Treasury's Annual Letter to Pools and Associations
OMB No. 1510-0008
July 9, 2013
To Executive Officers of Pools and Associations Recognized by The U.S. Department of The Treasury:
The Treasury Department annually examines the December 31, financial statements of surety companies holding Certificates of Authority from the Treasury. As a result of this examination, an underwriting limitation is established for each company, based on the reported Policyholders' Surplus.
When establishing a company's underwriting limitation, adjustments may be made to its surplus based on reinsurance (as reported on Schedule F) that has been placed with companies, pools and associations not recognized by Treasury. This disallowance applies even if the reinsurance does not cover surety bonds and regardless of whether the United States is involved.
The Treasury recognizes pools and associations as Admitted Reinsurers to the extent of the percentage of participation by Treasury authorized companies in each association.
In the past, some companies holding a Certificate of Authority have reported reinsurance ceded to your association in the Schedule F of their financial statement.
In order for these companies to continue to receive credit for such reinsurance, the Treasury needs the names of the member companies of your association and their percentage of participation. Please use the attached form to report participants and their percentages. Information in any other format may not be accepted by this office. This enclosure is also available for downloading from our internet address listed below. For future mailings, you can provide us with your company name and email address by sending it to Surety.Bonds@fms.treas.gov. Please state on the Subject line. “Pools and Associations”.
If you wish Treasury recognition of your pool or association to continue, please indicate on the attached, the respective company's percentage of participation as a member of your pool or association and return to this office, by August 15, 2013. Also independent loss reserve certifications should be provided as soon as they are available for 2012 reporting purposes. The enclosed should be completed and returned to the following address or faxed to (202) 874-9978.
U. S. Department of the Treasury
If you do not wish Treasury recognition of your pool or association to continue, please contact Pratibha Goel at (202) 874-7102. The list of recognized Pools and Associations will be published as of September 30, 2013. It is, therefore, essential that the requested information be submitted on time.
Paperwork Reduction Act and Privacy Act Statement
By authority of 31 USC 9304-9308, and 31 CFR Part 223, the information requested in this letter is required to retain or obtain a benefit and to enable the Assistant Commissioner, Management, Bureau of the Fiscal Service, Department of the Treasury, to determine if your Pool or Association desires to be recognized or continue its recognition as an acceptable reinsurer on non-Federal bonds. Pools and Associations are requested to file this information with the Treasury Department annually. Failure to provide this information will cause non-recognition by Treasury of the Pool or Association
Burden Estimate Statement
The estimated average time (burden hours) associated with filling out this paper work is 1 hour 30 minutes per respondent or record keeper, depending on individual circumstances. Comments concerning the accuracy of this time estimate and suggestions for reducing the burden associated with the time spent collecting this information should be directed to the Bureau of the Fiscal Service, Facilities Management Division, Property & Supply Section, 3361-L 75th Avenue, Landover, MD 20785 and the Office of Management and Budget, Paperwork Reduction Project (1510-0008), Washington, DC 20503. This Address Should Only Be Used For Comments And/Or Suggestions Concerning This Form. Do Not Send The Completed Paperwork To The Address Above For Processing.