[Federal Register Volume 62, Number 101 (Tuesday, May 27, 1997)]
[Rules and Regulations]
[Pages 28607-28609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13498]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
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Federal Register / Vol. 62, No. 101 / Tuesday, May 27, 1997 / Rules
and Regulations
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 400
RIN 0563-AB26
General Administrative Regulations; Collection and Storage of
Social Security Account Numbers and Employer Identification Numbers
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The regulations contained in this subpart are issued pursuant
to the Federal Crop Insurance Act, as amended (FCIA) (7 U.S.C. 1501 et
seq.). The intended effect of this revision is to comply with the
statutory mandate that requires the collection of Social Security
Number (SSN) and Employer Identification Number (EIN) information of
participating agents, loss adjusters, and policyholders and to
establish the procedures to be used by the Federal Crop Insurance
Corporation (FCIC) and insurance providers in the collection, use, and
storage of documents containing SSN or EIN information.
EFFECTIVE DATE: June 26, 1997.
FOR FURTHER INFORMATION CONTACT: Bill Smith, Supervisory Insurance
Management Specialist, Research and Development, Product Development
Division, Federal Crop Insurance Corporation, United States Department
of Agriculture, 9435 Holmes Road, Kansas City, Mo 64131, telephone
(816) 926-7743.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has determined this rule
to be not significant for the purpose of Executive Order 12866, and,
therefore, has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Following publication of the proposed rule, the public was afforded
60 days to submit written comments and opinions on information
collection requirements previously approved by OMB under OMB control
number 0563-0047, through November 30, 1999. No public comments were
received.
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
mandate (under the regulatory provisions of Title II of the UMRA) for
State, local, and tribal governments or the private sector. Thus, this
rule is not subject to the requirements of sections 202 and 205 of the
UMRA.
Executive Order 12612
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.
Regulatory Flexibility Act
This regulation will not have a significant impact on a substantial
number of small entities. New provisions in the rule will not impact
small entities to a greater extent than larger entities. The action
does not increase the paperwork burden on the insured producer or the
reinsured company. The program is strictly voluntary. This regulation
requires only that the participant provide the SSN or EIN. This
regulation does not require or impose any requirement on the delivery
agent or company that is not already required by the Privacy Act of
1974 (5 U.S.C. 552a). Therefore, this action is determined to be exempt
from the provisions of the Regulatory Flexibility Act (5 U.S.C. 605),
and no Regulatory Flexibility Analysis was prepared.
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 prior to the effective date. 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 published at 7 CFR part 11 must be exhausted before any
action for judicial review may be brought.
Environmental Evaluation
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.
National Performance Review
This regulatory action is being taken as part of the National
Performance Review Program to eliminate unnecessary regulations or
duplicative regulations and improve those that remain in force.
Background
On Wednesday, January 15, 1997, FCIC published a proposed rule in
the Federal Register at 62 FR 2052-2055 to amend the General
Administrative Regulations (7 CFR part 400, subpart Q). Following
publication of that proposed rule, the public was afforded 60 days to
submit written comments and opinions. No public comments were received.
In addition to the proposed changes, FCIC is making the following
changes to this subpart:
1. Section 400.405 (b) and (c) are being amended to clarify that it
is the agent or loss adjuster's SSN which must be provided. The meaning
of ``premium
[[Page 28608]]
subsidy payable'' in paragraph (c) is also being clarified.
List of Subjects in 7 CFR part 400
Collection and storage of social security account numbers and
employer identification numbers, Crop insurance, General administrative
regulations.
Final Rule
Accordingly, for the reasons set forth in the preamble, the Federal
Crop Insurance Corporation hereby amends 7 CFR part 400, subpart Q as
follows:
PART 400--GENERAL ADMINISTRATIVE REGULATIONS
Subpart Q--Collection and Storage of Social Security Account
Numbers and Employer Identification Numbers
1. The authority citation for 7 CFR part 400, subpart Q, is revised
to read as follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
2. Section 400.401 is amended by revising paragraphs (a), (b)(1),
(2), (3) and (4) to read as follows:
Sec. 400.401 Basis and purpose and applicability.
(a) The regulations contained in this subpart are issued pursuant
to the Act to prescribe procedures for the collection, use, and
confidentiality of Social Security Numbers (SSN) and Employer
Identification Numbers (EIN) and related records.
(b) * * *
(1) All holders of crop insurance policies issued by FCIC under the
Act and sold and serviced by local FSA offices.
(2) All holders of crop insurance policies sold by insurance
providers and all insurance providers, their contractors and
subcontractors, including past and present officers and employees of
such companies, their contractors and subcontractors.
(3) Any agent, general agent, or company, or any past or present
officer, employee, contractor or subcontractor of such agent, general
agent, or company under contract to FCIC or an insurance provider for
loss adjustment or any other purpose related to the crop insurance
programs insured or reinsured by FCIC; and
(4) All past and present officers, employees, elected officials,
contractors, and subcontractors of FCIC and FSA.
3. Section 400.402, is revised to read as follows:
Sec. 400.402 Definitions.
Act--The Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et
seq.).
Applicant--A person who has submitted an application for crop
insurance coverage under the Act.
Authorized person--Any current or past officer, employee, elected
official, general agent, contractor, or loss adjuster of FCIC, the
insurance provider, or any other government agency whose duties require
access to administer the Act.
Disposition of records--The act of removing and disposing of
records containing a participant's SSN or EIN by FCIC, or the insurance
provider.
FCIC--The Federal Crop Insurance Corporation of the United States
Department of Agriculture or any successor agency.
FSA--The Farm Service Agency of the United States Department of
Agriculture, or a successor agency.
Insurance provider--A private insurance company approved by FCIC,
or a local FSA office providing crop insurance coverage to producers
participating in any program administered under the Act.
Past officers and employees--Any officer or employee of FCIC or the
insurance provider who leaves the employ of FCIC or the insurance
provider subsequent to the effective date of this rule.
Person--An individual, partnership, association, corporation,
estate, trust, or other legal entity, and whenever applicable, a state,
political subdivision, or an agency of a state.
Policyholder--An applicant whose application for insurance under
the crop insurance program has been accepted by FCIC or the insurance
provider.
Retrieval of records--Retrieval of a person's records by that
person's SSN or EIN, or name.
Safeguards--Methods of security to be employed by FCIC or the
insurance provider to protect a participant's SSN or EIN from unlawful
disclosure and access.
Storage--The secured storing of records kept by FCIC or the
insurance provider on computer disks or drives, computer printouts,
magnetic tape, index cards, microfiche, microfilm, etc.
Substantial beneficial interest--Any person having an interest of
at least 10 percent in the applicant or policyholder.
System of records--Records established and maintained by FCIC or
the insurance provider containing SSN or EIN data, name, address, city
and State, applicable policy numbers, and other information related to
multiple peril crop insurance policies as required by FCIC, from which
information is retrieved by a personal identifier including, but not
limited to the SSN, EIN, or name.
4. Section 400.403 is revised to read as follows:
Sec. 400.403 Required system of records.
Insurance providers are required to implement a system of records
for obtaining, using, and storing documents containing SSN or EIN data
before they accept or receive any applications for insurance. This data
should include: name; address; city and state; SSN or EIN; and policy
numbers which have been used by FCIC or the insurance provider.
5. Section 400.404 is revised to read as follows:
Sec. 400.404 Policyholder responsibilities.
(a) The policyholder or applicant for crop insurance must provide a
correct SSN or EIN to FCIC or the insurance provider to be eligible for
insurance. The SSN or EIN will be used by FCIC and the insurance
provider in:
(1) Determining the correct parties to the agreement or contract;
(2) Collecting premiums or other amounts due FCIC or the insurance
provider;
(3) Determining the amount of indemnities;
(4) Establishing actuarial data on an individual policyholder
basis; and
(5) Determining eligibility for crop insurance program
participation or other United States Department of Agriculture
benefits.
(b) If the policyholder or applicant for crop insurance does not
provide the correct SSN or EIN on the application and other forms where
such SSN or EIN is required, FCIC or the reinsured company shall reject
the application.
(c) The policyholder or applicant is required to provide to FCIC or
the insurance provider, the name and SSN or EIN of any individual or
other entity:
(1) holding or acquiring a substantial beneficial interest in such
policyholder or applicant; or
(2) having any interest in the policyholder or applicant and
receiving separate benefits under another United States Department of
Agriculture program as a direct result of such interest.
(d) If a policyholder or applicant is using an EIN for a policy in
an individual person's name, the SSN of the policyholder or applicant
must also be provided.
Secs. 400.405 through 400.412 [Redesignated as Secs. 400.406 through
Secs. 400.413].
6. Sections 400.405 through 400.412 are redesignated as sections
400.406 through 400.413, respectively.
Sections 400.405 through 400.412 are redesignated as follows:
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Old section New section
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400.405................................ 400.406
400.406................................ 400.407
400.407................................ 400.408
400.408................................ 400.409
400.409................................ 400.410
400.410................................ 400.411
400.411................................ 400.412
400.412................................ 400.413
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7. Section 400.405 is added to read as follows:
Sec. 400.405 Agent and loss adjuster responsibilities.
(a) The agent or loss adjuster shall provide his or her correct SSN
to FCIC or the insurance provider, whichever is applicable, to be
eligible to participate in the crop insurance program. The SSN will be
used by FCIC and the insurance provider in establishing a database for
the purposes of:
(1) Identifying agents and loss adjusters on an individual basis;
(2) Evaluating agents and loss adjusters to determine level of
performance;
(3) Determining eligibility for program participation; and
(4) Collection of any amount which may be owed by the agent and
loss adjuster to the United States.
(b) If the loss adjuster contracting with FCIC to participate in
the crop insurance program does not provide his or her correct SSN on
forms or contracts where such SSN is required, the loss adjuster's
contract will be cancelled effective on the date of refusal and the
loss adjuster will be subject to suspension and debarment in accordance
with the suspension and debarment regulations of the United States
Department of Agriculture.
(c) If the agent or loss adjuster contracting with an insurance
provider, who is also a private insurance company, to participate in
the crop insurance program does not provide his or her correct SSN on
forms or contracts where such SSN is required, the premium subsidy
payable for administrative and operating expenses under the Standard
Reinsurance Agreement, or any other reinsurance agreement, will not be
paid on those policies lacking the correct SSN.
8. Redesignated Sec. 400.406 is revised to read as follows:
Sec. 400.406 Insurance provider responsibilities.
The insurance provider is required to collect and record the SSN or
EIN on each application or on any other form required by FCIC.
9. Redesignated Sec. 400.407 is revised to read as follows:
Sec. 400.407 Restricted access.
The Manager, other officer, or employee of FCIC or an authorized
person may have access to the SSNs and EINs obtained pursuant to this
subpart, only for the purpose of establishing and maintaining a system
of records necessary for the effective administration of the Act.
10. Redesignated Sec. 400.408 is revised to read as follows:
Sec. 400.408 Safeguards and storage.
Records must be maintained in secured storage with proper
safeguards sufficient to enforce the restricted access provisions of
this subpart.
11. Redesignated Sec. 400.411 is amended by revising the
introductory text and paragraph (a) to read as follows:
Sec. 400.411 Obtaining personal records.
Policyholders, agents, and loss adjusters in the crop insurance
program will be able to review and correct their records as provided by
the Privacy Act. Records may be requested by:
(a) Mailing a signed written request to the headquarters office of
FCIC; the FCIC Regional Service Office, or the insurance provider; or
* * * * *
12. Redesignated Sec. 400.412 is revised to read as follows:
Sec. 400.412 Record retention.
(a) FCIC or the insurance provider will retain all records of
policyholders for a period of not less than 3 years from the date of
final action on a policy for the crop year, unless further maintenance
of specific records is requested by FCIC. Final actions on insurance
policies include conclusion of insurance events, such as the latest of
termination of the policy, completion of loss adjustment, or
satisfaction of claim.
(b) The statute of limitations for FCIC contract claims may permit
litigation to be instituted after the period of record retention.
Destruction of records prior to the expiration of the statute of
limitations will not provide a defense to any action by FCIC against
any private insurance company.
13. Redesignated Sec. 400.413 is revised to read as follows:
Sec. 400.413 OMB control numbers.
The collecting of information requirements in this subpart has been
approved by the Office of Management and Budget and assigned OMB
control number 0563-0047.
Signed in Washington, D.C., May 16, 1997.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 97-13498 Filed 5-23-97; 8:45 am]
BILLING CODE 3410-08-P
