96-20569. Insurer Reporting Requirements; List of Insurers Required to File Reports  

  • [Federal Register Volume 61, Number 157 (Tuesday, August 13, 1996)]
    [Rules and Regulations]
    [Pages 41985-41987]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-20569]
    
    
          
          
    
    [[Page 41985]]
    
    DEPARTMENT OF TRANSPORTATION
    
    National Highway Traffic Safety Administration
    
    49 CFR Part 544
    
    [Docket No. 96-19; Notice 02]
    RIN 2127-AF92
    
    
    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 the list 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, pursuant to 49 
    U.S.C. Section 33112. Each insurer listed must file a report for the 
    1993 calendar year not later than October 25, 1996. Further, as long as 
    an insurer remains listed, it must submit reports on each subsequent 
    October 25.
    
    DATES: The final rule on this subject is effective August 13, 1996.
        Reporting Date: Insurers listed in the appendices are required to 
    submit reports on their calendar year 1993 experience on or before 
    October 25, 1996. Previously listed insurers whose names are removed by 
    this notice need not submit reports for that year. Insurers newly 
    listed in this final rule must submit their reports for calendar year 
    1993 on or before October 25, 1996. Under Part 544, as long as an 
    insurer is listed, it must file reports each October 25. Thus, any 
    insurer listed in the appendices as of the date of the most recent 
    final rule must file a report on the following October 25, and on each 
    succeeding October 25, absent a further amendment removing the 
    insurer's name from the appendices.
    
    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 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 
    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 NHTSA shall exempt small insurers 
    of passenger motor vehicles if it 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 provided 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 establishing Part 544 (52 FR 
    59, January 2, 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(e)(1) and (2). 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.
        Conversely, NHTSA may not exempt a self insurer solely based on 
    meeting the definition of insurer as defined in Section 33112(b)(1).
        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 the relatively numerous self-
    insurers which are exempted. NHTSA updates
    
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    Appendix C based primarily on information from the publications 
    Automotive Fleet Magazine and Business Travel News.
    
    Notice of Proposed Rulemaking
    
    (1)  Insurers of Passenger Motor Vehicles
    
        On April 8, 1996, NHTSA published a notice of proposed rulemaking 
    (NPRM) to update the list of insurers in Appendices A, B, and C 
    required to file reports (61 FR 15443). Based on the 1993 calendar year 
    market share data provided by A.M. Best, NHTSA proposed to amend the 
    listing in Appendix A of insurers which must report because each had 
    written at least one percent of the motor vehicle insurance premiums on 
    a national basis. The list was last amended in a notice published on 
    June 27, 1995 (See 60 FR 33145). One company, General ACC Group, 
    included in the June 1995 listing, was proposed to be removed from 
    Appendix A. Two companies, Allmerica Property and Casualty Companies 
    and Metropolitan Group, that were not listed in Appendix A, were 
    proposed to be added.
        Each of the 19 insurers listed in Appendix A of this notice is 
    required to file a report not later than October 25, 1996, setting 
    forth the information required by Part 544 for each State in which it 
    did business in the 1993 calendar year. As long as those 19 insurers 
    remain listed, they are required to submit reports on each subsequent 
    October 25 for the calendar year ending slightly less than 3 years 
    before.
        Appendix B lists those insurers that are required to report for 
    particular States for the calendar year 1993 because each insurer had a 
    10 percent or greater market share of motor vehicle premiums in those 
    States. Based on the 1993 calendar year A.M. Best data for market 
    shares, it was proposed that one company, Nodak Mutual Insurance 
    Company, reporting on its activities in the State of North Dakota, be 
    added to Appendix B.
        The 12 insurers listed in Appendix B of this notice would be 
    required to report on their 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, 1996, 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 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 1993, the most recent year that data are available, 
    NHTSA proposed several changes in Appendix C. Based on the data 
    reported in the above mentioned publications, NHTSA proposed that the 
    American International Rent-A-Car Corp./ANSA be removed from Appendix 
    C. The agency also proposed that four additional rental and leasing 
    companies, Citicorp Bankers Leasing Corporation, Donlen Corporation, 
    Lease Plan International, and USL Capital Fleet Services, be included 
    in Appendix C. Accordingly, each of the 13 companies (including 
    franchisees and licensees) listed in this notice in Appendix C would be 
    required to file reports for the calendar year 1993 no later than 
    October 25, 1996, and set forth the information required by Part 544. 
    As long as those 13 companies remain listed, they would be required to 
    submit reports on 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. This final rule amends part 544 to reflect the changed statutory 
    authority.
    
    Public Comments and Final Determination
    
        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 final rule and has determined 
    the action not to be ``significant'' within the meaning of the 
    Department of Transportation's regulatory policy 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 expressly required to file reports.
        NHTSA does not believe that this 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. In this final rule, 
    for Appendix A, the agency removed one insurer and added two insurers; 
    for Appendix B, the agency added one insurer; and for Appendix C, the 
    agency removed one company and included four additional companies. The 
    agency therefore estimates that the net effect of this final rule will 
    be a cost increase to insurers, as a group, of less than $100,000.
        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 final 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 has been assigned 
    OMB Control Number 2127-0547 (``Insurer Reporting Requirements'') and 
    has been approved for use through October 31, 1996.
    
    (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 final 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 by insurers 
    within the United States, or any insurer whose premiums within any 
    State,
    
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    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 insurers 
    meeting 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 this 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, 
    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 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 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 33112; delegation of authority at 49 CFR 
    1.50.
    
        2. Section 544.2  Purpose is revised to read as follows:
    
    
    Sec. 544.2  Purpose.
    
        The purpose of these reporting requirements 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.
        3. Paragraph (a) of Sec. 544.4  Definitions is revised to read as 
    follows:
    
    
    Sec. 544.4  Definitions.
    
        (a) Statutory terms. All terms defined in 49 U.S.C. 33101 and 33112 
    are used in accordance with their statutory meanings unless otherwise 
    defined in paragraph (b) of this section.
    * * * * *
        4. 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 not later than 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 three years previous to the year in which 
    the report is filed (e.g., the report due by October 25, 1996 shall 
    contain the required information for the 1993 calendar year).
    * * * * *
        5. 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
    
    Aetna Life & Casualty Group
    Allmerica Property & Casualty Companies \1\
    ---------------------------------------------------------------------------
    
        \1\ Indicates a newly listed company which must file a report 
    beginning with the report due October 25, 1996
    ---------------------------------------------------------------------------
    
    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 \1\
    Nationwide Group
    Safeco Insurance Companies
    Progressive Group
    Prudential of America Group State Farm Group
    Travelers Insurance Group
    USAA Group
    
        6. Appendix B to Part 544 is 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)
    Amica Mutual Insurance Company (Rhode Island)
    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)
    Kentucky Farm Bureau Group (Kentucky)
    Nodak Mutual Insurance Company (North Dakota) \1\
    Southern Farm Bureau Casualty Group (Arkansas, Mississippi)
    Tennessee Farmers Companies (Tennessee)
    
        7. 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.
    Avis, Inc.
    Budget Rent-A-Car Corporation
    Citicorp Bankers Leasing Corporation \1\
    Dollar Rent-A-Car Systems, Inc.
    Donlen Corporation \1\
    Hertz Rent-A-Car Division (subsidiary of Hertz Corporation)
    Lease Plan International \1\
    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 \1\
    
        \1\ Indicates a newly listed company which must file a report 
    beginning with the report due October 25, 1996.
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        Issued on: August 7, 1996.
    Barry Felrice,
    Associate Administrator for Safety Performance Standards.
    [FR Doc. 96-20569 Filed 8-12-96; 8:45 am]
    BILLING CODE 4910-59-P
    
    
    

Document Information

Effective Date:
8/13/1996
Published:
08/13/1996
Department:
National Highway Traffic Safety Administration
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-20569
Dates:
The final rule on this subject is effective August 13, 1996.
Pages:
41985-41987 (3 pages)
Docket Numbers:
Docket No. 96-19, Notice 02
RINs:
2127-AF92: Insurer Reporting Requirements for October 1996
RIN Links:
https://www.federalregister.gov/regulations/2127-AF92/insurer-reporting-requirements-for-october-1996
PDF File:
96-20569.pdf
CFR: (3)
49 CFR 544.2
49 CFR 544.4
49 CFR 544.5