Debris Removal Insurance

 

The project will consist of the incorporation of a captive insurance company by the City of New York in the State of New York to insure the City and its contractors for claims arising from debris removal at the World Trade Center following the terrorist attacks of September 11, 2001.

Deleted 10/11/2010 (Archived.) 97.064 Agency: Department of Homeland Security INSURANCE Not Applicable. Consolidated Appropriations Resolution, 2003, Public Law 108-7. The grant is made available for the State of New York to insure the City of New York and its debris removal contractors. Insurance coverage obtained with grant funds shall be available solely for the City of New York and those contractors that were paid by the City to perform debris removal at the World Trade Center site. Costs determined in accordance with the Consolidated Appropriations Resolution, 2003, Public Law 108-7 and the Conference Report accompanying Public Law 108-7. OMB Circular No. A-87 applies to this program. Following the Presidential declaration of a major disaster for the State of New York for the terrorist attacks of September 11, 2001, the Governor's Authorized Representative for the disaster made a written request for $1 billion in funding from FEMA to establish a captive insurance company to insure the City of New York and its contractors for claims arising from debris removal at the World Trade Center. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372. OMB Circular No. A-102 applies to this program. This program is excluded from coverage under OMB Circular No. A-110. With authority provided to FEMA by the Consolidated Appropriations Resolution, 2003, Public Law 108-7, FEMA will accept application from the State and City of New York for funding to establish a captive insurance company in the State of New York with execution of an SF-424; FEMA Forms 20-16, 20-16A, 20-16C; Disclosure of Lobbing Activities Form LLL; and a grant agreement. With authority provided by the Consolidated Appropriations Resolution, 2003, Public Law 108-7, FEMA will provide $999.9 million to establish a captive insurance company or other appropriate insurance mechanism to insure the City and its contractors for claims arising from debris removal when the State and City have completed the application procedure and FEMA has agreed to and approved all terms, conditions and scope of insurance coverage. The Grant Award is the maximum award for which FEMA has authority and funding. Absent additional authority and funding from Congress, this Grant Agreement is not subject to amendment for purposes of increasing the amount of the Award. The Award of Federal assistance in support of the Project described herein is effective on the date that the authorized FEMA official signs the Grant Agreement. Upon execution of the Grant Agreement by the Grantee, the Grantee affirms the Award in support of the said Project and enters into the Grant Agreement with FEMA. Contact the headquarters or regional office, as appropriate, for application deadlines. From three to four weeks. Not Applicable. Not Applicable. Not applicable. The captive insurance company will provide insurance coverage exclusively for the City of New York and those contractors that were paid by the City to perform debris removal at the World Trade Center site. The insurance company will not provide insurance coverage to any other persons or entities. The grant is made available for the State of New York to insure the City of New York and its debris removal contractors. The Grantee shall submit to FEMA and the New York State Insurance Department (SID) the following reports: a) A report from the Captive 30 days after the Captive has reported to the Grantee, the City and the designate representative of the Contractors each calendar quarter of losses incurred, losses paid, changes in experience account balance, and changes in individual and aggregate case reserves and indicated reserves for losses incurred but not reported during the immediately preceding calendar quarter; b) The annual reports the Captive must submit to the Superintendent of SID (within 10 days of such submission); c) The annual financial statements (which shall be prepared no later than ninety days following the last day of each calendar year and audited by an independent auditor whose selection was made following 30 days notice to FEMA); and d) The minutes of all meetings of the Captive Board of Directors and Advisory Committee. The Grantee shall also report quarterly, beginning June 30, 2003, to the Committees on Appropriations of the U.S. Congress and FEMA, regarding the expenditure of and investment earnings from the Grant Award, utilizing information culled from the reporting requirements listed above. The Grantee shall submit a Financial Status Report, SF 269, within 30 days from the end of the federal quarter that the Grantee expends the funds. The financial and performance reports required by this Article will also be utilized to satisfy the after-the-grant requirements of 44 C.F.R. Sec. 13.50. The Grantee shall submit required reports to FEMA at: 500 C Street SW, Washington DC 20472. Attn: Assistance Officer, Administration and Resource Planning. Refer to program guidance. Refer to program guidance. Refer to program guidance. Refer to program guidance. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Grantee must follow the audit requirements under OMB Circular No. A-133. Non-Federal entities that expend the amount listed in OMB Circular No. A-133 or more Federal funds in a year shall have a single or program-specific audit conducted for that year in accordance with the provisions of A-133. Records shall be retained for 3 years (except in certain rare circumstances described in 44 C.F.R. Sec. 13.42) from the date the final financial status report is submitted to FEMA in compliance with 44 C.F.R. Sec. 13.42. The Captive's books and records shall be made available to FEMA and SEMO upon reasonable notice. Statutory formulas are not applicable to this program.
This program has no matching requirements. The Federal Share is 100 of eligible work. There is no State or local governmen matching requirement.
MOE requirements are not applicable to this program. Upon transfer of the Grant Award to the Captive through the State and City, the Captive will use the Award for the purposes described in the Grant Agreement, with attachments, for an initial period of up to 25 years from the effective date of the Grant Agreement and will not use the Award for any other purpose. In the event the Captive is unable to terminate its liabilities within the 25 year period because it would not be commercially reasonable or cost effective to do so, a request to extend the Period of Performance will be considered. An extension request must be supported by adequate written justification. No extension requests will be processed if performance and financial status reports are not current. See the following for information on how assistance is awarded/released: Refer to program guidance. See Regional Agency Offices. Federal Emergency Management Agency, 26 Federal Plaza, New York, N.Y. 10278. Telephone: (212) 680-8518. Gerald Connolly 245 Murray Lane - Bldg. #410, Washington, District of Columbia 20523 Phone: 202-646-3587 http://www.fema.gov/rrr/pa. 70-0702-0-1-453. (Insurance) FY 08 $0; FY 09 est $0; FY 10 est $0 Not applicable. The Consolidated Appropriations Resolution, 2003, Public Law 108-7 and the accompanying Conference Report directing FEMA to fund a captive insurance company or other appropriation insurance mechanism for the City of New York and its debris removal contractors have no implementing regulations or guidelines. Not Applicable.