Insurance companies must comply with the disclosure requirements in order for claims filed with the federal government to be certified.

The guidance issued today said that Treasury will deem an insurer to be in compliance if it makes the required disclosure twice.

The first time is no later than the time the insurer first formally offers to provide the coverage or renew a policy for a current policyholder.

The second time is at the time the transaction is completed, if the insurance company makes a clear and conspicuous reference back to the disclosure.

The required disclosure can be made by using channels, methods and forms of communication normally used to communicate similar information.

Treasury notes that this method represents a safe harbor, but is not the exclusive means of compliance.

The legislation also requires insurers to make the required disclosures on a separate line item in the policy.

Treasury said insurers will be deemed in compliance with this requirement if the disclosure appears on the declarations page, elsewhere in the policy itself, or in any rider or endorsement.

In addition, the legislation requires insurers to certify that they are in compliance with the disclosure requirement. Treasury said it will issue regulations establishing claims procedures. Treasury said it expects that the regulations will require insurers to certify compliance at the time a claim is submitted.

Wayne Abernathy, assistant Treasury secretary for financial institutions, said that the guidance is designed to assist insurers in determining how they must comply with certain provisions of the legislation that are immediately applicable.

At the same time, he said, Treasury is working overtime to develop formal regulations.

A complete copy of today's guidance is available from Treasury's web side at www.treas.gov/trip.