97-4355. Insurer Reporting Requirements; List of Insurers Required to File Reports  

  • [Federal Register Volume 62, Number 36 (Monday, February 24, 1997)]
    [Proposed Rules]
    [Pages 8206-8209]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-4355]
    
    
    
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    DEPARTMENT OF TRANSPORTATION
    
    National Highway Traffic Safety Administration
    
    49 CFR Part 544
    
    [Docket No. 96-130; Notice 01]
    RIN 2127-AG56
    
    
    Insurer Reporting Requirements; List of Insurers Required to File 
    Reports
    
    AGENCY: National Highway Traffic Safety Administration (NHTSA), 
    Department of Transportation (DOT).
    
    ACTION: Notice of proposed rulemaking.
    
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    SUMMARY: NHTSA proposes to update its lists in Appendices A, B, and C 
    of Part 544 of passenger motor vehicle insurers that are required to 
    file reports on their motor vehicle theft loss experiences. If these 
    revised appendices are adopted in a final rule, each insurer included 
    in any of these appendices must file a report for the 1994 calendar 
    year not later than October 25, 1997. Further, as long as they remain 
    listed, they must submit reports by each subsequent October 25.
    
    DATES: Comments on this proposed rule must be received by this agency 
    not later than April 25, 1997. If this rule is made final, insurers 
    listed in the appendices would be required to submit reports beginning 
    with the one due October 25, 1997.
    
    ADDRESSES: Comments on this proposed rule must refer to the docket 
    number referenced in the heading of this notice, and be submitted to: 
    Docket Section, NHTSA, Room 5109, 400 Seventh Street, SW, Washington, 
    DC 20590. Docket hours are 9:30 a.m. to 4:00 p.m., Monday through 
    Friday.
    
    FOR FURTHER INFORMATION CONTACT: Ms. Rosalind Proctor, Office of 
    Planning and Consumer Programs, NHTSA, 400 Seventh Street, SW, 
    Washington, DC 20590. Ms. Proctor's telephone number is (202) 366-1740. 
    Her fax number is (202) 493-2739.
    
    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. 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 implementing 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 by theft insurance policies issued by insurers of 
    motor vehicles, other than any governmental entity.
        Pursuant to its statutory exemption authority, the agency has 
    exempted smaller 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.
        As described in the final rule establishing the requirement for 
    insurer reports (52 FR 59, January 2, 1987), in 49 CFR Part 544, NHTSA 
    exercises its exemption authority by listing in Appendix A each insurer 
    which 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 that are 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 Appendices A and B will be 
    updated annually. It has been NHTSA's practice to update the appendices 
    based on data voluntarily provided by insurance companies to A.M. Best, 
    and made available for the agency 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 is 
    authorized to grant exemptions to self-insurers, i.e., any person who 
    has a fleet of 20 or more motor vehicles (other than any governmental 
    entity) which are used primarily for rental or lease and which 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 reports from only the 
    largest companies would sufficiently represent the theft experience of 
    rental and leasing companies. NHTSA concluded that reports by the many 
    smaller rental and leasing companies do not significantly contribute to 
    carrying out NHTSA's statutory obligations, and that exempting such 
    companies will relieve an unnecessary burden on most companies that 
    potentially must report. As a result of the June 1990 final rule, the 
    agency added a new Appendix C, which consists of an annually updated 
    list of the self-insurers that are subject to Part 544. Following the 
    same approach as in the case of Appendix A, NHTSA has included in 
    Appendix C each of the relatively few self-insurers which are subject 
    to reporting instead of relatively numerous self-insurers which are 
    exempted. NHTSA updates Appendix C based primarily on information from 
    the publications Automotive Fleet Magazine and Business Travel News.
    
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    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 each October 25. Thus, any insurer listed in the 
    appendices as of the date of the most recent final rule must file a 
    report by the following October 25, and by each succeeding October 25, 
    absent a further amendment removing the insurer's name from the 
    appendices.
    
    Notice of Proposed Rulemaking
    
    1. Insurers of Passenger Motor Vehicles
    
        Based on the 1994 calendar year A.M. Best data for market shares, 
    NHTSA proposes to amend the list in Appendix A of insurers which must 
    report because each had at least one percent of the motor vehicle 
    insurance premiums on a national basis. The list was last amended in a 
    notice published on August 13, 1996 (See 61 FR 41985). One company, 
    Allmerica Property and Casualty Company erroneously included in the 
    August 1996 listing, is proposed to be removed from Appendix A.
        Each of the 18 insurers listed in Appendix A of this notice would 
    be required to file a report not later than October 25, 1997, setting 
    forth the information required by Part 544 for each State in which it 
    did business in the 1994 calendar year. As long as those 18 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 those insurers that would be required to report 
    for particular States for calendar year 1994, because each insurer had 
    a 10 percent or greater market share of motor vehicle premiums in those 
    States. Based on the 1994 calendar year A.M. Best data for market 
    shares, it is proposed that Amica Mutual Insurance Company, reporting 
    on its activities in the State of Rhode Island be removed from Appendix 
    B. One company, Integon Corporate Group, that was not listed in 
    Appendix B, is proposed to be added.
        The 12 insurers listed in Appendix B of this notice would be 
    required to report on their calendar year 1994 activities in every 
    State in which they had a 10 percent or greater market share. These 
    reports must be filed no later than October 25, 1997, and set forth the 
    information required by Part 544. As long as those 12 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
    
        Based on information in Automotive Fleet Magazine and Business 
    Travel News for 1994, the most recent year for which data are 
    available, NHTSA is proposing several changes in Appendix C. As 
    indicated above, that appendix lists rental and leasing companies 
    required to file reports. Based on the data reported in the above 
    mentioned publications, it is proposed that two rental and leasing 
    companies, ARI (Automotive Rentals, Inc.) and A T & T Automotive 
    Services, Inc., be included in Appendix C. Accordingly, each of the 15 
    companies (including franchisees and licensees) listed in this notice 
    in Appendix C would be required to file reports for calendar year 1994 
    no later than October 25, 1997, and set forth the information required 
    by Part 544. As long as those 15 companies 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.
        NHTSA notes that on July 5, 1994, the Cost Savings Act (including 
    Title VI--Theft Prevention) was revised and codified ``without 
    substantive change.'' The passenger motor vehicle theft insurers' 
    reporting provisions, formerly at 15 U.S.C. 2032 are now at 49 U.S.C. 
    33112. In this NPRM, NHTSA proposes to make minor technical amendments 
    to make Part 544 reflect its changed statutory authority.
    
    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 the action not to be ``significant'' within the meaning of 
    the Department of Transportation's regulatory policies and procedures. 
    This proposed 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 proposed rule, reflecting more 
    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 cost estimates in 
    the 1987 final regulatory evaluation, the agency estimates that the 
    cost of compliance will be about $50,000 for any insurer that is added 
    to Appendix A, about $20,000 for any insurer added to Appendix B, and 
    about $5,770 for any insurer added to Appendix C. If this proposed rule 
    is made final, for Appendix A, the agency would remove one insurer; for 
    Appendix B, the agency would remove one insurer and add one insurer; 
    and for Appendix C, the agency would add two additional companies. The 
    agency therefore estimates that the net effect of this proposal, if 
    made final, would be a cost decrease to insurers, as a group of 
    approximately $38,460.
        Interested persons may wish to examine the 1987 final regulatory 
    evaluation. Copies of that evaluation have been 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, S.W., Washington, DC 20590, or by calling (202) 366-4949.
    
    2. Paperwork Reduction Act
    
        The information collection requirements in this proposed rule have 
    been submitted to 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 was assigned OMB 
    Control Number 2127-0547 (``Insurer Reporting Requirements'') and was 
    approved for use through October 31, 1996. The agency has begun the 
    process of seeking reinstatement of OMB's approval of the collection of 
    information. It expects that process to be complete well before October 
    25, 1997, when the next reports are due. The agency will publish a 
    Federal Register notice with the control number when it receives notice 
    from OMB that it has approved the requirement.
    
    3. Regulatory Flexibility Act
    
        The agency has also considered the effects of this rulemaking under 
    the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.). I certify 
    that this proposed rule would 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 to be included on 
    appendices A, B, or C would be 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 one percent of the total 
    premiums for all forms of motor vehicle insurance issued
    
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    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 in accordance with the principles and 
    criteria contained in Executive Order 12612, and it has been determined 
    that the proposed 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 proposed rule and 
    determined that it would not have a significant impact on the quality 
    of the human environment.
        Interested persons are invited to submit comments on the proposal. 
    It is requested but not required that 10 copies of the comments be 
    submitted. All comments must not exceed 15 pages in length (49 CFR 
    553.21). Necessary attachments may be appended to these submissions 
    without regard to the 15 page limit. This limitation is intended to 
    encourage commenters to detail their primary arguments in a concise 
    fashion.
        If a commenter wishes to submit certain information under a claim 
    of confidentiality, three copies of the complete submission, including 
    purportedly confidential business information, should be submitted to 
    the Chief Counsel, NHTSA, at the street address given above, and seven 
    copies from which the purportedly confidential information has been 
    deleted should be accompanied by cover letter setting forth the 
    information specified in the agency's confidential business information 
    regulation (49 CFR Part 512).
        All comments received before the close of business on the comment 
    closing date indicated above for the proposal will be considered, and 
    will be available for examination in the docket at the above address 
    both before and after the date. To the extent possible, comments filed 
    after the closing date will also be considered. Comments received too 
    late for consideration in regard to the final rule will be considered 
    as suggestions for further rulemaking action. Comments on the proposal 
    will be available for inspection in the docket. NHTSA will continue to 
    file relevant information as it becomes available in the docket after 
    the closing date, and it is recommended that interested persons 
    continue to examine the docket for new material.
        Those persons desiring to be notified upon receipt of their 
    comments in the rules docket should enclose a self-addressed, stamped 
    postcard in the envelope with their comments. Upon receiving the 
    comments, the docket supervisor will return the postcard by mail.
    
    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 proposed to 
    be amended as follows:
    
    PART 544--[AMENDED]
    
        1. The authority citation for part 544 would be revised to read as 
    follows:
    
        Authority: 49 U.S.C. 33112; delegation of authority at 49 CFR 
    1.50.
        2. Section 544.2 would be revised to read as follows:
    
    
    Sec. 544.2  Purpose.
    
        The purpose of the reporting requirements in this part is to aid in 
    implementing and evaluating the provisions of 49 U.S.C. chapter 331 
    Theft Prevention to prevent or discourage the theft of motor vehicles, 
    to prevent or discourage the sale or distribution in interstate 
    commerce of used parts removed from stolen motor vehicles, and to help 
    reduce the cost to consumers of comprehensive insurance coverage for 
    motor vehicles.
    
    
    Sec. 544.4  [Amended]
    
        3. Paragraph (a) of Sec. 544.4 would be revised to read as follows:
    
    
    Sec. 544.4  Definitions.
    
        (a) Statutory terms. All terms defined in 49 U.S.C. 32101 and 33112 
    are used in accordance with their statutory meanings unless otherwise 
    defined in paragraph (b) of this section.
    * * * * *
    
    
    Sec. 544.5  [Amended]
    
        4. Paragraph (a) of Sec. 544.5 would be 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 not later than October 25, beginning on October 25, 1986. This 
    report shall contain the information required by Sec. 544.6 for the 
    calendar year three years previous to the year in which the report is 
    filed (e.g., the report due by October 25, 1997 shall contain the 
    required information for the 1994 calendar year).
    * * * * *
        5. Appendix A to Part 544 would be 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
    
    Aetna Life & Casualty Group
    Allstate Insurance Group
    American Family Group
    American International Group
    California State Auto Association
    CNA Insurance Companies
    Farmers Insurance Group
    Geico Corporation Group
    ITT Hartford Insurance Group
    Liberty Mutual Group
    Metropolitan Group
    Nationwide Group
    Progressive Group
    Prudential of America Group
    Safeco Insurance Companies
    State Farm Group
    Travelers Insurance Group
    USAA Group
    
        6. Appendix B to Part 544 would be revised to read as follows:
    
    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 (Michigan)
    Commerce Group, Inc. (Massachusetts)
    Commercial Union Insurance Companies (Maine)
    Concord Group Insurance Companies (Vermont)
    Erie Insurance Group (Pennsylvania)
    Integon Corporate Group ``
    Kentucky Farm Bureau Group (Kentucky)
    Nodak Mutual Insurance Company (North Dakota)
    Southern Farm Bureau Casualty Group (Arkansas, Mississippi)
    Tennessee Farmers Companies (Tennessee)
    
        7. Appendix C to Part 544 would be 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.) \1\
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        \1\ Indicates a newly listed company which must file a report 
    beginning with the report due on October 25, 1997.
    
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    A T & T Automotive Services, Inc.\1\
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        \1\ Indicates a newly listed company which must file a report 
    beginning with the report due on October 25, 1997.
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    Avis, Inc.
    Budget Rent-A-Car Corporation
    Citicorp Bankers Leasing Corporation
    Dollar Rent-A-Car Systems, Inc.
    Donlen Corporation
    Hertz Rent-A-Car Division (subsidiary of Hertz Corporation)
    Lease Plan International
    National Car Rental System, Inc.
    Penske Truck Leasing Company
    Ryder System, Inc. (Both rental and leasing operations)
    U-Haul International, Inc. (Subsidiary of AMERCO)
    USL Capital Fleet Services
    
        Issued on: February 18, 1997.
    L. Robert Shelton,
    Associate Administrator for Safety Performance Standards.
    [FR Doc. 97-4355 Filed 2-21-97; 8:45 am]
    BILLING CODE 4910-59-P
    
    
    

Document Information

Published:
02/24/1997
Department:
National Highway Traffic Safety Administration
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking.
Document Number:
97-4355
Dates:
Comments on this proposed rule must be received by this agency not later than April 25, 1997. If this rule is made final, insurers listed in the appendices would be required to submit reports beginning with the one due October 25, 1997.
Pages:
8206-8209 (4 pages)
Docket Numbers:
Docket No. 96-130, Notice 01
RINs:
2127-AG56: Insurer Reporting Requirements for October 1997
RIN Links:
https://www.federalregister.gov/regulations/2127-AG56/insurer-reporting-requirements-for-october-1997
PDF File:
97-4355.pdf
CFR: (3)
49 CFR 544.2
49 CFR 544.4
49 CFR 544.5