CHARTER

ADVISORY COMMITTEE ON RISK-SHARING MECHANISMS FOR REINSURANCE,
AGAINST LOSSES ARISING FROM ACTS OF TERRORISM

1. Committee’s Official Designation (Title), Advisory Committee on Risk-Sharing Mechanisms
(ACRSM or Committee).

2. Authority. This Charter is prepared and filed in accordance with the Federal Advisory
Committee Act (FACA), as amended, 5 U.S.C. App. 2, and § 110 of the Terrorism Risk
Insurance Program Reauthorization Act of 2015.

3. Objective and Scope of Activities. The purpose of the ACRSM is to provide advice and
recommendations to the U.S. Department of the Treasury through the Federal Insurance Office
(FIO) with respect to the creation and development of non-governmental, private market risk-
sharing mechanisms for protection against losses arising from acts of terrorism.

4. Description of Duties. The duties of the ACRSM shall be solely advisory and shall extend only
to the submission of advice, recommendations, and encouragement to FIO, which shall be non-
binding on FIO. No determination of fact or policy may be made by the ACRSM, but the
perspectives and expertise of its members shall form the basis for its participation.

5. Official to Whom the Committee Reports. The Committee reports to the Director of FIO,

6. Support, FIO and its related offices and professionals in the U.S. Department of the Treasury
shall provide the necessary support to the ACRSM.

7. Estimated Annual Operating Cost and Staff Years, The estimated annual operating costs of the
ACRSM are approximately $100,000.00. Annual operating costs include travel expenses for
members, staff salary, and other operating expenses. Members shall not be paid for their time or
service on the ACRSM. Members shall be reimbursed for their travel-related expenses to attend
meetings in accordance with 5 U.S.C. § $703 (as for persons intermittently in the government

service).

8. Designated Federal Officer (DFO). The DFO (or designee) is a full-time federal employee who
will be appointed by the FIO Director and shall be responsible for the Committee’s compliance
with the requirements of FACA and its implementing regulations. The DFO will approve or call
all of the meetings of the Committee and its subcommittee(s) (if any), prepare and approve alt
meeting agendas, attend all Committee and subcommittee meetings, adjourn any meeting when.
determined to be in the public interest, and chair meetings when directed by the FIO Director.

9, Estimated Number and Frequency of Meetings, The ACRSM shall meet at such intervals as are
necessary to carry out its duties. It is estimated that the ACRSM will meet twice per year.

10. Duration, This is a continuing advisory committee subject to the termination pursuant to
paragraph 11 of this Charter.



11. Termination. Continuing.

12. Membership. The body of the ACRSM shall consist of nine members. The Department of the
Treasury shall take appropriate steps so that the Advisory Committee on Risk-Sharing Mechanisms
reflects balanced membership and includes a cross-section of members consisting of directors,
officers, or other employees of insurers, reinsurers, and capital market participants that are
representative of the affected sectors of the insurance industry including commercial property
insurance, commercial casualty insurance, reinsurance, and alternative risk transfer industries.

13. Subcommittees. The DFO has the authority to create subcommittees that must report back to the
ACRSM. The subcommittees, if any, may not provide advice or work products directly to FIO or to
other offices of the Department of the Treasury.

14. Recordkeeping. The records of the ACRSM and its subcommittee(s) will be handled in accordance
with the General Records Schedule 26, Item 2. The records will be available for public inspection
and copying, subject to the Freedom of Information Act, 5 U.S.C. 552.

15. Filing Date. The Filing Date of this Charter is April 8, 2015

Approved:

Low ae: 2/1 IT

Amias Gerety
Acting Assistant Secretary for Financial Institutions

Date: 3 0 75

Br6di Fontendt
Assistant Secretary for Management