[Federal Register Volume 66, Number 206 (Wednesday, October 24, 2001)]
[Rules and Regulations]
[Pages 53731-53734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26812]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Part 544
[Docket No. NHTSA-2001-001; Notice 02]
RIN 2127-AI07
Insurer Reporting Requirements; List of Insurers Required To File
Reports
AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Final rule.
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SUMMARY: This final rule updates Appendices A, B, and C of 49 CFR part
544, insurer reporting requirements. The appendices list those
passenger motor vehicle insurers that are required to file reports on
their motor vehicle theft loss experiences. An insurer included in any
of these appendices must file three copies of its report for the 1998
calendar year before October 25, 2001.
DATES: The final rule on this subject is effective October 24, 2001.
Insurers listed in the appendices are required to submit reports on or
before October 25, 2001.
FOR FURTHER INFORMATION CONTACT: Ms. Henrietta L. Spinner, Office of
Planning and Consumer Programs, NHTSA, 400 Seventh Street, SW.,
Washington, DC 20590. Ms. Spinner's telephone number is (202) 366-4802.
Her fax number is (202) 493-2290.
SUPPLEMENTARY INFORMATION:
Background
Pursuant to 49 U.S.C. 33112, Insurer reports and information, NHTSA
requires certain passenger motor vehicle insurers to file an annual
report with the agency. Each insurer's report includes information
about thefts and recoveries of motor vehicles, the rating rules used by
the insurer to establish premiums for comprehensive coverage, the
actions taken by the insurer to reduce such premiums, and the actions
taken by the insurer to reduce or deter theft. Under the agency's
regulation, 49 CFR part 544, the following insurers are subject to the
reporting requirements: (1) Those issuers of motor vehicle insurance
policies whose total premiums account for 1 percent or more of the
total premiums of motor vehicle insurance issued within the United
States; (2) those issuers of motor vehicle insurance policies whose
premiums account for 10 percent or more of total premiums written
within any one state; and (3) rental and leasing companies with a fleet
of 20 or more vehicles not covered
[[Page 53732]]
by theft insurance policies issued by insurers of motor vehicles, other
than any governmental entity.
Pursuant to its statutory exemption authority, the agency exempted
certain passenger motor vehicle insurers from the reporting
requirements.
A. Small Insurers of Passenger Motor Vehicles
Section 33112(f)(2) provides that the agency shall exempt small
insurers of passenger motor vehicles if NHTSA finds that such
exemptions will not significantly affect the validity or usefulness of
the information in the reports, either nationally or on a state-by-
state basis. The term ``small insurer'' is defined, in Section
33112(f)(1)(A) and (B), as an insurer whose premiums for motor vehicle
insurance issued directly or through an affiliate, including pooling
arrangements established under state law or regulation for the issuance
of motor vehicle insurance, account for less than 1 percent of the
total premiums for all forms of motor vehicle insurance issued by
insurers within the United States. However, that section also
stipulates that if an insurance company satisfies this definition of a
``small insurer,'' but accounts for 10 percent or more of the total
premiums for all motor vehicle insurance issued in a particular state,
the insurer must report about its operations in that state.
In the final rule establishing the insurer reports requirement (52
FR 59; January 2, 1987), 49 CFR part 544, NHTSA exercised its exemption
authority by listing in Appendix A each insurer that must report
because it had at least 1 percent of the motor vehicle insurance
premiums nationally. Listing the insurers subject to reporting, instead
of each insurer exempted from reporting because it had less than 1
percent of the premiums nationally, is administratively simpler since
the former group is much smaller than the latter. In Appendix B, NHTSA
lists those insurers required to report for particular states because
each insurer had a 10 percent or greater market share of motor vehicle
premiums in those states. In the January 1987 final rule, the agency
stated that it would update Appendices A and B annually. NHTSA updates
the appendices based on data voluntarily provided by insurance
companies to A.M. Best, which A.M. Best publishes in its State/Line
Report each spring. The agency uses the data to determine the insurers'
market shares nationally and in each state.
B. Self-Insured Rental and Leasing Companies
In addition, upon making certain determinations, NHTSA grants
exemptions to self-insurers, i.e., any person who has a fleet of 20 or
more motor vehicles (other than any governmental entity) used for
rental or lease whose vehicles are not covered by theft insurance
policies issued by insurers of passenger motor vehicles, 49 U.S.C.
33112(b)(1) and (f). NHTSA may exempt a self-insurer from reporting, if
the agency determines:
(1) The cost of preparing and furnishing such reports is excessive
in relation to the size of the business of the insurer; and
(2) The insurer's report will not significantly contribute to
carrying out the purposes of Chapter 331.
In a final rule published June 22, 1990 (55 FR 25606), the agency
granted a class exemption to all companies that rent or lease fewer
than 50,000 vehicles, because it believed that the largest companies'
reports sufficiently represent the theft experience of rental and
leasing companies. NHTSA concluded that smaller rental and leasing
companies' reports do not significantly contribute to carrying out
NHTSA's statutory obligations and that exempting such companies will
relieve an unnecessary burden on them. As a result of the June 1990
final rule, the agency added Appendix C, consisting of an annually
updated list of the self-insurers subject to part 544. Following the
same approach as in Appendix A, NHTSA included, in Appendix C, each of
the self-insurers subject to reporting instead of the self-insurers
which are exempted. NHTSA updates Appendix C based primarily on
information from Automotive Fleet Magazine and Business Travel News.
C. When a Listed Insurer Must File a Report
Under Part 544, as long as an insurer is listed, it must file
reports on or before October 25 of each year. Thus, any insurer listed
in the appendices must file a report by October 25, and by each
succeeding October 25, absent an amendment removing the insurer's name
from the appendices.
Notice of Proposed Rulemaking
1. Insurers of Passenger Motor Vehicles
On August 7, 2001, NHTSA published a notice of proposed rulemaking
(NPRM) to update the list of insurers in Appendices A, B, and C
required to file reports (66 FR 41190). Appendix A lists insurers that
must report because each had 1 percent of the motor vehicle insurance
premiums on a national basis. The list was last amended in a final rule
published on August 14, 2000 (65 FR 49505). Based on the 1998 calendar
year data market shares from A.M. Best, we proposed to remove
Prudential of America Group and Zurich Insurance Group-U.S. from
Appendix A and to add CGU Group, SAFECO Insurance Companies, and St.
Paul Companies to Appendix A.
Each of the 19 insurers listed in Appendix A is required to file a
report before October 25, 2001, setting forth the information required
by Part 544 for each State in which it did business in the 1998
calendar year. As long as these 19 insurers remain listed, they would
be required to submit reports by each subsequent October 25 for the
calendar year ending slightly less than 3 years before.
Appendix B lists insurers required to report for particular States
for calendar year 1998, because each insurer had a 10 percent or
greater market share of motor vehicle premiums in those States. Based
on the 1998 calendar year data for market shares from A.M. Best, we
proposed to remove Allmerica P & C Companies, Commercial Union
Insurance Companies, and Nodak Mutual Insurance Company from Appendix B
and to add New Jersey Manufacturers Group to Appendix B.
The nine insurers listed in Appendix B are required to report on
their calendar year 1998 activities in every State where they had a 10
percent or greater market share. These reports must be filed by October
25, 2001, and set forth the information required by part 544. As long
as these nine insurers remain listed, they would be required to submit
reports on or before each subsequent October 25 for the calendar year
ending slightly less than 3 years before.
2. Rental and Leasing Companies
Appendix C lists rental and leasing companies required to file
reports. Based on information in Automotive Fleet Magazine and Business
Travel News for 1998, NHTSA proposed to remove Ford Rent-A-Car-System,
Ryder System, Inc., and USL Capital Fleet Services from Appendix C and
to add Consolidated Service Corporation to Appendix C. Each of the 17
companies (including franchisees and licensees) listed in Appendix C
would be required to file reports for calendar year 1998 no later than
October 25, 2001, and set forth the information required by Part 544.
As long as those 17 companies remain listed, they would be required to
submit reports before each subsequent
[[Page 53733]]
October 25 for the calendar year ending slightly less than 3 years
before.
Public Comments on Final Determination
Insurers of Passenger Motor Vehicles
In response to the NPRM, the agency received no comments.
Accordingly, this final rule adopts the proposed changes to Appendices
A, B, and C.
Regulatory Impacts
1. Costs and Other Impacts
This notice has not been reviewed under Executive Order 12866.
NHTSA has considered the impact of this proposed rule and has
determined that the action is not ``significant'' within the meaning of
the Department of Transportation's regulatory policies and procedures.
This rule implements the agency's policy of ensuring that all insurance
companies that are statutorily eligible for exemption from the insurer
reporting requirements are in fact exempted from those requirements.
Only those companies that are not statutorily eligible for an exemption
are required to file reports.
NHTSA does not believe that this rule, reflecting current data,
affects the impacts described in the final regulatory evaluation
prepared for the final rule establishing part 544 (52 FR 59; January 2,
1987). Accordingly, a separate regulatory evaluation has not been
prepared for this rulemaking action. Using the Bureau of Labor
Statistics Consumer Price Index for 2000, the cost estimates in the
1987 final regulatory evaluation were adjusted for inflation. The
agency estimates that the cost of compliance is $86,100 for any insurer
added to Appendix A, $34,440 for any insurer added to Appendix B, and
$9,936 for any insurer added to Appendix C. In this final rule, for
Appendix A, the agency removed two companies and added three companies;
for Appendix B, the agency removed three companies and added one
company; and for Appendix C, the agency removed two companies and added
one company. The agency estimates that the net effect of this final
rule, would be $7,284 to insurers as a group.
Interested persons may wish to examine the 1987 final regulatory
evaluation. Copies of that evaluation were placed in Docket No. T86-01;
Notice 2. Any interested person may obtain a copy of this evaluation by
writing to NHTSA, Docket Section, Room 5109, 400 Seventh Street, SW,
Washington, DC 20590, or by calling (202) 366-4949.
2. Paperwork Reduction Act
The information collection requirements in this final rule were
submitted and approved by the Office of Management and Budget (OMB)
pursuant to the requirements of the Paperwork Reduction Act (44 U.S.C.
3501 et seq.). This collection of information is assigned OMB Control
Number 2127-0547 (``Insurer Reporting Requirements'') and approved for
use through August 31, 2003, and the agency will seek to extend the
approval afterwards.
3. Regulatory Flexibility Act
The agency also considered the effects of this rulemaking under the
Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.). I certify that
this final rule will not have a significant economic impact on a
substantial number of small entities. The rationale for the
certification is that none of the companies proposed for Appendices A,
B, or C are construed to be a small entity within the definition of the
RFA. ``Small insurer'' is defined, in part under 49 U.S.C. 33112, as
any insurer whose premiums for all forms of motor vehicle insurance
account for less than 1 percent of the total premiums for all forms of
motor vehicle insurance issued by insurers within the United States, or
any insurer whose premiums within any State, account for less than 10
percent of the total premiums for all forms of motor vehicle insurance
issued by insurers within the State. This notice would exempt all
insurers meeting those criteria. Any insurer too large to meet those
criteria is not a small entity. In addition, in this rulemaking, the
agency proposes to exempt all ``self insured rental and leasing
companies'' that have fleets of fewer than 50,000 vehicles. Any self
insured rental and leasing company too large to meet that criterion is
not a small entity.
4. Federalism
This action has been analyzed according to the principles and
criteria contained in Executive Order 12612, and it has been determined
that the final rule does not have sufficient federalism implications to
warrant the preparation of a Federalism Assessment.
5. Environmental Impacts
In accordance with the National Environmental Policy Act, NHTSA has
considered the environmental impacts of this final rule and determined
that it would not have a significant impact on the quality of the human
environment.
6. Civil Justice Reform
This final rule does not have any retroactive effect, and it does
not preempt any State law. 49 U.S.C. 33117 provides that judicial
review of this rule may be obtained pursuant to 49 U.S.C. 32909, and
section 32909 does not require submission of a petition for
reconsideration or other administrative proceedings before parties may
file suit in court.
List of Subjects in 49 CFR Part 544
Crime insurance, Insurance, Insurance companies, Motor Vehicles,
Reporting and recordkeeping requirements.
In consideration of the foregoing, 49 CFR part 544 is amended as
follows:
PART 544--[AMENDED]
1. The authority citation for part 544 continues to read as
follows:
Authority: 49 U.S.C. 33112; delegation of authority at 49 CFR
1.50.
2. Paragraph (a) of Sec. 544.5 is revised to read as follows:
Sec. 544.5 General requirements for reports.
(a) Each insurer to which this part applies shall submit a report
annually before October 25, beginning on October 25, 1986. This report
shall contain the information required by Sec. 544.6 of this part for
the calendar year 3 years previous to the year in which the report is
filed (e.g., the report due by October 25, 2001 will contain the
required information for the 1998 calendar year).
* * * * *
3. Appendix A to Part 544 is revised to read as follows:
Appendix A--Insurers of Motor Vehicle Insurance Policies Subject to the
Reporting Requirements in Each State in Which They Do Business
Allstate Insurance Group
American Family Insurance Group
American Financial Group
American International Group
California State Auto Association
CGU Group \1\
CNA Insurance Companies
Erie Insurance Group
Farmers Insurance Group
Berkshire Hathaway/GEICO Corporation Group
Hartford Insurance Group
Liberty Mutual Insurance Companies
Nationwide Group
Progressive Group
SAFECO Insurance Companies\1\
St. Paul Companies\1\
State Farm Group
Travelers PC Group
USAA Group
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\1\ Indicates a newly listed company which must file a report
beginning with the report due October 25, 2001.
4. Appendix B to Part 544 is revised to read as follows:
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Appendix B--Issuers of Motor Vehicle Insurance Policies Subject to the
Reporting Requirements Only in Designated States
Alfa Insurance Group (Alabama)
Arbella Mutual Insurance (Massachusetts)
Auto Club of Michigan Group (Michigan)
Commerce Group, Inc. (Massachusetts)
Concord Group Insurance Companies (Vermont)
Kentucky Farm Bureau Group (Kentucky)
New Jersey Manufacturers Group (New Jersey)\1\
Southern Farm Bureau Group (Arkansas, Mississippi)
Tennessee Farmers Companies (Tennessee)
5. Appendix C to Part 544 is revised to read as follows:
Appendix C--Motor Vehicle Rental and Leasing Companies (Including
Licensees and Franchisees) Subject to the Reporting Requirements of
Part 544
Alamo Rent-A-Car, Inc.
ARI (Automotive Rentals, Inc.)
Associates Leasing Inc.
A T & T Automotive Services, Inc.
Avis, Rent-A-Car, Inc.
Budget Rent-A-Car Corporation
Consolidated Service Corporation \1\
Dollar Rent-A-Car Systems, Inc.
Donlen Corporation
Enterprise Rent-A-Car
GE Capital Fleet Services
Hertz Rent-A-Car Division (subsidiary of The Hertz Corporation)
Lease Plan USA, Inc.
National Car Rental System, Inc.
PHH Vehicle Management Services
U-Haul International, Inc. (Subsidiary of AMERCO)
Wheels Inc.
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\1\ Indicates a newly listed company which must file a report
beginning with the report due October 25, 2001.
Issued on: October 18, 2001.
Stephen R. Kratzke,
Associate Administrator for Safety Performance Standards.
[FR Doc. 01-26812 Filed 10-23-01; 8:45 am]
BILLING CODE 4910-59-P