[Federal Register Volume 60, Number 83 (Monday, May 1, 1995)]
[Rules and Regulations]
[Pages 21035-21036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10466]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 400
General Administrative Regulations; Reinsurance Agreement--
Standards for Approval
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Interim rule.
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SUMMARY: The Federal Crop Insurance Corporation (``FCIC'') hereby
amends its General Administrative Regulations, 7 CFR part 400, by
revising the Disputes clause, located at section 400.169. The intended
effect of this rule is to provide reinsured companies with an informal
reconsideration process through an administrative officer of FCIC and
the right to appeal the administrative officer's administrative
determination to the Board of Contract Appeals.
DATES: This rule is effective May 1, 1995. Written comments, data, and
opinions on this rule will be accepted until close of business June 30,
1995 and will be considered when the rule is to be made final.
ADDRESSES: Written comments, data, and opinion on this interim rule
should be sent to Diana Moslak, Regulatory and Procedural Development
Staff, Federal Crop Insurance Corporation, USDA, Washington, D.C.
20250. Hand or messenger delivery should be made to Suite 500, 2101 L
Street, N.W., Washington, D.C. Written comments will be available for
public inspection and copying in the Office of the Manager, 2101 L
Street, N.W., 5th Floor, Washington, D.C., during regular business
hours, Monday through Friday.
FOR FURTHER INFORMATION CONTACT: Federal Crop Insurance Corporation,
U.S. Department of Agriculture, Washington, D.C. 20250. Telephone (202)
254-8314.
SUPPLEMENTARY INFORMATION: As a result of the Departmental
reorganization mandated by the Department of Agriculture Reorganization
Act of 1994, FCIC must amend its dispute provisions to provide
reinsured companies with a mechanism to request reconsideration or
appeal of adverse decisions determined by FCIC.
This action has been reviewed under United States Department of
Agriculture (``USDA'') procedures established by Executive Order 12866
and Departmental Regulation 1512-1. This action constitutes a review as
to the need, currency, clarity, and effectiveness of these regulations
under those procedures. The sunset review date established for these
regulations is March 31, 1999.
This rule has been determined to be ``not significant'' for the
purposes of Executive Order 12866, and therefore, has not been reviewed
by the Office of Management and Budget (``OMB'').
This rule does not contain information collection requirements that
require approval by OMB under the Paperwork Reduction Act of 1980 (44
U.S.C. 3501 et seq.).
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment. The
policies and procedures contained in this rule will not have a
substantial direct effect on states or their political subdivisions, or
on the distribution of power and responsibilities among the various
levels of government.
Under the Regulatory Flexibility Act (5 U.S.C. 605), this
regulation will not have a significant impact on a substantial number
of small entities. This action does not increase the paperwork burden
on the reinsured company because this action only changes the mechanism
in which to submit disputed reinsurance issues. Therefore, this action
is determined to be exempt from the provisions of the Regulatory
Flexibility Act and no Regulatory Flexibility Analysis was prepared.
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
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.
The Office of the General Counsel has determined that these
regulations meet the applicable standards provided in subsections
(2)(a) and 2(b)(2) of Executive Order 12778. The provisions of this
rule will preempt state and local laws to the extent such state and
local laws are inconsistent herewith. The administrative appeal
provisions located at 7 CFR part 400, subpart J and the appeal
provisions promulgated by the Board of Contract Appeals, 7 CFR part 24,
subtitle A, must be exhausted before judicial action may be brought.
This action is not expected to have any significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
This interim rule provides a new avenue of appeal for reinsured
companies now that FCIC no longer has hearing officers to conduct these
appeals. At present, there is no body authorized to hear these appeals.
Therefore, it is impractical and contrary to the public interest to
publish this rule for notice and comment prior to making the rule
effective. However, comments are solicited for 60 days after the date
of publication in the Federal Register and will be considered by FCIC
before this rule is made final.
Background
Prior to enactment of the Department of Agriculture Reorganization
Act of 1994, reinsured companies were afforded the opportunity for an
informal hearing to appeal final determinations made by FCIC. The
authority to hear these appeals was delegated to FCIC hearing officers.
If the reinsured company was dissatisfied with the determination of the
hearing officer, its only recourse was to the courts. Since the
Standard Reinsurance Agreement is not a program agreement but instead
an agreement for delivery of the program, it is an action to be handled
by the [[Page 21036]] Agency Board of Contract Appeals rather than a
program matter within the jurisdiction of the National Appeals
Division. If the reinsured company is now dissatisfied with a
determination under a reinsurance agreement with FCIC it may now
request the Director of Insurance Services to render a final
administrative determination on the dispute. If the reinsured company
is dissatisfied with a determination as a result of a compliance review
finding, it may request the Director of Compliance to render a final
administrative determination on the dispute. Such final administrative
determination by the Director of Insurance Services or Director of
Compliance will be appealable to the United States Department of
Agriculture Board of Contract Appeals.
List of Subjects in 7 CFR Part 400
Crop insurance.
Final Rule
Pursuant to the authority contained in the Federal Crop Insurance
Act, as amended (7 U.S.C. 1501 et seq.), the Federal Crop Insurance
Corporation hereby amends 7 CFR part 400, subpart L to read as follows:
PART 400--[AMENDED]
1. The authority citation for 7 CFR part 400, subpart L, is revised
to read as follows:
Authority: 7 U.S.C. 1506(l).
2. Section 400.169 is revised to read as follows:
Sec. 400.169 Disputes.
(a) If the company believes that the Corporation has taken an
action that is not in accordance with the provisions of the Standard
Reinsurance Agreement or any reinsurance agreement with FCIC, except
compliance issues, it may within 45 days after receipt of such
determination, request, in writing, the Director of Insurance Services
to make a final administrative determination addressing the disputed
issue. The Director of Insurance Services will render the final
administrative determination of the Corporation with respect to the
applicable issues.
(b) If the company believes that the Corporation's compliance
review findings are not in accordance with the applicable laws,
regulations, custom or practice of the insurance industry, or FCIC
approved policy and procedure, it may within 45 days after receipt of
such determination, request, in writing, the Director of Compliance to
make a final administrative determination addressing the disputed
issue. The Director of Compliance will render the final administrative
determination of the Corporation with respect to these issues.
(c) A company may also request reconsideration by the Director of
Insurance Services of a decision of the Corporation rendered under any
Corporation bulletin or directive which bulletin or directive does not
affect, interpret, explain, or restrict the terms of the reinsurance
agreement. The company, if it disputes the Corporation's determination,
must request a reconsideraiton of that determination in writing, within
45 days of the receipt of the determination. The determinations of the
Director 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
Corporation under Sec. 400.169 (a) or (b) may be appealed to the Board
of Contract Appeals in accordance with the provisions of part 24 of
title 7, subtitle A, of the Code of Federal Regulations, 7 CFR part 24.
Done in Washington, D.C., on April 20, 1995.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 95-10466 Filed 4-28-95; 8:45 am]
BILLING CODE 3410-08-P
