50.51—Adjustments to the Federal share of compensation.
(a)
Aggregate amount of insured
losses. The aggregate amount of insured losses
of an insurer in a Program Year used to calculate
the Federal share of compensation shall be reduced
by any amounts recovered by the insurer as salvage
or subrogation for its insured losses in the
Program Year.
(b)
Amount of Federal share of
compensation. The Federal share of
compensation shall be adjusted as follows:
(1) No excess recoveries.
For any
Program Year, the sum of the Federal share of
compensation paid by Treasury to an insurer and
the insurer's recoveries for insured losses from
other sources shall not be greater than the
insurer's aggregate amount of insured losses for acts of terrorism in that
Program Year. Amounts recovered for insured losses
in excess of an insurer's aggregate amount of
insured losses in a Program Year shall be repaid
to Treasury within 45 days after the end of the
month in which total recoveries of the insurer,
from all sources, become excess. For purposes of
this paragraph, amounts recovered from a reinsurer
pursuant to an agreement whereby the reinsurer's
right to any excess recovery has priority over the
rights of Treasury shall not be considered a
recovery subject to repayment to Treasury.
(2) Reduction of amount payable.
The Federal share of compensation for insured
losses under the Program shall be reduced by the
amount of other compensation provided by other
Federal programs to an insured or a third party to
the extent such other compensation duplicates the
insurance indemnification for those insured
losses.
(i)
Other Federal program
compensation. For purposes of this section,
compensation provided by other Federal programs
for insured losses means compensation that is
provided by Federal programs established for the
purpose of compensating persons for losses in the
event of emergencies, disasters, acts of
terrorism, or similar events. Compensation
provided by Federal programs for insured losses
excludes benefit or entitlement payments, such as
those made under the Social Security Act, under
laws administered by the Secretary of Veteran
Affairs, railroad retirement benefit payments, and
other similar types of benefit payments.
(ii) Insurer due diligence.
Each
insurer shall inquire of each of its
policyholders, insureds, and claimants whether the
person receiving insurance proceeds for an insured
loss has received, expects to receive, or is
entitled to receive compensation from another
Federal program for the insured loss, and if so,
the source and the amount of the compensation
received or expected. The response, source, and
such amounts shall be reported with each
underlying claim on the bordereau specified in §
50.53(b)(1).