[Federal Register Volume 83, Number 52 (Friday, March 16, 2018)]
[Notices]
[Pages 11772-11778]
[FR Doc No: 2018-05418]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2018-0019]

National Flood Insurance Program (NFIP); Assistance to Private
Sector Property Insurers, Notice of FY 2019 Arrangement

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: The Federal Emergency Management Agency announces the Fiscal
Year 2019 Financial Assistance/Subsidy Arrangement for private property
insurers interested in participating in the National Flood Insurance
Program's Write Your Own Program.

DATES: Interested insurers must submit intent to subscribe or re-
subscribe to the Arrangement by June 14, 2018.

FOR FURTHER INFORMATION CONTACT: Kelly Bronowicz, Federal Insurance and
Mitigation Administration, FEMA, 400 C St. SW, Washington, DC 20472;
(202) 557-9488 (phone), or [email protected] (email).

SUPPLEMENTARY INFORMATION:

I. Background

    The National Flood Insurance Act of 1968 (NFIA), as amended (42
U.S.C. 4001 et seq.), authorizes the Administrator of the Federal
Emergency Management Agency (FEMA) to establish and carry out a
National Flood Insurance Program (NFIP) to enable interested persons to
purchase insurance against loss resulting from physical damage to or
loss of real or personal property arising from flood in the United
States. See 42 U.S.C. 4011(a). Under the NFIA, FEMA has the authority
to undertake arrangements to carry out the NFIP through the facilities
of the Federal Government, utilizing, for the purposes of providing
flood insurance coverage, insurance companies and other insurers,
insurance agents and brokers, and insurance adjustment organizations,
as fiscal agents of the United States. See 42 U.S.C. 4071. To this end,
FEMA may ``enter into any contracts, agreements, or other
arrangements'' with private insurance companies to utilize their
facilities and services in administering the NFIP, and on such terms
and conditions as may be agreed upon. See 42 U.S.C. 4081(a).
    Pursuant to this authority, FEMA enters into a standard Financial
Assistance/Subsidy Arrangement (Arrangement) with private sector
property insurers, also known as Write Your Own (WYO) companies, to
sell NFIP flood insurance policies under their own names and adjust and
pay claims arising under the Standard Flood Insurance Policy (SFIP).
Each Arrangement entered into by a WYO company must be in the form and
substance of the standard Arrangement, a copy of which is published in
the Federal Register annually, at least 6 months prior to becoming
effective. See 44 CFR 62.23(a).

II. Notice of Availability

    Insurers interested in participating in the WYO Program for Fiscal
Year 2019 must contact Clark Poland at

[email protected] by June 14, 2018.
    Prior participation in the WYO Program does not guarantee that FEMA
will approve continued participation. FEMA will evaluate requests to
participate in light of publicly available information, industry
performance data, and other criteria listed in 44 CFR 62.24 and the FY
2019 Arrangement, copied below. Private insurance companies are
encouraged to supplement this information with customer satisfaction
surveys, industry awards or recognition, or other objective performance
data. In addition, private insurance companies should work with their
vendors and subcontractors involved in servicing and delivering their
insurance lines to ensure FEMA receives the information necessary to
effectively evaluate the criteria set forth in its regulations.
    FEMA will send a copy of the offer for the FY 2019 Arrangement,
together with related materials and submission instructions, to all
private insurance companies successfully evaluated by the NFIP. If
FEMA, after conducting its evaluation, chooses not to renew a Company's
participation, FEMA, at its option, may require the continued
performance of all or selected elements of the FY 2018 Arrangement for
a period required for orderly transfer or cessation of the business and
settlement of accounts, not to exceed 18 months. See FY 2018
Arrangement, Article V.C. All evaluations, whether successful or
unsuccessful, will inform both an overall assessment of the WYO Program
and any potential changes FEMA may consider regarding the Arrangement
in future fiscal years.
    Any private insurance company with questions may contact FEMA at:
Kelly Bronowicz, Federal Insurance and Mitigation Administration, FEMA,
400 C St. SW, Washington, DC 20472 (mail);<PHONE_NUMBER> (phone), or
[email protected] (email).

III. Fiscal Year 2019 Arrangement

    Pursuant to 44 CFR 62.23(a), FEMA must publish the Arrangement at
least 6 months prior to the Arrangement becoming effective. The FY 2019
Arrangement copied below is substantially similar to the previous
year's Arrangement. FEMA has made several changes designed to improve
the overall clarity and readability of the document, as well as
incorporate existing WYO Program policies and requirements. Noteworthy
changes include:
     Establishing timeliness requirements for the claim appeals
process;
     Requiring WYO companies to submit an Operations Plan to
FEMA.
     Removing the provision increasing the WYO Allowance by 1
percent of written premium over the rate indicated by expense data from
non-flood insurance lines.
     Removing the cap on the maximum potential growth bonus
paid to an individual WYO company, while limiting the total growth
bonuses paid to all WYO companies at 2 percent of aggregate written
premium.
     Formalizing FEMA's process to temporarily increase the
allocated loss adjustment fee schedule when necessary to ensure supply
of qualified adjusters during a catastrophic flood event.
     Removing restrictions on WYO companies choosing to offer
private flood insurance, while maintaining requirements that such
private flood insurance lines remain entirely separate from a WYO
company's NFIP insurance business.
     Several stylistic changes designed to improve overall
clarity and readability in accordance with Federal Plain Language
Guidelines.
    The Fiscal Year 2019 Arrangement reads as follows:

Financial Assistance/Subsidy Arrangement

Article I. Findings, Purposes, and Authority

    Whereas, the Congress in its ``Finding and Declaration of Purpose''
in the National Flood Insurance Act of 1968, Public Law 90-448, Title
XIII, as amended, (``the Act'' or ``Act'') recognized the benefit of
having the National Flood Insurance Program (the ``Program'' or
``NFIP'') ``carried out to the maximum extent practicable by the
private insurance industry''; and
    Whereas, the Federal Emergency Management Agency (``FEMA''), which
operates the Program through its Federal Insurance and Mitigation
Administration (``FIMA''), recognizes this Arrangement as coming under
the provisions of Sections 1340 and 1345 of the Act (42 U.S.C. 4071 and
4081, respectively); and
    Whereas, the goal of FEMA is to develop a program with the
insurance industry where the risk-bearing role for the industry will
evolve as intended by the Congress (Section 1304 of the Act [42 U.S.C.
4011]); and
    Whereas, Section 205 of the Bunning-Bereuter-Blumenauer Flood
Insurance Reform Act of 2004, Public Law 108-264, as implemented by 44
CFR 62.20, permits Program policyholders to appeal the denial of a
claim, in completely or in part, to FEMA; and
    Whereas, the NFIP is a program administered by FEMA, all
participants of this Arrangement, and other entities operating on their
behalf, shall align themselves toward the common purpose of helping
survivors and their communities recover from floods by effectively
delivering customer-focused flood insurance products and information;
and
    Whereas, the insurer (hereinafter the ``Company'') under this
Arrangement must charge rates established by FEMA; and
    Whereas, FEMA has promulgated regulations and guidance implementing
the Act and the Write Your Own (WYO) Program whereby participating
private insurance companies act in a fiduciary capacity utilizing
Federal funds to sell and administer the Standard Flood Insurance
Policies, and has extensively regulated the participating companies'
activities when selling or administering the Standard Flood Insurance
Policies; and
    Whereas, any litigation resulting from, related to, or arising from
the Company's compliance with the written standards, procedures, and
guidance issued by FEMA arises under the Act or regulations, and legal
issues thereunder raise a federal question; and
    Whereas, through this Arrangement, the Federal Treasury will back
all flood policy claim payments by the Company; and
    Whereas, FEMA developed this Arrangement to enable any interested
qualified insurer to write flood insurance under its own name; and
    Whereas, insured survivors recover faster and more fully than
uninsusred survivors, and FEMA is committed to developing a culture of
preparedness and closing the insurance gap across the nation; and
    Whereas, one of the primary objectives of the Program is to provide
coverage to the maximum number of buildings at risk and because the
insurance industry has marketing access through its existing facilities
not directly available to FEMA, FEMA concludes that coverage will be
extended to those who would not otherwise be insured under the Program;
andWhereas, flood insurance policies issued subject to this Arrangement
must be only that insurance written by the Company in its own name
under prescribed policy conditions and pursuant to this Arrangement,
the Act, and any guidance issued by FEMA; and
    Whereas, over time, the Program is designed to increase industry
participation, and, accordingly, reduce or eliminate Government as the

principal vehicle for delivering flood insurance to the public; and
    Whereas, the sole parties under this Arrangement are the Company
and FEMA.
    Now, therefore, the parties hereto mutually undertake the
following:

Article II. Undertakings of the Company

    A. Eligibility Requirements for Participation in the NFIP.
    1. Policy Administration. All fund receipt, recording, control,
timely deposit requirements, and disbursement in connection with all
Policy Administration and any other related activities or
correspondences, must meet all requirements of the Financial Control
Plan and any guidance issued by FEMA. The Company shall be responsible
for:
    a. Compliance with the Community Eligibility/Rating Criteria.
    b. Making Policyholder Eligibility Determinations.
    c. Policy Issuances.
    d. Policy Endorsements.
    e. Policy Cancellations.
    f. Policy Correspondence.
    g. Payment of Agents' Commissions.
    2. Claims Processing. The Company must process all claims
consistent with the Standard Flood Insurance Policy, Financial Control
Plan, other guidance adopted by FEMA, and as much as possible, with the
Company's standard business practices for its non-NFIP policies.
    3. Reports. The Company must submit monthly financial reports and
statistical transaction reports in accordance with the requirements of
the NFIP Transaction Record Reporting and Processing Plan for the
Company and the Financial Control Plan for business written under the
WYO Program, as well as with WYO Accounting Procedures. FEMA will
validate, edit, and audit in detail these data and compare and balance
the results against Company reports.
    4. Operations Plan. Within ninety (90) days of the commencement of
this Arrangement, the Company must submit an Operations Plan to FEMA
describing its efforts to perform under this Arrangement. The plan must
include the following:
    a. A marketing plan describing the Company's forecasted growth,
efforts to achieve that growth, and ability to comply with any
marketing guidelines provided by FEMA.
    b. A description of the Company's NFIP flood insurance distribution
network, including anticipated numbers of agents, efforts to train
those agents, and an average rate of commissions paid to producers by
state.
    c. A catastrophic claims handling plan describing how the Company
will respond and maintain service standards in catastrophic flood
events.
    d. A business continuity plan identifying threats and risks facing
the Company's NFIP-related operations and how the Company will maintain
operations in the event of a disaster affecting its operational
capabilities.
    B. Time Standards. Time will be measured from the date of receipt
through the date mailed out. All dates referenced are working days, not
calendar days. In addition to the standards set forth below, all
functions performed by the Company must be in accordance with the
highest reasonably attainable quality standards generally utilized in
the insurance and data processing field. Continual failure to meet
these requirements may result in limitations on the company's authority
to write new business or the removal of the Company from the WYO
Program. Applicable time standards are:
    1. Application Processing--15 days (Note: if the policy cannot be
mailed due to insufficient or erroneous information or insufficient
funds, the Company must mail a request for correction or added moneys
within 10 days).
    2. Renewal processing--7 days.
    3. Endorsement processing--15 days.
    4. Cancellation processing--15 days.
    5. Claims Draft Processing--7 days from completion of file
examination.
    6. Claims Adjustment--45 days average from the receipt of Notice of
Loss (or equivalent) through completion of examination.
    C. Policy Issuance.
    1. The flood insurance subject to this Arrangement must be only
that insurance written by the Company in its own name pursuant to the
Act.
    2. The Company must issue policies under the regulations prescribed
by the Federal Emergency Management Agency, in accordance with the Act,
on a form approved by FEMA.
    3. All policies must be issued in consideration of such premiums
and upon such terms and conditions and in such states or areas or
subdivisions thereof as may be designated by FEMA and only where the
Company is licensed by State law to engage in the property insurance
business.
    D. FEMA may require the Company to discontinue issuing policies
subject to this Arrangement immediately in the event Congressional
authorization or appropriation for the NFIP is withdrawn.
    E. The Company must separate federal flood insurance funds from all
other Company accounts, at a bank or banks of its choosing for the
collection, retention and disbursement of federal funds relating to its
obligation under this Arrangement, less the Company's expenses as set
forth in Article III, and the operation of the Letter of Credit
established pursuant to Article IV. The Company must remit all funds
not required to meet current expenditures to the United States
Treasury, in accordance with the provisions of the WYO Accounting
Procedures Manual.
    F. The Company must investigate, adjust, settle, and defend all
claims or losses arising from policies issued under this Arrangement.
Payment of flood insurance claims by the Company bind FEMA, subject to
appeal.
    G. Compliance with Agency Standards and Guidelines.
    1. The Company must comply with the Act, regulations, written
standards, procedures, and guidance issued by FEMA relating to the NFIP
and applicable to the Company, including, but not limited to:
    a. Financial Control Plan.
    b. Transaction Record Reporting and Processing (TRRP) Plan.
    c. Flood Insurance Manual.
    d. Adjuster Claims Manual.
    e. WYO Bulletins.
    2. The Company must market flood insurance policies in a manner
consistent with marketing guidelines established by FEMA.
    3. FEMA may require the Company to collect customer service
information to monitor and improve their program delivery.
    4. The Company must notify its agents of the requirement to comply
with State regulations regarding flood insurance agent education,
notify agents of flood insurance training opportunities, and assist
FEMA in periodic assessment of agent training needs.
    H. Compliance with Appeals Process.
    1. FEMA will notify the Company when a policyholder files an
appeal. After notification, the Company must provide FEMA the following
information:
    a. All records created or maintained pursuant to this Arrangement
requested by FEMA; and
    b. A comprehensive claim file synopsis that includes a summary of
the appeal issues, the Company's position on each issue, and any
additional relevant information. If, in the process of writing the
synopsis, the Company determines that it can address the issue raised
by the policyholder on appeal without further direction, it must notify
FEMA. The Company will then work directly with the policyholder to
achieve resolution and update FEMA upon completion. The Company may

have a claims examiner review the file who is independent from the
original decision and who possesses the authority to overturn the
original decision if the facts support it.
    2. The Company must cooperate with FEMA throughout the appeal
process until final resolution. This includes adhering to any written
appeals guidance issued by FEMA.
    3. Resolution of Appeals. FEMA will close an appeal when:
    a. FEMA upholds the denial by the Company;
    b. FEMA overturns the denial by the Company and all necessary
actions that follow are completed;
    c. The Company independently resolves the issue raised by the
policyholder without further direction;
    d. The policyholder voluntarily withdraws the appeal; or
    e. The policyholder files litigation.
    4. Processing of Additional Payments from Appeal. The Company must
follow supplemental claim procedures for appeals that result in
additional payment to a policyholder.
    5. Time Standards.
    a. Provide FEMA with requested files pursuant to Article II.H.1.a--
10 business days after request.
    b. Provide FEMA with comprehensive claim file synopsis pursuant to
Article II.H.1.b--10 business days after request.
    c. Responding to inquiries from FEMA regarding an appeal--10
business days after inquiry.
    I. Other Flood Insurance. If the Company also offers flood
insurance outside of the NFIP in any geographic area in which Program
authorizes the purchase of flood insurance, the Company must:
    1. Ensure that all public communications (whether written,
recorded, electronic, or other) regarding non-NFIP flood insurance
lines would not lead a reasonable person to believe that the NFIP,
FEMA, or the Federal Government in any way endorses, sponsors,
oversees, regulates, or otherwise has any connection with the non-NFIP
flood insurance line. The Company may assure compliance with this
requirement by prominently including in such communications the
following statement: ``This insurance product is not affiliated with
the National Flood Insurance Program.''
    2. Ensure that data related to this Arrangement are not used to
further or support the Company's non-NFIP flood insurance lines.

Article III. Loss Costs, Expenses, Expense Reimbursement, and Premium
Refunds

    A. The Company is liable for operating, administrative and
production expenses, including any State premium taxes, dividends,
agents' commissions or any other expense of whatever nature incurred by
the Company in the performance of its obligations under this
Arrangement but excluding other taxes or fees, such as municipal or
county premium taxes, surcharges on flood insurance premium, and
guaranty fund assessments.
    B. Payment for Selling and Servicing Policies.
    1. Operating and Administrative Expenses. The Company may withhold,
as operating and administrative expenses, other than agents' or
brokers' commissions, an amount from the Company's written premium on
the policies covered by this Arrangement in reimbursement of all of the
Company's marketing, operating, and administrative expenses, except for
allocated and unallocated loss adjustment expenses described in Article
III.C. This amount will equal the sum of the average industry expenses
ratios for ``Other Acq.'', ``Gen. Exp.'' and ``Taxes'' calculated by
aggregating premiums and expense amounts for each of five property
coverages using direct premium and expense information to derive
weighted average expense ratios. For this purpose, FEMA will use data
for the property/casualty industry published, as of March 15 of the
prior Arrangement year, in Part III of the Insurance Expense Exhibit in
A.M. Best Company's Aggregates and Averages for the following five
property coverages: Fire, Allied Lines, Farmowners Multiple Peril,
Homeowners Multiple Peril, and Commercial Multiple Peril (non-liability
portion).
    2. Agent Compensation. The Company may retain fifteen (15) percent
of the Company's written premium on the policies covered by this
Arrangement as the commission allowance to meet the commissions or
salaries of insurance agents, brokers, or other entities producing
qualified flood insurance applications and other related expenses.
    3. Growth Bonus. FEMA may increase the amount of expense allowance
retained by the Company depending on the extent to which the Company
meets the marketing goals for the Arrangement year contained in
marketing guidelines established pursuant to Article II.G. The total
growth bonuses paid to companies pursuant to this Arrangement may not
exceed two (2) percent of the aggregate net written premium collected
by all WYO companies. FEMA will pay the Company the amount of any
increase after the end of the Arrangement year.
    4. Reimbursement for Services of a National Rating Organization.
The Company, with the consent of FEMA as to terms and costs, may use
the services of a national rating organization, licensed under state
law, to help us undertake and carry out such studies and investigations
on a community or individual risk basis, and to determine equitable and
accurate estimates of flood insurance risk premium rates as authorized
under the Act, as amended. FEMA will reimburse the Company for the
charges or fees for such services under the provisions of the WYO
Accounting Procedures Manual.
    C. FEMA will reimburse Loss Adjustment Expenses as follows:
    1. FEMA will reimburse unallocated loss adjustment expenses to the
Company pursuant to a ``ULAE Schedule'' coordinated with the Company
and provided by FEMA.
    2. FEMA will reimburse allocated loss adjustment expenses to the
Company pursuant to a ``Fee Schedule'' coordinated with the Company and
provided by FEMA. To ensure the availability of qualified insurance
adjusters during catastrophic flood events, FEMA may, in its sole
discretion, temporarily authorize the use of an alternative Fee
Schedule with increased amounts during the term of this Arrangement for
losses incurred during a time frame and geographic area established by
FEMA.
    3. FEMA will reimburse special allocated loss expenses to the
Company in accordance with guidelines issued by FEMA.
    D. Loss Payments.
    1. The Company must make loss payments for flood insurance policies
from federal funds retained in the bank account(s) established under
Article II.E and, if such funds are depleted, from federal funds
derived by drawing against the Letter of Credit established pursuant to
Article IV.
    2. Loss payments include payments because of litigation that arises
under the scope of this Arrangement, and the Authorities set forth
herein. All such loss payments and related expenses must meet the
documentation requirements of the Financial Control Plan and of this
Arrangement, and the Company must comply with the litigation
documentation and notification requirements established by FEMA.
Failure to meet these requirements may result in FEMA's decision not to
provide reimbursement.
    3. Limitation on Litigation Costs.
    a. Following receipt of notice of such litigation, the FEMA Office
of Chief Counsel (``OCC'') will review the information submitted. If
OCC finds that

the litigation is grounded in actions by the Company that are
significantly outside the scope of this Arrangement, and/or involves
issues of agent negligence, then OCC may make a recommendation
regarding whether all or part of the litigation is significantly
outside the scope of the Arrangement.
    b. In the event the FEMA determines that the litigation is grounded
in actions by the Company that are significantly outside the scope of
this Arrangement, and/or involves issues of agent negligence, then FEMA
will notify the Company in writing within thirty (30) days that any
award or judgment for damages and any costs to defend such litigation
will not be recognized under Article III as a reimbursable loss cost,
expense, or expense reimbursement.
    c. In the event a question arises whether only part of the costs of
a litigation is reimbursable, OCC may make a recommendation about the
appropriate division of responsibility, if possible.
    d. In the event that the Company wishes to petition for
reconsideration of the determination that it will not be reimbursed for
any part of the award or judgment or any part of the costs expended to
defend such litigation made under Article III.D.3.a-c, it may do so by
mailing, within thirty (30) days of the notice that reimbursement will
not be made, a written petition to FEMA, who may request advice on
other than legal matters of the WYO Standards Committee established
under the WYO Financial Control Plan. The WYO Standards Committee will
consider the request at its next regularly scheduled meeting or at a
special meeting called for that purpose by the Chairman and issue a
written recommendation to the Administrator. FEMA's final determination
will be made in writing within a reasonable time to the Company.
    E. The Company must make premium refunds required by FEMA to
applicants and policyholders from federal flood insurance funds
referred to in Article II.E, and, if such funds are depleted, from
funds derived by drawing against the Letter of Credit established
pursuant to Article IV. The Company may not refund any premium to
applicants or policyholders in any manner other than as specified by
FEMA since flood insurance premiums are funds of the Federal
Government.

Article IV. Undertakings of the Government

    A. FEMA must establish Letter(s) of Credit against which the
Company may withdraw funds daily, if needed, pursuant to prescribed
procedures implemented by FEMA. The amounts of the authorizations will
be increased as necessary to meet the obligations of the Company under
Article III.C-E. The Company may only request funds when net premium
income has been depleted. The timing and amount of cash advances must
be as close as is administratively feasible to the actual disbursements
by the recipient organization for allowable Letter of Credit expenses.
Request for payment on Letters of Credit may not ordinarily be drawn
more frequently than daily. This Letter of Credit may be drawn by the
Company for any of the following reasons:
    1. Payment of claims, as described in Article III.D;
    2. Refunds to applicants and policyholders for insurance premium
overpayment, or if the application for insurance is rejected or when
cancellation or endorsement of a policy results in a premium refund, as
described in Article III.E; and
    3. Allocated and unallocated loss adjustment expenses, as described
in Article III.C.
    B. FEMA must provide technical assistance to the Company as
follows:
    1. FEMA's policy, history concerning underwriting, and claims
handling.
    2. A mechanism to assist in clarification of coverage and claims
questions.
    3. Other assistance as needed.
    C. FEMA must provide the Company with a copy of all formal written
appeal decisions conducted in accordance with Section 205 of the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004, Public
Law 108-264 and 44 CFR 62.20.
    D. Prior to the end of the Arrangement period, FEMA may provide the
Company a statistical summary of their performance during the signed
Arrangement period. This summary will detail the Company's performance
individually, as well as compare the Company's performance to the
aggregate performance of all WYO companies and the NFIP Direct
Servicing Agent.

Article V. Commencement and Termination

    A. The effective period of this Arrangement begins on October 1,
2018 and terminates no earlier than September 30, 2019, subject to
extension pursuant to Article V.C. FEMA may provide financial
assistance only for policy applications and endorsements accepted by
the Company during this period pursuant to the Program's effective
date, underwriting, and eligibility rules.
    B. Pursuant to 44 CFR 62.23(a), FEMA will publish the Arrangement
and the terms for subscription or re-subscription for Fiscal Year 2020
in the Federal Register no later than April 1, 2019. Upon such
publication, the Company must notify FEMA of its intent to re-subscribe
or not re-subscribe to the WYO Program for the following term within
ninety (90) calendar days.
    C. In addition to the requirements of Article V.B, in order to
assure uninterrupted service to policyholders, the Company must
promptly notify FEMA in the event the Company elects not to re-
subscribe to the WYO Program during the term of this Arrangement. If so
notified, or if FEMA chooses not to renew the Company's participation,
FEMA, at its option, may require the continued performance of all or
selected elements of this Arrangement for the period required for
orderly transfer or cessation of business and settlement of accounts,
not to exceed eighteen (18) months after the end of this Arrangement
(September 30, 2019), and may either require transfer of activities to
FEMA under Article V.C.1 or allow transfer of activities to another WYO
company under Article V.C.2:
    1. FEMA may require the Company to transfer all activities under
this Arrangement to FEMA. Within 30 calendar days of FEMA's election of
this option, the Company must deliver to FEMA the following:
    a. A plan for the orderly transfer to FEMA of any continuing
responsibilities in administering the policies issued by the Company
under the Program including provisions for coordination assistance.
    b. All data received, produced, and maintained through the life of
the Company's participation in the Program, including certain data, as
determined by FEMA, in a standard format and medium.
    c. All claims and policy files, including those pertaining to
receipts and disbursements that have occurred during the life of each
policy. In the event of a transfer of the services provided, the
Company must provide FEMA with a report showing, on a policy basis, any
amounts due from or payable to insureds, agents, brokers, and others as
of the transition date.
    d. All funds in its possession with respect to any policies
transferred to FEMA for administration and the unearned expenses
retained by the Company.
    e. A point of contact within the Company responsible for addressing
issues that may arise from the Company's previous participation under
the WYO Program.

    2. FEMA may allow the Company to transfer all activities under this
Arrangement to one or more other WYO companies. Prior to commencing
such transfer, the Company must submit and FEMA must approve a formal
request. Such request must include the following:
    a. An assurance of uninterrupted service to policyholders.
    b. A detailed transfer plan providing for either: (1) The renewal
of the Company's NFIP policies by one or more other WYO companies or
(2) the transfer of the Company's NFIP policies to one or more other
WYO companies.
    c. A description who the responsible party will be for liabilities
relating to losses incurred by the Company in this or preceding
Arrangement years.
    d. A point of contact within the Company responsible for addressing
issues that may arise from the Company's previous participation under
the WYO Program.
    D. Cancellation by FEMA.
    1. FEMA may cancel financial assistance under this Arrangement in
its entirety upon thirty (30) days written notice to the Company by
certified mail stating one or more of the following reasons for such
cancellation:
    a. Fraud or misrepresentation by the Company subsequent to the
inception of the Arrangement; or
    b. Nonpayment to FEMA of any amount due; or
    c. Material failure to comply with the requirements of this
Arrangement or with the written standards, procedures, or guidance
issued by FEMA relating to the NFIP and applicable to the Company.
    2. If FEMA cancels this Arrangement pursuant to Article V.D.1, FEMA
may require the transfer of administrative responsibilities and the
transfer of data and records as provided in Article V.C.1.a-d. If
transfer is required, the Company must remit to FEMA the unearned
expenses retained by the Company. In such event, FEMA will assume all
obligations and liabilities owed to policyholders under such policies,
arising before and after the date of transfer.
    3. As an alternative to the transfer of the policies to FEMA
pursuant to Article V.D.2, FEMA will consider a proposal, if it is made
by the Company, for the assumption of responsibilities by another WYO
company as provided in Article V.C.2.
    E. In the event that the Company is unable or otherwise fails to
carry out its obligations under this Arrangement by reason of any order
or directive duly issued by the Department of Insurance of any
jurisdiction to which the Company is subject, the Company agrees to
transfer, and FEMA will accept, any and all WYO policies issued by the
Company and in force as of the date of such inability or failure to
perform. In such event FEMA will assume all obligations and liabilities
within the scope of the Arrangement owed to policyholders arising
before and after the date of transfer, and the Company will immediately
transfer to FEMA all needed records and data and all funds in its
possession with respect to all such policies transferred and the
unearned expenses retained by the Company. As an alternative to the
transfer of the policies to FEMA, FEMA will consider a proposal, if it
is made by the Company, for the assumption of responsibilities by
another WYO company as provided by Article V.C.2.
    F. In the event the Act is amended, repealed, expires, or if FEMA
is otherwise without authority to continue the Program, FEMA may cancel
financial assistance under this Arrangement for any new or renewal
business, but the Arrangement will continue for policies in force that
shall be allowed to run their term under the Arrangement.

Article VI. Information and Annual Statements

    A. The Company must furnish to FEMA such summaries and analysis of
information including claim file information, and property address,
location, and/or site information in its records as may be necessary to
carry out the purposes of the Act, in such form as FEMA, in cooperation
with the Company, will prescribe.
    B. Upon FEMA's request, the Company must provide FEMA with a true
and correct copy of the Company's Fire and Casualty Annual Statement,
and Insurance Expense Exhibit or amendments thereof as filed with the
State Insurance Authority of the Company's domiciliary State.

Article VII. Cash Management and Accounting

    A. FEMA must make available to the Company during the entire term
of this Arrangement, and any continuation period required by FEMA
pursuant to Article V.C, the Letter of Credit provided for in Article
IV drawn on a repository bank within the Federal Reserve System. This
Letter of Credit may be drawn by the Company for reimbursement of its
expenses as set forth in Article IV that exceed net written premiums
collected by the Company from the effective date of this Arrangement or
continuation period to the date of the draw. In the event that adequate
Letter of Credit funding is not available to meet current Company
obligations for flood policy claim payments issued, FEMA must direct
the Company to immediately suspend the issuance of loss payments until
such time as adequate funds are available. The Company is not required
to pay claims from their own funds in the event of such suspension.
    B. The Company must remit all funds, including interest, not
required to meet current expenditures to the United States Treasury, in
accordance with the provisions of the WYO Accounting Procedures Manual
or procedures approved in writing by FEMA.
    C. In the event the Company elects not to participate in the
Program in this or any subsequent fiscal year, or is otherwise unable
or not permitted to participate, the Company and FEMA must make a
provisional settlement of all amounts due or owing within three (3)
months of the expiration or termination of this Arrangement. This
settlement must include net premiums collected, funds drawn on the
Letter of Credit, and reserves for outstanding claims. The Company and
FEMA agree to make a final settlement, subject to audit, of accounts
for all obligations arising from this Arrangement within eighteen (18)
months of its expiration or termination, except for contingent
liabilities that must be listed by the Company. At the time of final
settlement, the balance, if any, due FEMA or the Company must be
remitted by the other immediately and the operating year under this
Arrangement must be closed.

Article VIII. Arbitration

    If any misunderstanding or dispute arises between the Company and
FEMA with reference to any factual issue under any provisions of this
Arrangement or with respect to FEMA's nonrenewal of the Company's
participation, other than as to legal liability under or interpretation
of the Standard Flood Insurance Policy, such misunderstanding or
dispute may be submitted to arbitration for a determination that will
be binding upon approval by FEMA. The Company and FEMA may agree on and
appoint an arbitrator who will investigate the subject of the
misunderstanding or dispute and make a determination. If the Company
and FEMA cannot agree on the appointment of an arbitrator, then two
arbitrators will be appointed, one to be chosen by the Company and one
by FEMA.
    The two arbitrators so chosen, if they are unable to reach an
agreement, must select a third arbitrator who must act as

umpire, and such umpire's determination will become final only upon
approval by FEMA. The Company and FEMA shall bear in equal shares all
expenses of the arbitration. Findings, proposed awards, and
determinations resulting from arbitration proceedings carried out under
this section, upon objection by FEMA or the Company, shall be
inadmissible as evidence in any subsequent proceedings in any court of
competent jurisdiction.
    This Article shall indefinitely succeed the term of this
Arrangement.

Article IX. Errors and Omissions

    In the event of negligence by the Company that has not resulted in
litigation but has resulted in a claim against the Company, FEMA will
not consider reimbursement of the Company for costs incurred due to
that negligence unless the Company takes all reasonable actions to
rectify the negligence and to mitigate any such costs as soon as
possible after discovery of the negligence. The Company may choose not
to seek reimbursement from FEMA.
    Further, if the claim against the Company is grounded in actions
significantly outside the scope of this Arrangement or if there is
negligence by the agent, FEMA will not reimburse any costs incurred due
to that negligence. The Company will be notified in writing within
thirty (30) days of a decision not to reimburse. In the event the
Company wishes to petition for reconsideration of the decision not to
reimburse, the procedure in Article III.D.3.d applies.
    However, in the event that the Company has made a claim payment to
an insured without including a mortgagee (or trustee) of which the
Company had actual notice prior to making payment, and subsequently
determines that the mortgagee (or trustee) is also entitled to any part
of said claim payment, any additional payment may not be paid by the
Company from any portion of the premium and any funds derived from any
federal letter of credit deposited in the bank account described in
Article II.E. In addition, the Company agrees to hold the Federal
Government harmless against any claim asserted against the Federal
Government by any such mortgagee (or trustee), as described in the
preceding sentence, by reason of any claim payment made to any insured
under the circumstances described above.

Article X. Officials Not To Benefit

    No Member or Delegate to Congress, or Resident Commissioner, may be
admitted to any share or part of this Arrangement, or to any benefit
that may arise therefrom; but this provision may not be construed to
extend to this Arrangement if made with a corporation for its general
benefit.

Article XI. Offset

    At the settlement of accounts, the Company and FEMA has, and may
exercise, the right to offset any balance or balances, whether on
account of premiums, commissions, losses, loss adjustment expenses,
salvage, or otherwise due one party to the other, its successors or
assigns, hereunder or under any other Arrangements heretofore or
hereafter entered into between the Company and FEMA. This right of
offset shall not be affected or diminished because of insolvency of the
Company.
    All debts or credits of the same class, whether liquidated or
unliquidated, in favor of or against either party to this Arrangement
on the date of entry, or any order of conservation, receivership, or
liquidation, shall be deemed to be mutual debts and credits and shall
be offset with the balance only to be allowed or paid. No offset shall
be allowed where a conservator, receiver, or liquidator has been
appointed and where an obligation was purchased by or transferred to a
party hereunder to be used as an offset.
    Although a claim on the part of either party against the other may
be unliquidated or undetermined in amount on the date of the entry of
the order, such claim will be regarded as being in existence as of the
date of such order and any credits or claims of the same class then in
existence and held by the other party may be offset against it.

Article XII. Equal Opportunity

    The Company shall not discriminate against any applicant for
insurance because of race, color, religion, sex, age, handicap, marital
status, or national origin.

Article XIII. [Reserved]

[Reserved]

Article XIV. Access to Books and Records

    FEMA, the Department of Homeland Security, and the Comptroller
General of the United States, or their duly authorized representatives,
for the purpose of investigation, audit, and examination shall have
access to any books, documents, papers and records of the Company that
are pertinent to this Arrangement. The Company shall keep records that
fully disclose all matters pertinent to this Arrangement, including
premiums and claims paid or payable under policies issued pursuant to
this Arrangement. Records of accounts and records relating to financial
assistance shall be retained and available for three (3) years after
final settlement of accounts, and to financial assistance, three (3)
years after final adjustment of such claims. FEMA shall have access to
policyholder and claim records at all times for purposes of the review,
defense, examination, adjustment, or investigation of any claim under a
flood insurance policy subject to this Arrangement.

Article XV. Compliance With Act and Regulations

    This Arrangement and all policies of insurance issued pursuant
thereto are subject to federal law and regulations.

Article XVI. Relationship Between the Parties and the Insured

    Inasmuch as the Federal Government is a guarantor hereunder, the
primary relationship between the Company and the Federal Government is
one of a fiduciary nature, that is, to assure that any taxpayer funds
are accounted for and appropriately expended. The Company is a fiscal
agent of the Federal Government, but is not a general agent of the
Federal Government. The Company is solely responsible for its
obligations to its insured under any policy issued pursuant hereto,
such that the Federal Government is not a proper party to any lawsuit
arising out of such policies.

    Authority: 42 U.S.C. 4071, 4081; 44 CFR 62.23.

    Dated: March 8, 2018.
Roy E. Wright,
Deputy Associate Administrator for Insurance and Mitigation, Federal
Emergency Management Agency.
[FR Doc. 2018-05418 Filed 3-15-18; 8:45 am]
 BILLING CODE 9111-52-P


[Federal Register Volume 79, Number 152 (Thursday, August 7, 2014)]
[Notices]
[Page 46274]
[FR Doc No: 2014-18642]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4185-DR; Docket ID FEMA-2014-0003]

Nebraska; Major Disaster and Related Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This is a notice of the Presidential declaration of a major
disaster for the State of Nebraska (FEMA-4185-DR), dated July 28, 2014,
and related determinations.

DATES: Effective Date: July 28, 2014.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW.,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Notice is hereby given that, in a letter
dated July 28, 2014, the President issued a major disaster declaration
under the authority of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the ``Stafford
Act''), as follows:

    I have determined that the damage in certain areas of the State
of Nebraska resulting from severe storms, tornadoes, straight-line
winds, and flooding during the period of June 1-4, 2014, is of
sufficient severity and magnitude to warrant a major disaster
declaration under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the ``Stafford
Act''). Therefore, I declare that such a major disaster exists in
the State of Nebraska.
    In order to provide Federal assistance, you are hereby
authorized to allocate from funds available for these purposes such
amounts as you find necessary for Federal disaster assistance and
administrative expenses.
    You are authorized to provide Public Assistance in the
designated areas and Hazard Mitigation throughout the State.
Consistent with the requirement that Federal assistance be
supplemental, any Federal funds provided under the Stafford Act for
Hazard Mitigation will be limited to 75 percent of the total
eligible costs. Federal funds provided under the Stafford Act for
Public Assistance also will be limited to 75 percent of the total
eligible costs, with the exception of projects that meet the
eligibility criteria for a higher Federal cost-sharing percentage
under the Public Assistance Alternative Procedures Pilot Program for
Debris Removal implemented pursuant to section 428 of the Stafford
Act.
    Further, you are authorized to make changes to this declaration
for the approved assistance to the extent allowable under the
Stafford Act.

    The Federal Emergency Management Agency (FEMA) hereby gives notice
that pursuant to the authority vested in the Administrator, under
Executive Order 12148, as amended, Christian Van Alstyne, of FEMA is
appointed to act as the Federal Coordinating Officer for this major
disaster.
    The following areas of the State of Nebraska have been designated
as adversely affected by this major disaster:

    Burt, Butler, Cass, Hamilton, Holt, Nemaha, Pawnee, Polk, Rock,
Thurston, Valley, and Washington Counties for Public Assistance.
    All counties within the State of Nebraska are eligible to apply
for assistance under the Hazard Mitigation Grant Program.

The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households In
Presidentially Declared Disaster Areas; 97.049, Presidentially
Declared Disaster Assistance--Disaster Housing Operations for
Individuals and Households; 97.050, Presidentially Declared Disaster
Assistance to Individuals and Households--Other Needs; 97.036,
Disaster Grants--Public Assistance (Presidentially Declared
Disasters); 97.039, Hazard Mitigation Grant.

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2014-18642 Filed 8-6-14; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 87, Number 157 (Tuesday, August 16, 2022)]
[Notices]
[Pages 50359-50360]
[FR Doc No: 2022-17530]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95461]

Order Granting Application by Nasdaq PHLX LLC for an Exemption
Pursuant to Section 36(a) of the Exchange Act From the Rule Filing
Requirements of Section 19(b) of the Exchange Act With Respect to
Certain Rules Incorporated by Reference

August 10, 2022. Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') has filed
with the Securities and Exchange Commission (``Commission'') an
application for an exemption under Section 36(a)(1) of the Securities
Exchange Act of 1934 (``Exchange Act'') \1\ from the rule filing
requirements of Section 19(b) of the Exchange Act \2\ with respect to
certain rules of The Nasdaq Stock Exchange, LLC (``Nasdaq'') that the
Exchange seeks to incorporate by reference.\3\ Section 36 of the
Exchange Act, subject to certain limitations, authorizes the Commission
to conditionally or unconditionally exempt any person, security, or
transaction, or any class thereof, from any provision of the Exchange
Act or rule thereunder, if necessary or appropriate in the public
interest and consistent with the protection of investors.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78mm(a)(1).
    \2\ 15 U.S.C. 78s(b).
    \3\ See Letter from Angela S. Dunn, Principal Associate General
Counsel, Phlx, to J. Matthew DeLesDernier, Assistant Secretary,
Commission, dated July 8, 2022 (``Exemptive Request'').
---------------------------------------------------------------------------

    The Exchange has requested, pursuant to Rule 0-12 under the
Exchange Act,\4\ that the Commission grant the Exchange an exemption
from the rule filing requirements of Section 19(b) of the Exchange Act
for changes to the Exchange's rules that are effected solely by virtue
of a change to a cross-referenced Nasdaq rule. Specifically, the
Exchange requests that it be permitted to incorporate by reference
changes made to the General 3 Membership and Access Rule 1000 Series
(``Rule 1000 Series'') of the Nasdaq rulebook into General 3 Membership
and Access of the Exchange's rulebook.\5\
---------------------------------------------------------------------------

    \4\ 17 CFR 240.0-12.
    \5\ See Exemptive Request, supra note 3, at 2. The Exchange
notes that it recently filed a proposed rule change under Section
19(b) of the Exchange Act to replace its existing membership rules,
as set forth in General 3 of its rulebook, with the Rule 1000 Series
of the Nasdaq rulebook, as such rules may be in effect from time to
time. See id., at 1, n. 4. See also Securities Exchange Act Release
No. 95219 (July 7, 2022), 87 FR 41814 (July 13, 2022) (SR-Phlx-2022-
28).
---------------------------------------------------------------------------

    The Exchange represents that the Nasdaq rules listed above are
regulatory rules and not trading rules.\6\ The Exchange represents
that, as a condition to the requested exemption from Section 19(b) of
the Exchange Act, the Exchange will provide written notice to its
applicants, members, and member organizations whenever Nasdaq proposes
a change to the Rule 1000 Series.\7\ The Exchange states that such
notice will alert its applicants, members, and member organizations to
the proposed Nasdaq rule change and give them an opportunity to comment
on the proposal.\8\ The Exchange further represents that it will inform
applicants, members, and member organizations in writing when the
Commission approves any such proposed rule changes.\9\
---------------------------------------------------------------------------

    \6\ See id. at 2, n.7. The Exchange also states that it is not
``cherry picking'' because the Exchange would be incorporating
categories of rules. See id.
    \7\ See id. at 3. The Exchange represents that it will provide
such notice via a posting on the same website location where the
Exchange posts its own rule filings pursuant to Rule 19b-4(l) within
the time frame required by such rule. See id. at 3, n.8. The website
posting will include a link to the location on Nasdaq's website
where the applicable proposed rule change is posted. See id.
    \8\ See id.
    \9\ See id.
---------------------------------------------------------------------------

    According to the Exchange, this exemption is appropriate because it
would result in the Exchange's rules pertaining to membership being
consistent with the relevant cross-referenced Nasdaq rules at all
times.\10\ The Exchange further states that harmonization of these
membership rules and processes will ease compliance burdens for those
seeking membership on both exchanges and increase internal efficiencies
associated with administering the membership rules and processes of
each exchange.\11\
---------------------------------------------------------------------------

    \10\ See id. at 2.
    \11\ See id.
---------------------------------------------------------------------------

    The Commission has issued exemptions similar to the Exchange's
request.\12\ In granting similar exemptions, the Commission stated that
it would consider similar future exemption requests, provided that:
---------------------------------------------------------------------------

    \12\ See, e.g., Securities Exchange Act Release Nos. 83296 (May
21, 2018), 83 FR 24362 (May 25, 2018) (order granting NYSE National,
Inc.'s exemptive request relating to rules of Nasdaq incorporated by
reference); 83040 (April 12, 2018), 83 FR 17198 (April 18, 2018)
(order granting MIAX PEARL, LLC's exemptive request relating to
rules of the Miami International Securities Exchange, LLC
incorporated by reference); 76998 (January 29, 2016), 81 FR 6066,
6083-84 (February 4, 2016) (order granting application for
registration as a national securities exchange of ISE Mercury, LLC
and exemptive request relating to rules of certain self-regulatory
organizations (``SROs'') (including Nasdaq) incorporated by
reference); 61534 (February 18, 2010), 75 FR 8760 (February 25,
2010) (order granting BATS Exchange, Inc.'s exemptive request
relating to rules incorporated by reference by the BATS Exchange
Options Market rules) (``BATS Options Market Order''); 61152
(December 10, 2009), 74 FR 66699, 66709-10 (December 16, 2009)
(order granting application for registration as a national
securities exchange of C2 Options Exchange, Incorporated and
exemptive request relating to rules of the Chicago Board Options
Exchange, Incorporated, incorporated by reference).
---------------------------------------------------------------------------

     An SRO wishing to incorporate rules of another SRO by
reference has submitted a written request for an order exempting it
from the requirement in Section 19(b) of the Exchange Act to file
proposed rule changes relating to the rules incorporated by reference,
has identified the applicable originating SRO(s), together with the
rules it wants to incorporate by reference, and otherwise has complied
with the procedural requirements set forth in the Commission's release
governing procedures for requesting exemptive orders pursuant to Rule
0-12 under the Exchange Act; \13\
---------------------------------------------------------------------------

    \13\ See 17 CFR 240.0-12 and Securities Exchange Act Release No.
39624 (February 5, 1998), 63 FR 8101 (February 18, 1998) (Commission
Procedures for Filing Applications for Orders for Exemptive Relief
Pursuant to Section 36 of the Exchange Act; Final Rule).
---------------------------------------------------------------------------

     The incorporating SRO has requested incorporation of
categories of rules (rather than individual rules within a category)
that are not trading rules (e.g., the SRO has requested incorporation
of rules such as margin, suitability, or arbitration); and
     The incorporating SRO has reasonable procedures in place
to provide written notice to its members each time a change is proposed
to the incorporated rules of another SRO.\14\
---------------------------------------------------------------------------

    \14\ See BATS Options Market Order, supra note 12 (citing
Securities Exchange Act Release No. 49260 (February 17, 2004), 69 FR
8500 (February 24, 2004) (order granting exemptive request relating
to rules incorporated by reference by several SROs) (``2004
Order'')).
---------------------------------------------------------------------------

    The Commission believes that the Exchange has satisfied each of
these conditions. The Commission also believes that granting the
Exchange an exemption from the rule filing requirements under Section
19(b) of the Exchange Act will promote efficient use of the
Commission's and the Exchange's resources by avoiding duplicative rule
filings based on simultaneous changes to identical rule text sought by
more than one SRO.\15\ The Commission therefore finds it appropriate in
the public interest and consistent with the protection of investors to
exempt the Exchange from the rule filing requirements under Section
19(b) of the Exchange Act with respect to the above-described Nasdaq
rules it has incorporated by reference. This exemption is conditioned
upon the Exchange promptly providing written notice to its applicants
and members whenever Nasdaq changes a rule that

the Exchange has incorporated by reference.
---------------------------------------------------------------------------

    \15\ See BATS Options Market Order, supra note 12, 75 FR at
8761; see also 2004 Order, supra note 14, 69 FR at 8502.
---------------------------------------------------------------------------

    Accordingly, it is ordered, pursuant to Section 36 of the Exchange
Act,\16\ that the Exchange is exempt from the rule filing requirements
of Section 19(b) of the Exchange Act solely with respect to changes to
the rules identified in the Exemptive Request, provided that the
Exchange promptly provides written notice to its applicants and members
whenever Nasdaq proposes to change a rule that the Exchange has
incorporated by reference.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78mm.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

    \17\ 17 CFR 200.30-3(a)(76).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-17530 Filed 8-15-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: March 11, 2008 (Volume 73, Number 48)]
[Notices]
[Page 13052]
[DOCID:fr11mr08-112]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. IC-28184; 811-4193]

RSI Retirement Trust; Notice of Application

March 5, 2008.
AGENCY: Securities and Exchange Commission (``SEC'').

ACTION: Notice of application for deregistration under section 8(f) of
the Investment Company Act of 1940 (the ``Act'').

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

     Summary of Application: Applicant requests an order declaring that
it has ceased to be an investment company.
     Filing Date: The application was filed on March 4, 2008.
     Hearing or Notification of Hearing: An order granting the
application will be issued unless the SEC orders a hearing. Interested
persons may request a hearing by writing to the SEC's Secretary and
serving applicant with a copy of the request, personally or by mail.
Hearing requests should be received by the SEC by 5:30 p.m. on March
25, 2008, and should be accompanied by proof of service on the
applicant, in the form of an affidavit or, for lawyers, a certificate
of service. Hearing request should state the nature of the writer's
interest, the reason for the request, and the issues contested. Persons
may request notification of a hearing by writing to the SEC's
Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
St., NE., Washington, DC 20549-1090. Applicant, 150 East 42nd St., New
York, NY 10017.

FOR FURTHER INFORMATION CONTACT: Diane L. Titus, Paralegal Specialist,
at<PHONE_NUMBER>, or Mary Kay Frech, Branch Chief, at<PHONE_NUMBER>
(Division of Investment Management, Office of Investment Company
Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee at the
SEC's Public Reference Desk, 100 F Street, NE., Washington, DC 20549-
1520 (tel.<PHONE_NUMBER>).

Applicant's Representations and Legal Analysis

    Applicant is registered under the Act as an open-end management
investment company. On December 27, 2007, applicant's securityholders
voted to approve a mandatory redemption of certain of applicant's
securityholders and deregistration under the Act.
    Applicant's securities are currently owned by 45 persons. Applicant
states that its outstanding securities are not currently and will not
be beneficially owned by more than 100 persons and it is not now making
and does not propose to make a public offering of its securities.
Applicant states that it will continue to operate as a company excepted
from the definition of investment company pursuant to section 3(c)(1)
of the Act. Applicant requests an order under section 8(f) of the Act
declaring that it has ceased to be an investment company.

    For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-4750 Filed 3-10-08; 8:45 am]

BILLING CODE 8011-01-P