[Federal Register Volume 63, Number 172 (Friday, September 4, 1998)]
[Proposed Rules]
[Pages 47217-47218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23908]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
[MARAD 98-4395]
46 CFR Part 249
RIN No. 2133-AB 36
Approval of Underwriters for Marine Hull Insurance
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Advance Notice of Proposed Rulemaking; request for comments.
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SUMMARY: The Maritime Administration (MARAD) is soliciting comments
from interested persons concerning the need to amend the existing
regulations governing the placement of marine hull insurance on
subsidized and Title XI program vessels. The existing regulations were
promulgated in 1988 and provided, among other things, the criteria and
procedures for certain foreign underwriters to participate in the
writing of hull insurance on MARAD program vessels.
DATES: Comments are requested by October 5, 1998.
ADDRESSES: Signed written comments should refer to the docket number
that appears at the top of this document and must be submitted to the
Docket Clerk, U.S. DOT Dockets, Room PL-401, 400 Seventh Street, SW,
Washington, DC 20590. All comments received will be available for
examination at the above address between 10 a.m. and 5 p.m., e.t.
Monday through Friday, except Federal Holidays. An electronic version
of this document is available on the World Wide Web at http:/
dms.dot.gov.
FOR FURTHER INFORMATION CONTACT: Edmond J. Fitzgerald, Director, Office
of Subsidy and Insurance, Maritime Administration, Washington DC 20590.
Telephone 202/366-2400.
SUPPLEMENTARY INFORMATION: The 1988 explanation of the final rulemaking
(53 FR 23119) provided in part that:
Members of the Institute of London Underwriters (ILU) would
remain eligible subject to prescribed trust fund and limitation on
risk requirements. On the basis of a comment by one American
carrier, the final rule specifically reserves MARAD's right to
review this eligibility at any time.
It has come to MARAD's attention that the ILU and another London based
insurance organization, the London International Insurance and
Reinsurance Market Association (LIRMA) have voted to merge their two
organizations in the near future. The new organization will be called
the International Underwriters Association (IUA) of London. MARAD's
[[Page 47218]]
Director, Office of Marine Insurance had discussions with the incoming
chairman of the IUA and the chairman indicated that the new
organization will not have the same eligibility criteria as the ILU or
any internal oversight activities. In view of this, MARAD is seeking
comments concerning how to deal with existing ILU member companies
after the merger. Will it be necessary to qualify ILU member companies
on an individual ``ad hoc'' basis after the merger is implemented?
MARAD has a number of questions it would like to receive comment on:
(1) Should companies who were in the ILU and approved to write
insurance on MARAD program vessels maintain their eligibility for some
period, say a year after merger, while they are reviewed on an
individual basis?
(2) Should ILU member companies (post merger) be subject to the
same requirements of ``Other Foreign Underwriters'' under section
249.5(c) Eligibility criteria?
(3) If an ILU member company has been previously approved under
249.5(c), in the French or Scandinavian market for example, should that
eligibility be governing?
(4) Should ILU member companies appearing on the Quarterly Listing
of Alien Insurers compiled by the National Association of Insurance
Commissioners be eligible for MARAD underwriting provided they remain
in good standing and remain on this list?
(5) If an ILU member company is the subsidiary or affiliate of a
company that is approved under Section 249.5(c), should it have the
benefit of that approval if a satisfactory parent company or similar
guarantee is provided?
(6) Any other aspect of this issue.
By Order of the Maritime Administrator.
Dated: September 1, 1998.
Joel C. Richard,
Secretary.
[FR Doc. 98-23908 Filed 9-3-98; 8:45 am]
BILLING CODE 4910-81-P
