83 FR 5573 - General Administrative Regulations; Subpart L-Reinsurance Agreement-Standards for Approval; Regulations for the 2019 and Subsequent Reinsurance Years

DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation

Federal Register Volume 83, Issue 27 (February 8, 2018)

Page Range		5573-5576
FR Document		2018-02489
The Federal Crop Insurance Corporation (FCIC) proposes to revise the General Administrative Regulations; Subpart L--Reinsurance Agreement--Standards for Approval; Regulations for the 2019 and Subsequent Reinsurance Years. The intended effect of this action is to clarify and improve Subpart L to better align with the existing Standard Reinsurance Agreement (SRA) and Livestock Price Reinsurance Agreement (LPRA) and to eliminate language that is no longer relevant.
Federal Register, Volume 83 Issue 27 (Thursday, February 8, 2018)
[Federal Register Volume 83, Number 27 (Thursday, February 8, 2018)]
[Proposed Rules]
[Pages 5573-5576]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-02489]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 83, No. 27 / Thursday, February 8, 2018 / 
Proposed Rules

[[Page 5573]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 400

[Docket No. FCIC-17-0005]
RIN 0563-AC54


General Administrative Regulations; Subpart L--Reinsurance 
Agreement--Standards for Approval; Regulations for the 2019 and 
Subsequent Reinsurance Years

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
revise the General Administrative Regulations; Subpart L--Reinsurance 
Agreement--Standards for Approval; Regulations for the 2019 and 
Subsequent Reinsurance Years. The intended effect of this action is to 
clarify and improve Subpart L to better align with the existing 
Standard Reinsurance Agreement (SRA) and Livestock Price Reinsurance 
Agreement (LPRA) and to eliminate language that is no longer relevant.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business April 9, 2018 and will be considered 
when the rule is made final.

ADDRESSES: FCIC prefers that comments be submitted electronically 
through the Federal eRulemaking Portal. You may submit comments, 
identified by Docket ID No. FCIC-17-0005, by any of the following 
methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     By Mail to: Director, Reinsurance Services Division, 
Federal Crop Insurance Corporation, United States Department of 
Agriculture (USDA), 1400 Independence Avenue SW, Stop 0801, Washington, 
DC 20250.
    All comments received, including those received by mail, will be 
posted without change to http://www.regulations.gov, including any 
personal information provided, and can be accessed by the public. All 
comments must include the agency name and docket number or Regulatory 
Information Number (RIN) for this rule. For detailed instructions on 
submitting comments and additional information, see http://www.regulations.gov. If you are submitting comments electronically 
through the Federal eRulemaking Portal and want to attach a document, 
we ask that it be in a text-based format. If you want to attach a 
document that is a scanned Adobe PDF file, it must be scanned as text 
and not as an image, thus allowing FCIC to search and copy certain 
portions of your submissions. For questions regarding attaching a 
document that is a scanned Adobe PDF file, please contact the RMA Web 
Content Team at (816)823-4694 or by email at 
[email protected].

PRIVACY ACT:  Anyone is able to search the electronic form of all 
comments received for any dockets by the name of the person submitting 
the comment (or signing the comment, if submitted on behalf of an 
association, business, labor union, etc.). You may review the complete 
User Notice and Privacy Notice for Regulations.gov at http://www.regulations.gov/#!privacyNotice.

FOR FURTHER INFORMATION CONTACT: David L. Miller, Director, Reinsurance 
Services Division, Federal Crop Insurance Corporation, United States 
Department of Agriculture (USDA), 1400 Independence Avenue SW, Stop 
0801, Washington, DC 20250, telephone (202) 720-9830.

SUPPLEMENTARY INFORMATION:

Executive Orders 12866, 13563, and 13771

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasized the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility. The Office of 
Management and Budget (OMB) designated this rule as not significant 
under Executive Order 12866, ``Regulatory Planning and Review,'' and 
therefore, OMB has not reviewed this rule. The rule is not subject to 
Executive Order 13771, ``Reducing Regulation and Controlling Regulatory 
Costs.''

Paperwork Reduction Act of 1995

    Pursuant to the provisions of the Paperwork Reduction Act of 1995 
(44 U.S.C. chapter 35), the collections of information in this rule 
have been approved by the Office of Management and Budget (OMB) under 
control number 0563-0069.

E-Government Act Compliance

    FCIC is committed to complying with the E-Government Act of 2002, 
to promote the use of the internet and other information technologies 
to provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. This rule contains no Federal 
mandates (under the regulatory provisions of title II of the UMRA) for 
State, local, and tribal governments or the private sector. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

Executive Order 13132

    It has been determined under section 1(a) of Executive Order 13132, 
Federalism, that this rule does not have sufficient implications to 
warrant consultation with the States. The provisions contained in this 
rule will not have a substantial direct effect on States, or on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' Executive Order 13175

[[Page 5574]]

requires Federal agencies to consult and coordinate with tribes on a 
government-to-government basis on policies that have tribal 
implications, including regulations, legislative comments or proposed 
legislation, and other policy statements or actions that have 
substantial direct effects on one or more Indian tribes, on the 
relationship between the Federal Government and Indian tribes or on the 
distribution of power and responsibilities between the Federal 
Government and Indian tribes.
    FCIC has assessed the impact of this rule on Indian tribes and 
determined that this rule does not, to its knowledge, have tribal 
implications that require tribal consultation under E.O. 13175. If a 
Tribe requests consultation, FCIC will work with the Office of Tribal 
Relations to ensure meaningful consultation is provided where changes, 
additions and modifications identified herein are not expressly 
mandated by Congress.

Regulatory Flexibility Act

    FCIC certifies that this regulation will not have a significant 
economic impact on a substantial number of small entities. Program 
requirements for the Federal crop insurance program are the same for 
all producers regardless of the size of their farming operation. For 
instance, all producers are required to submit an application and 
acreage report to establish their insurance guarantees and compute 
premium amounts, and all producers are required to submit a notice of 
loss and production information to determine the amount of an indemnity 
payment in the event of an insured cause of crop loss. Whether a 
producer has 10 acres or 1000 acres, there is no difference in the kind 
of information collected. To ensure crop insurance is available to 
small entities, the Federal Crop Insurance Act (Act) authorizes FCIC to 
waive collection of administrative fees from beginning farmers or 
ranchers and limited resource farmers. FCIC believes this waiver helps 
to ensure that small entities are given the same opportunities as large 
entities to manage their risks through the use of Federal crop 
insurance. A Regulatory Flexibility Analysis has not been prepared 
since this regulation does not have an impact on small entities, and, 
therefore, this regulation is exempt from the provisions of the 
Regulatory Flexibility Act (5 U.S.C. 605). This regulation pertains to 
all legal entities wanting a Reinsurance Agreement, to insure financial 
stability and capacity under this regulation.

Federal Assistance Program

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.450.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which require intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988 on civil justice reform. The provisions of this rule will not 
have a retroactive effect. The provisions of this rule will preempt 
State and local laws to the extent such State and local laws are 
inconsistent herewith. Interpretations of statutory and regulatory 
provisions are matters of general applicability and, therefore, no 
administrative appeals process is available and judicial review may 
only be brought to challenge the interpretation after seeking a 
determination of appeal ability by the Director of the National Appeals 
Division (NAD) in accordance with 7 CFR part 11. An interpretation of a 
policy provision not codified in the Code of Federal Regulations or any 
procedure used in the administration of any Federal crop insurance 
program are administratively appealable and the appeal provisions 
published at 7 CFR part 11 must be exhausted before any action for 
judicial review may be brought against FCIC.

Environmental Evaluation

    This action is not expected to have a significant economic impact 
on the quality of the human environment, health, or safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

List of Subjects in 7 CFR Part 400

    Administrative practice and procedure, Crop insurance, Reporting 
and recordkeeping requirements.

Proposed Rule

    Accordingly, as set forth in the preamble, FCIC proposes to amend 7 
CFR part 400 to read as follows:

PART 400--GENERAL ADMINISTRATIVE REGULATIONS

0
1. The authority citation for 7 CFR part 400 continues to read as 
follows:

    Authority: 7 U.S.C. 1506(l), 1506(o).

0
2. Revise Subpart L to read as follows:

Subpart L--Reinsurance Agreement--Standards for Approval; 
Regulations for the 2019 and Subsequent Reinsurance Years

Sec.
400.161 Definitions.
400.162 Qualification ratios.
400.163 Applicability.
400.164 Eligibility for a Reinsurance Agreement.
400.165 [Reserved]
400.166 [Reserved]
400.167 [Reserved]
400.168 [Reserved]
400.169 Disputes.
400.170 [Reserved]
400.171 [Reserved]
400.172 [Reserved]
400.173 [Reserved]
400.174 [Reserved]
400.175 [Reserved]
400.176 [Reserved]
400.177 [Reserved]


Sec.  400.161  Definitions.

    In addition to the terms defined in the Standard Reinsurance 
Agreement, Livestock Price Reinsurance Agreement and any other 
Reinsurance Agreement, the following terms as used in this rule are 
defined to mean:
    Annual statutory financial statement means the annual financial 
statement of a Company prepared in accordance with Statutory Accounting 
Principles and submitted to the state insurance department if required 
by any state in which the Company is licensed.
    Company means the insurance company that currently has or is 
applying to FCIC for a Reinsurance Agreement.
    FCIC means the Federal Crop Insurance Corporation as authorized in 
section 503 of the Federal Crop Insurance Act (7 U.S.C. 1503).
    MPUL means the maximum possible underwriting loss that a Company 
can sustain on policies it intends to reinsure after adjusting for the 
effect of any Reinsurance Agreement and any private reinsurance, as 
evaluated by FCIC.
    Plan of operation means the documentation and information submitted 
by a Company to apply for or maintain a Reinsurance Agreement as 
required by FCIC.
    Quarterly Statutory Financial Statement means the quarterly 
financial statement of a Company prepared in accordance with Statutory 
Accounting Principles and submitted to the state insurance department 
if required by any state in which the Company is licensed.
    Reinsurance Agreement means the Standard Reinsurance Agreement, 
Livestock Price Reinsurance Agreement and any other Reinsurance 
Agreement between the Company and FCIC.

[[Page 5575]]

Sec.  400.162  Qualification ratios.

    (a) The eighteen qualification ratios include:
    (1) Thirteen National Association of Insurance Commissioner's 
(NAIC's) Insurance Regulatory Information System (IRIS) ratios found in 
subsections (b)(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), 
(12), and (17) of this section and referenced in ``Using the NAIC 
Insurance Regulatory Information System'' distributed by NAIC, 1100 
Walnut St., Suite 1500, Kansas City, MO 64106-2197;
    (2) Three ratios used by A.M. Best Company found in subsections 
(b)(13), (15), and (16) of this section and referenced in Best's Key 
Rating Guide, A.M. Best, Ambest Road, Oldwick, N.J. 08858-0700;
    (3) One ratio found in paragraph (b)(14) of this section which is 
formulated by FCIC and is calculated the same as the One-Year Change to 
Surplus IRIS ratio but for a two-year period; and
    (4) One ratio found in paragraph (b)(18) of this section, which is 
reported on the annual statutory financial statement.
    (b) The Company shall provide an explanation for any ratio falling 
outside of the requirements stated below.

------------------------------------------------------------------------
                     Ratio                          Ratio requirement
------------------------------------------------------------------------
(1) Gross Premium Written to Policyholders                         <900%
 Surplus.......................................
(2) Net Premium Written to Policyholders                           <300%
 Surplus.......................................
(3) Change in Net Premiums Writings............              -33% to 33%
(4) Surplus Aid to Policyholders Surplus.......                     <15%
(5) Two-Year Overall Operating Ratio...........                    <100%
(6) Change in Policyholders Surplus............              -10% to 50%
(7) Investment Yield...........................             3.0% to 6.5%
(8) Liabilities to Liquid Assets...............                    <100%
(9) Gross Agents Balances to Policyholders                          <40%
 Surplus.......................................
(10) One Year Reserve Development to                                <20%
 Policyholders Surplus.........................
(11) Two Year Reserve Development to                                <20%
 Policyholders Surplus.........................
(12) Estimated Current Reserve Deficiency to                        <25%
 Policyholders Surplus.........................
(13) Combined Ratio after Policyholder Dividend                    <115%
(14) Two Year Change in Surplus................                    >-10%
(15) Quick Liquidity...........................                     >20%
(16) Return on Surplus.........................                     >-5%
(17) Net Change in Adjusted Policyholder                     -10% to 25%
 Surplus.......................................
(18) Risk Based Capital Ratio..................                    >200%
------------------------------------------------------------------------

Sec.  400.163  Applicability.

    The standards contained herein shall be applicable to a Company 
applying for and those maintaining a Reinsurance Agreement.


Sec.  400.164   Eligibility for a Reinsurance Agreement.

    FCIC will offer a Reinsurance Agreement to an eligible Company as 
determined by FCIC. To be eligible and qualify initially or thereafter 
for a Reinsurance Agreement with FCIC, a Company must:
    (a) Be licensed or admitted in any state, territory, or possession 
of the United States;
    (b) Be licensed or admitted, or use as a policy-issuing company an 
insurance company that is licensed or admitted, in each state where the 
Company will write policies under a Reinsurance Agreement;
    (c) Have surplus, as reported in its most recent Annual or 
Quarterly Statutory Financial Statement, that is at least equal to 
twice the MPUL amount for the Company's estimated retained premium 
submitted in its plan of operation.
    (d) The Company shall have the financial and operational resources, 
including but not limited to, organization, experience, internal 
controls, and technical skills, positive assessment of the ratio 
results appearing in Section 400.162 as well as meeting methodologies, 
data submission requirements and assessment appearing in Appendix II 
(Plan of Operations) of the Reinsurance Agreement to meet the 
requirements, including addressing reasonable risks, associated with a 
Reinsurance Agreement, as determined by FCIC.
    (e) The Company shall provide data and demonstrate a satisfactory 
performance record to obtain a Reinsurance Agreement and continue to 
hold a Reinsurance Agreement for the reinsurance year as determined by 
FCIC.


Sec.  400.165   [Reserved]


Sec.  400.166   [Reserved]


Sec.  400.167   [Reserved]


Sec.  400.168   [Reserved]


Sec.  400.169  Disputes.

    (a) If the Company believes that the FCIC has taken an action that 
is not in accordance with the provisions of a Reinsurance Agreement 
except compliance issues, it may request the Deputy Administrator of 
Insurance Services to make a final administrative determination 
addressing the disputed action. The Deputy Administrator of Insurance 
Services will render the final administrative determination of the FCIC 
with respect to the applicable actions. All requests for a final 
administrative determination must be in writing and submitted within 45 
days after receipt after the disputed action.
    (b) With respect to compliance matters, the Compliance Field Office 
renders an initial finding or outcome, permits the Company to respond, 
and then issues a final finding or outcome. If the Company believes 
that the Compliance Field Office's final finding or outcome is not in 
accordance with the applicable laws, regulations, custom or practice of 
the insurance industry, or FCIC approved policy and procedure, it may 
request, the Deputy Administrator of Compliance to make a final 
administrative determination addressing the disputed final finding or 
outcome. The Deputy Administrator of Compliance will render the final 
administrative determination of the FCIC with respect to these issues. 
All requests for a final administrative determination must be in 
writing and submitted within 45 days after receipt of the final finding 
or outcome.
    (c) A Company may also request reconsideration by the Deputy 
Administrator of Insurance Services of a decision of the FCIC rendered 
under any FCIC bulletin or directive which bulletin or directive does 
not interpret, explain, or restrict the terms of the Reinsurance 
Agreement. The Company, if it disputes the FCIC's determination, must 
request a reconsideration of that

[[Page 5576]]

determination in writing, within 45 days of the receipt of the 
determination. The determination of the Deputy Administrator of 
Insurance Services will be final and binding on the Company. Such 
determinations will not be appealable to the Board of Contract Appeals.
    (d) Appealable final administrative determinations of the FCIC 
under paragraph (a) or (b) of this section may be appealed to the Board 
of Contract Appeals in accordance with 48 CFR part 6102 and with the 
provisions 7 CFR part 24.


Sec.  400.170   [Reserved]


Sec.  400.171   [Reserved]


Sec.  400.172   [Reserved]


Sec.  400.173   [Reserved]


Sec.  400.174   [Reserved]


Sec.  400.175   [Reserved]


Sec.  400.176   [Reserved]


Sec.  400.177   [Reserved]

    Signed in Washington, DC, on February 1, 2018.
Heather Manzano,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 2018-02489 Filed 2-7-18; 8:45 am]
 BILLING CODE 3410-08-P
5574 Federal Register / Vol. 83, No. 27 / Thursday, February 8, 2018 / Proposed Rules

requires Federal agencies to consult and Federal Assistance Program Subpart L—Reinsurance Agreement—
coordinate with tribes on a government- This program is listed in the Catalog Standards for Approval; Regulations
to-government basis on policies that of Federal Domestic Assistance under for the 2019 and Subsequent
have tribal implications, including No. 10.450. Reinsurance Years
regulations, legislative comments or
Executive Order 12372 Sec.
proposed legislation, and other policy 400.161 Definitions.
statements or actions that have This program is not subject to the 400.162 Qualification ratios.
substantial direct effects on one or more provisions of Executive Order 12372, 400.163 Applicability.
Indian tribes, on the relationship which require intergovernmental 400.164 Eligibility for a Reinsurance
between the Federal Government and consultation with State and local Agreement.
Indian tribes or on the distribution of officials. See the Notice related to 7 CFR 400.165 [Reserved]
power and responsibilities between the part 3015, subpart V, published at 48 FR 400.166 [Reserved]
29115, June 24, 1983. 400.167 [Reserved]
Federal Government and Indian tribes. 400.168 [Reserved]
FCIC has assessed the impact of this Executive Order 12988 400.169 Disputes.
rule on Indian tribes and determined This rule has been reviewed in 400.170 [Reserved]
that this rule does not, to its knowledge, accordance with Executive Order 12988 400.171 [Reserved]
400.172 [Reserved]
have tribal implications that require on civil justice reform. The provisions
400.173 [Reserved]
tribal consultation under E.O. 13175. If of this rule will not have a retroactive 400.174 [Reserved]
a Tribe requests consultation, FCIC will effect. The provisions of this rule will 400.175 [Reserved]
work with the Office of Tribal Relations preempt State and local laws to the 400.176 [Reserved]
to ensure meaningful consultation is extent such State and local laws are 400.177 [Reserved]
provided where changes, additions and inconsistent herewith. Interpretations of
statutory and regulatory provisions are § 400.161 Definitions.
modifications identified herein are not
expressly mandated by Congress. matters of general applicability and, In addition to the terms defined in the
therefore, no administrative appeals Standard Reinsurance Agreement,
Regulatory Flexibility Act process is available and judicial review Livestock Price Reinsurance Agreement
may only be brought to challenge the and any other Reinsurance Agreement,
FCIC certifies that this regulation will interpretation after seeking a the following terms as used in this rule
not have a significant economic impact determination of appeal ability by the are defined to mean:
on a substantial number of small Director of the National Appeals Annual statutory financial statement
entities. Program requirements for the Division (NAD) in accordance with 7 means the annual financial statement of
Federal crop insurance program are the CFR part 11. An interpretation of a a Company prepared in accordance with
same for all producers regardless of the policy provision not codified in the Statutory Accounting Principles and
size of their farming operation. For Code of Federal Regulations or any submitted to the state insurance
instance, all producers are required to procedure used in the administration of department if required by any state in
submit an application and acreage any Federal crop insurance program are which the Company is licensed.
report to establish their insurance administratively appealable and the Company means the insurance
guarantees and compute premium appeal provisions published at 7 CFR company that currently has or is
amounts, and all producers are required part 11 must be exhausted before any applying to FCIC for a Reinsurance
to submit a notice of loss and action for judicial review may be Agreement.
production information to determine the brought against FCIC. FCIC means the Federal Crop
amount of an indemnity payment in the Environmental Evaluation Insurance Corporation as authorized in
event of an insured cause of crop loss. section 503 of the Federal Crop
This action is not expected to have a Insurance Act (7 U.S.C. 1503).
Whether a producer has 10 acres or significant economic impact on the
1000 acres, there is no difference in the MPUL means the maximum possible
quality of the human environment,
kind of information collected. To ensure underwriting loss that a Company can
health, or safety. Therefore, neither an
crop insurance is available to small sustain on policies it intends to reinsure
Environmental Assessment nor an
entities, the Federal Crop Insurance Act after adjusting for the effect of any
Environmental Impact Statement is
(Act) authorizes FCIC to waive Reinsurance Agreement and any private
needed.
collection of administrative fees from reinsurance, as evaluated by FCIC.
beginning farmers or ranchers and List of Subjects in 7 CFR Part 400 Plan of operation means the
limited resource farmers. FCIC believes Administrative practice and documentation and information
this waiver helps to ensure that small procedure, Crop insurance, Reporting submitted by a Company to apply for or
and recordkeeping requirements. maintain a Reinsurance Agreement as
entities are given the same opportunities
required by FCIC.
as large entities to manage their risks Proposed Rule Quarterly Statutory Financial
through the use of Federal crop
Accordingly, as set forth in the Statement means the quarterly financial
insurance. A Regulatory Flexibility preamble, FCIC proposes to amend 7 statement of a Company prepared in
Analysis has not been prepared since CFR part 400 to read as follows: accordance with Statutory Accounting
this regulation does not have an impact
daltland on DSKBBV9HB2PROD with PROPOSALS

Principles and submitted to the state
on small entities, and, therefore, this PART 400—GENERAL insurance department if required by any
regulation is exempt from the provisions ADMINISTRATIVE REGULATIONS state in which the Company is licensed.
of the Regulatory Flexibility Act (5 Reinsurance Agreement means the
U.S.C. 605). This regulation pertains to ■ 1. The authority citation for 7 CFR
part 400 continues to read as follows: Standard Reinsurance Agreement,
all legal entities wanting a Reinsurance Livestock Price Reinsurance Agreement
Agreement, to insure financial stability Authority: 7 U.S.C. 1506(l), 1506(o). and any other Reinsurance Agreement
and capacity under this regulation. ■ 2. Revise Subpart L to read as follows: between the Company and FCIC.

VerDate Sep<11>2014 16:37 Feb 07, 2018 Jkt 244001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\08FEP1.SGM 08FEP1
5576 Federal Register / Vol. 83, No. 27 / Thursday, February 8, 2018 / Proposed Rules

determination in writing, within 45 DATES: We must receive comments on 2018–0031; Product Identifier 2017–
days of the receipt of the determination. this proposed AD by March 26, 2018. NM–127–AD’’ at the beginning of your
The determination of the Deputy ADDRESSES: You may send comments, comments. We specifically invite
Administrator of Insurance Services will using the procedures found in 14 CFR comments on the overall regulatory,
be final and binding on the Company. 11.43 and 11.45, by any of the following economic, environmental, and energy
Such determinations will not be methods: aspects of this NPRM. We will consider
appealable to the Board of Contract • Federal eRulemaking Portal: Go to all comments received by the closing
Appeals. http://www.regulations.gov. Follow the date and may amend this NPRM
(d) Appealable final administrative instructions for submitting comments. because of those comments.
determinations of the FCIC under • Fax: 202–493–2251. We will post all comments we
paragraph (a) or (b) of this section may • Mail: U.S. Department of receive, without change, to http://
be appealed to the Board of Contract Transportation, Docket Operations, M– www.regulations.gov, including any
Appeals in accordance with 48 CFR part 30, West Building Ground Floor, Room personal information you provide. We
6102 and with the provisions 7 CFR part W12–140, 1200 New Jersey Avenue SE, will also post a report summarizing each
24. Washington, DC 20590. substantive verbal contact we receive
• Hand Delivery: Deliver to Mail about this NPRM.
§ 400.170 [Reserved]
address above between 9 a.m. and 5 Discussion
§ 400.171 [Reserved] p.m., Monday through Friday, except
The FAA has examined the
Federal holidays.
§ 400.172 [Reserved] underlying safety issues involved in fuel
For service information identified in
tank explosions on several large
§ 400.173 [Reserved] this NPRM, contact Boeing Commercial
transport airplanes, including the
Airplanes, Attention: Contractual & Data
adequacy of existing regulations, the
§ 400.174 [Reserved] Services (C&DS), 2600 Westminster
service history of airplanes subject to
Blvd., MC 110–SK57, Seal Beach, CA those regulations, and existing
§ 400.175 [Reserved]
90740–5600; telephone 562–797–1717; maintenance practices for fuel tank
§ 400.176 [Reserved] internet https:// systems. As a result of those findings,
www.myboeingfleet.com. You may view we issued a final rule titled ‘‘Transport
§ 400.177 [Reserved] this service information at the FAA, Airplane Fuel Tank System Design
Signed in Washington, DC, on February 1, Transport Standards Branch, 1601 Lind Review, Flammability Reduction and
2018. Avenue SW, Renton, WA. For Maintenance and Inspection
Heather Manzano, information on the availability of this Requirements’’ (66 FR 23086, May 7,
Acting Manager, Federal Crop Insurance
material at the FAA, call 425–227–1221. 2001). In addition to new airworthiness
Corporation. It is also available on the internet at standards for transport airplanes and
[FR Doc. 2018–02489 Filed 2–7–18; 8:45 am]
http://www.regulations.gov by searching new maintenance requirements, that
for and locating Docket No. FAA–2018– rule included Amendment 21–78,
BILLING CODE 3410–08–P
0031. which established Special Federal
Examining the AD Docket Aviation Regulation No. 88 (‘‘SFAR 88’’)
at 14 CFR part 21. Subsequently, SFAR
DEPARTMENT OF TRANSPORTATION You may examine the AD docket on 88 was amended by Amendment 21–82
the internet at http:// (67 FR 57490, September 20, 2002;
Federal Aviation Administration www.regulations.gov by searching for corrected at 67 FR 70809, November 26,
and locating Docket No. FAA–2018– 2002) and Amendment 21–83 (67 FR
14 CFR Part 39 0031; or in person at Docket Operations 72830, December 9, 2002; corrected at
[Docket No. FAA–2018–0031; Product between 9 a.m. and 5 p.m., Monday 68 FR 37735, June 25, 2003, to change
Identifier 2017–NM–127–AD] through Friday, except Federal holidays. ‘‘21–72’’ to ‘‘21–83’’).
The AD docket contains this NPRM, the Among other actions, SFAR 88
RIN 2120–AA6417 regulatory evaluation, any comments requires certain type design (i.e., type
received, and other information. The certificate (TC) and supplemental type
Airworthiness Directives; The Boeing street address for Docket Operations
Company Airplanes certificate (STC)) holders to substantiate
(phone: 800–647–5527) is in the that their fuel tank systems can prevent
AGENCY: Federal Aviation ADDRESSES section. Comments will be ignition sources in the fuel tanks. This
Administration (FAA), DOT. available in the AD docket shortly after requirement applies to type design
receipt. holders for large turbine-powered
ACTION: Notice of proposed rulemaking
(NPRM). FOR FURTHER INFORMATION CONTACT: transport airplanes and for subsequent
Christopher Baker, Aerospace Engineer, modifications to those airplanes. It
SUMMARY: We propose to adopt a new Propulsion Section, FAA, Seattle ACO requires them to perform design reviews
airworthiness directive (AD) for certain Branch, 1601 Lind Avenue SW, Renton, and to develop design changes and
The Boeing Company Model 727 WA 98057–3356; phone: 425–917–6498; maintenance procedures if their designs
airplanes. This proposed AD was fax: 425–917–6590; email: do not meet the new fuel tank safety
prompted by significant changes made christopher.r.baker@faa.gov. standards. As explained in the preamble
daltland on DSKBBV9HB2PROD with PROPOSALS

to the airworthiness limitations (AWLs) SUPPLEMENTARY INFORMATION: to the final rule published on May 7,
related to fuel tank ignition prevention. 2001, we intended to adopt
This proposed AD would require Comments Invited
airworthiness directives to mandate any
revising the maintenance or inspection We invite you to send any written changes found necessary to address
program, as applicable, to incorporate relevant data, views, or arguments about unsafe conditions identified as a result
the latest revision of the AWLs. We are this proposal. Send your comments to of these reviews.
proposing this AD to address the unsafe an address listed under the ADDRESSES In evaluating these design reviews, we
condition on these products. section. Include ‘‘Docket No. FAA– have established four criteria intended

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Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule.
Dates		Written comments and opinions on this proposed rule will be accepted until close of business April 9, 2018 and will be considered when the rule is made final.
Contact		David L. Miller, Director, Reinsurance Services Division, Federal Crop Insurance Corporation, United States Department of Agriculture (USDA), 1400 Independence Avenue SW, Stop 0801, Washington, DC 20250, telephone (202) 720-9830.
FR Citation		83 FR 5573
RIN Number		0563-AC54
CFR Associated		Administrative Practice and Procedure; Crop Insurance and Reporting and Recordkeeping Requirements
83 FR 5573 - General Administrative Regulations; Subpart L-Reinsurance Agreement-Standards for Approval; Regulations for the 2019 and Subsequent Reinsurance Years

DEPARTMENT OF AGRICULTUREFederal Crop Insurance Corporation

Federal Register Volume 83, Issue 27 (February 8, 2018)

DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
