 
U.S. International Transactions Accounts (ITAs) and other economic 
accounts compiled by BEA.

DATES: This final rule will be effective. September 14, 2009.

FOR FURTHER INFORMATION CONTACT: Chris Emond, Chief, Special Surveys 
Branch, Balance of Payments Division, (BE-50) Bureau of Economic 
Analysis, U.S. Department of Commerce, Washington, DC 20230; e-mail; or 
phone (202) 606-9826.

SUPPLEMENTARY INFORMATION: In the April 10, 2009 Federal Register (74 
FR 16337), BEA published a notice of proposed rulemaking to amend 15 
CFR 801.9(a) to set forth the reporting requirements for a new 
mandatory survey entitled BE-140, Benchmark Survey of Insurance 
Transactions by U.S. Insurance Companies with Foreign Persons. No 
comments were received on the proposed rule. Thus, the proposed rule is 
adopted without change.

Description of Changes

    The BE-140 survey is a mandatory survey and will be conducted by 
BEA every five years, with the first survey covering calendar year 
2008, pursuant to the authority provided in the International 
Investment and Trade in Services Survey Act (22 U.S.C. 3101-3108), 
hereinafter, ``the Act.'' For the initial survey, BEA will send the 
survey to potential respondents in September of 2009; responses will be 
due by December 1, 2009.
    The BE-140 survey will collect information from U.S. insurance 
companies on the following covered transactions: Reinsurance assumed 
from or ceded to insurance companies resident abroad, primary insurance 
sold to foreign persons, and receipts and payments of auxiliary 
insurance services. The specific data that will be collected on the 
survey are: (1) Premiums earned, and (2) losses, on reinsurance 
assumed; (3) premiums incurred, and (4) losses, on reinsurance ceded; 
(5) premiums earned, and (6) losses, on primary insurance sold; (7) 
sales of, and (8) purchases of, auxiliary insurance services. The 
exemption level for the survey is $2 million based on

[[Page 41036]]

one of the eight categories listed above. Insurance companies that 
exceed this threshold must supply data on the amount of their insurance 
transactions for each category, disaggregated by country.
    U.S. insurance companies that are exempt from the reporting 
requirements because they do not meet the criteria for reporting on the 
BE-140 survey form are requested to provide, on a voluntary basis, the 
estimates of their covered insurance transactions. Any U.S. insurance 
company that receives the BE-140 survey form from BEA, but that is not 
required to report data because it is exempt under the regulations, 
must provide information on the reason why it is exempt. This 
requirement is necessary to ensure compliance with reporting 
requirements and efficient administration of the Act by eliminating 
unnecessary follow-up contact. If a U.S. insurance company does not 
receive the BE-140 survey form and is not otherwise required to report 
under these regulations, then the company is not required to take any 
action.

Survey Background

    BEA conducts the survey pursuant to authority provided in section 
4(a) of the Act (22 U.S.C. 3103(a)), which provides that the President 
shall, to the extent he deems necessary and feasible, conduct a regular 
data collection program to secure current information related to 
international investment and trade in services and publish for the use 
of the general public and United States Government agencies periodic, 
regular, and comprehensive statistical information collected pursuant 
to this subsection.
    In section 3 of Executive Order 11961, as amended by Executive 
Orders 12318 and 12518, the President delegated the responsibilities 
under the Act for performing functions concerning international trade 
in services to the Secretary of Commerce, who has redelegated them to 
BEA.
    Data from the BE-140 survey are needed to monitor U.S. exports and 
imports of insurance services and other international insurance 
transactions; analyze their impact on the U.S. and foreign economies; 
compile and improve the U.S. international transactions, national 
income and product, and input-output accounts; support U.S. 
international trade policy on insurance services; assess and promote 
U.S. competitiveness in international trade in services; and improve 
the ability of U.S. businesses to identify and evaluate market 
opportunities.

Executive Order 12866

    This final rule has been determined to be not significant for 
purposes of E.O. 12866.

Executive Order 13132

    This final rule does not contain policies with Federalism 
implications sufficient to warrant preparation of a Federalism 
Assessment under E.O. 13132.

Paperwork Reduction Act

    The collection-of-information in this final rule has been approved 
by the Office of Management and Budget (OMB) under control number 0608-
0073 pursuant to the requirements of the Paperwork Reduction Act.
    Notwithstanding any other provisions of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act unless that collection 
displays a currently valid Office of Management and Budget Control 
Number. The collection will display this number.
    The BE-140 benchmark survey is expected to result in the filing of 
reports from approximately 1000 respondents. Of this number, 
approximately 500 respondents would report mandatory or voluntary data 
on the survey and approximately 500 respondents would not report data 
but would respond with the required statement of exemption. The 
respondent burden for this collection of information would vary from 
one respondent to another, but is estimated to average 8 hours 
annually, including time for reviewing the instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information for the 
respondents that file mandatory or voluntary data and one hour for 
respondents that do not report data. Thus, the total respondent burden 
for the survey is estimated at 4,500 hours.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
final rule should be sent to (1) The Bureau of Economic Analysis via 
mail to U.S. Department of Commerce, Bureau of Economic Analysis, Chris 
Emond, Chief, Special Surveys Branch (BE-50), Washington, DC 20230, via 
e-mail at <a href="/cdn-cgi/l/email-protection#fa99928893898e958a929f88d49f9795949eba989f9bd49d958c"><span class="__cf_email__" data-cfemail="55363d273c26213a253d30277b30383a3b31153730347b323a23">[email protected]</span></a>, or by FAX at 202-606-5318; and (2) 
the Office of Management and Budget, O.I.R.A., Paperwork Reduction 
Project 0608-0073, PRA Desk Officer for BEA, via e-mail at 
<a href="/cdn-cgi/l/email-protection#502032253737103f3d327e353f207e373f26"><span class="__cf_email__" data-cfemail="a2d2c0d7c5c5e2cdcfc08cc7cdd28cc5cdd4">[email protected]</span></a>, or by FAX at 202-395-7245.

Regulatory Flexibility Act

    The Chief Counsel for Regulation, Department of Commerce, has 
certified to the Chief Counsel for Advocacy, Small Business 
Administration, under provisions of the Regulatory Flexibility Act (5 
U.S.C. 605(b)), that this rule will not have a significant economic 
impact on a substantial number of small entities. The factual basis for 
this certification was published with the proposed rule. No comments 
were received regarding the economic impact of this rule. As a result, 
no final regulatory flexibility analysis was prepared.

List of Subjects in 15 CFR Part 801

    International transactions, Economic statistics, Foreign trade, 
Penalties, Reporting and recordkeeping requirements.

    Dated: July 2, 2009.
J. Steven Landefeld,
Director, Bureau of Economic Analysis.

0
For the reasons set forth in the preamble, BEA amends 15 CFR part 801, 
as follows:

PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S. 
AND FOREIGN PERSONS

0
1. The authority citation for 15 CFR part 801 continues to read as 
follows:

    Authority:  5 U.S.C. 301; 15 U.S.C. 4908; 22 U.S.C. 3101-3108; 
and E.O. 11961, 3 CFR, 1977 Comp., p. 86, as amended by E.O. 12318, 
3 CFR, 1981 Comp., p. 173, and E.O. 12518, 3 CFR, 1985 Comp., p 348.


0
2. Revise Sec.  801.9(a) to read as follows:


Sec.  801.9  Reports required.

    (a) Benchmark surveys. Section 4(a)(4) of the Act (22 U.S.C. 3103) 
provides that benchmark surveys of trade in services between U.S. and 
unaffiliated persons be conducted, but not more frequently than every 5 
years. General reporting requirements, exemption levels, and the years 
of coverage for the BE-120 survey may be found in Sec.  801.10; general 
reporting requirements, exemption levels, and the years of coverage for 
the BE-80 survey may be found in Sec.  801.11; and general reporting 
requirements, exemption levels, and the years for coverage for the BE-
140 survey may be found in Sec.  801.12: More detailed instructions are 
given on the forms themselves.
* * * * *

0
3. Add Sec.  801.12 to read as follows:

[[Page 41037]]

Sec.  801.12  Rules and regulations for the BE-140, Benchmark Survey of 
Insurance Transactions by U.S. Insurance Companies with Foreign 
Persons.

    (a) The BE-140, Benchmark Survey of Insurance Transactions by U.S. 
Insurance Companies with Foreign Persons, will be conducted covering 
calendar year 2008 and every fifth year thereafter. All legal 
authorities, provisions, definitions, and requirements contained in 
Sec.  801.1 through Sec.  801.9(a) are applicable to this survey. More 
detailed instructions and descriptions of the individual types of 
transactions covered are given on the report form itself. The BE-140 
consists of three parts and two schedules. Part 1 requests information 
on whom to consult concerning questions about the report and the 
certification section. Part 2 requests information about the reporting 
insurance company. Part 3 requests information needed to determine 
whether a report is required, the types of transactions that would be 
reported, and which schedules apply. Each of the two schedules covers 
the types of insurance services to be reported and the ownership 
relationship between the U.S. insurance company and foreign transactor 
and is to be completed only if the U.S. insurance company has 
transactions of the types covered by the particular schedule.
    (b) Who must report.
    (1) Mandatory reporting. A BE-140 report is required from each U.S. 
insurance company with respect to the transactions listed below, if any 
of the eight items was greater than $2 million or less than negative $2 
million for the calendar year covered by the survey on an accrual 
basis:
    (i) Premiums earned, and
    (ii) Losses, on reinsurance assumed;
    (iii) Premiums incurred, and
    (iv) Losses, on reinsurance ceded;
    (v) Premiums earned, and
    (vi) Losses, on primary insurance sold;
    (vii) Sales of, and
    (viii) Purchases of, auxiliary insurance services.
    U.S. insurance companies that file pursuant to this mandatory 
reporting requirement must complete parts 1 through 3 of Form BE-140 
and all applicable schedules. The total amounts of transactions 
applicable to a particular schedule are to be entered in the 
appropriate column(s) and these amounts must be distributed among the 
countries involved in the transactions.
    (2) Voluntary reporting. If, during the calendar year covered, the 
U.S. insurance company's transactions do not exceed the exemption level 
for any of the types of transactions covered by the survey, the U.S. 
person is requested to provide an estimate of the total for each type 
of transaction. Submission of this information is voluntary. The 
estimates may be judgmental, that is, based on recall, without 
conducting a detailed records search.
    (3) Any U.S. insurance company that receives the BE-140 survey form 
from BEA, but is not reporting data in either the mandatory or 
voluntary section of the form, must complete Parts 1 through 3 of the 
survey. This requirement is necessary to ensure compliance with 
reporting requirements and efficient administration of the Act by 
eliminating unnecessary follow-up contact.
    (c) Covered types of insurance transactions. The BE-140 survey is 
intended to collect information on U.S. international insurance 
transactions. The types of insurance transactions covered are: 
Reinsurance assumed from or ceded to insurance companies resident 
abroad, primary insurance sold to foreign persons, and receipts and 
payments of auxiliary insurance services.

[FR Doc. E9-19517 Filed 8-13-09; 8:45 am]
BILLING CODE 3510-06-P


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