50.74—Collecting the Surcharge.
(a)
Insurers shall collect a Federal Terrorism
Policy Surcharge from policyholders as required by
Treasury.
(b)
Policies subject to the Federal Terrorism
Policy Surcharge are those for which direct
written premium is reported on commercial lines of
business on the NAIC's Exhibit of Premiums and
Losses of the NAIC Annual Statement (commonly
known as Statutory Page 14) as provided in §
50.5(u)(1), or equivalently reported.
(c)
For policies subject to the Federal
Terrorism Policy Surcharge, the Surcharge shall be
imposed and collected on a written premium basis
for policies that incept or renew during the
assessment period. All new, renewal, mid-term, and
audit premiums for a policy term are subject to
the Surcharge in effect on the policy term
effective date. Notwithstanding this paragraph, if
the premium for a policy term that would otherwise
be subject to the Surcharge is revised after the
end of the reporting period described in §
50.75(e), then any additional premium attributable
to such revision is not subject to the Surcharge.
For purposes of this subpart:
(1)
Written premium basis means the premium
amount charged a policyholder by an insurer for
property and casualty insurance as defined in §
50.5(u), including all premiums, policy expense
constants and fees defined as premium pursuant to
the Statements of Statutory Accounting Principles
established by the National Association of
Insurance Commissioners, as adopted by the state
for which the premium will be reported.
(2)
In the case of a policy providing multiple
insurance coverages, if an insurer cannot identify
the premium amount charged a policyholder
specifically for property and casualty insurance
under the policy, then:
(i)
If the insurer estimates that the portion
of the premium amount charged for coverage other
than property and casualty insurance is de minimis to the total premium for the
policy, the insurer may impose and collect from
the policyholder a Surcharge amount based on the
total premium for the policy, but
(ii)
If the insurer estimates that the portion
of the premium amount charged for coverage other
than property and casualty insurance is not de minimis, the insurer shall impose
and collect from the policyholder a Surcharge
amount based on a reasonable estimate of the
premium amount for the property and casualty
insurance coverage under the policy.
(d)
A policyholder must pay the applicable
Federal Terrorism Policy Surcharge when due. The
insurer shall have such rights and remedies to
enforce the collection of the Surcharge that are
the equivalent to those that exist under
applicable state or other law for nonpayment of
premium.
(e)
When an insurer returns an unearned
premium, or otherwise refunds premium to a
policyholder, it shall also return any Federal
Terrorism Policy Surcharge collected that is
attributable to the refunded premium.
Notwithstanding this paragraph, if the written
premium for a policy is revised and refunded after the end of the reporting
period described in § 50.75(e), then the insurer
is not required to refund any Surcharge that is
attributable to the refunded premium.
(f)
(c)
hstanding paragraphs (a), (b), and
(c) of this section, if the expense of collecting
the Federal Terrorism Policy Surcharge from all
policyholders of an insurer during an assessment
period exceeds the amount of the Surcharges
anticipated to be collected, such insurer may
satisfy its obligation to collect by omitting
actual collection and instead remitting to
Treasury the amount otherwise due.
(g)
The Federal Terrorism Policy Surcharge is
repayment of Federal financial assistance in an
amount required by law. No fee or commission shall
be charged on the Federal Terrorism Policy
Surcharge.