Federal Register/Vol. 71, No. 171/Tuesday, September 5, 2006
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Federal Register / Vol. 71, No. 171 / Tuesday, September 5, 2006 / Rules and Regulations 52291 DEPARTMENT OF TRANSPORTATION percent or more of total premiums each spring. The agency uses the data to written within any one state; and determine the insurers’ market shares National Highway Traffic Safety (3) Rental and leasing companies with nationally and in each state. Administration a fleet of 20 or more vehicles not covered by theft insurance policies B. Self-Insured Rental and Leasing 49 CFR Part 544 issued by insurers of motor vehicles, Companies other than any governmental entity. In addition, upon making certain [Docket No.: NHTSA–2006–24175] Pursuant to its statutory exemption determinations, NHTSA grants RIN 2127–AJ88 authority, the agency exempted certain exemptions to self-insurers, i.e., any passenger motor vehicle insurers from person who has a fleet of 20 or more Insurer Reporting Requirements; List the reporting requirements. motor vehicles (other than any of Insurers Required To File Reports governmental entity) used for rental or A. Small Insurers of Passenger Motor lease whose vehicles are not covered by AGENCY: National Highway Traffic Vehicles theft insurance policies issued by Safety Administration (NHTSA), Section 33112(f)(2) provides that the Department of Transportation (DOT). insurers of passenger motor vehicles, 49 agency shall exempt small insurers of U.S.C. 33112(b)(1) and (f). Under 49 ACTION: Final rule. passenger motor vehicles if NHTSA U.S.C. 33112(e)(1) and (2), NHTSA may SUMMARY: This final rule amends finds that such exemptions will not exempt a self-insurer from reporting, if regulations on insurer reporting significantly affect the validity or the agency determines: requirements. The appendices list those usefulness of the information in the (1) The cost of preparing and passenger motor vehicle insurers that reports, either nationally or on a state- furnishing such reports is excessive in are required to file reports on their by-state basis. The term ‘‘small insurer’’ relation to the size of the business of the motor vehicle theft loss experiences. An is defined, in Section 33112(f)(1)(A) and insurer; and 33112(e)(1) and (2), (2) The insurer’s report will not insurer included in any of these (B), as an insurer whose premiums for significantly contribute to carrying out appendices must file three copies of its motor vehicle insurance issued directly the purposes of Chapter 331. report for the 2003 calendar year before or through an affiliate, including pooling arrangements established under In a final rule published June 22, 1990 October 25, 2006. If the passenger motor (55 FR 25606), the agency granted a vehicle insurers remain listed, they state law or regulation for the issuance of motor vehicle insurance, account for class exemption to all companies that must submit reports by each subsequent rent or lease fewer than 50,000 vehicles, October 25. less than 1 percent of the total premiums for all forms of motor vehicle because it believed that the largest DATES: This final rule becomes effective insurance issued by insurers within the companies’ reports sufficiently on November 6, 2006. Insurers listed in United States. However, that section represent the theft experience of rental the appendices are required to submit also stipulates that if an insurance and leasing companies. NHTSA reports before October 25, 2006. company satisfies this definition of a concluded that smaller rental and FOR FURTHER INFORMATION CONTACT: ‘‘small insurer,’’ but accounts for 10 leasing companies’ reports do not Rosalind Proctor, Office of International percent or more of the total premiums significantly contribute to carrying out Vehicle, Fuel Economy and Consumer for all motor vehicle insurance issued in NHTSA’s statutory obligations and that Standards, NHTSA, 400 Seventh Street, a particular state, the insurer must exempting such companies will relieve SW., Washington, DC 20590, by report about its operations in that state. an unnecessary burden on them. As a electronic mail to In the final rule establishing the result of the June 1990 final rule, the [email protected]. Ms. Proctor’s insurer reports requirement (52 FR 59; agency added Appendix C, consisting of telephone number is (202) 366–0846. January 2, 1987), 49 CFR part 544, an annually updated list of the self- Her fax number is (202) 493–2290. NHTSA exercised its exemption insurers subject to part 544. Following SUPPLEMENTARY INFORMATION: authority by listing in Appendix A each the same approach as in Appendix A, NHTSA included, in Appendix C, each I. Background insurer that must report because it had at least 1 percent of the motor vehicle of the self-insurers subject to reporting Pursuant to 49 U.S.C. 33112, Insurer insurance premiums nationally. Listing instead of the self-insurers which are reports and information, NHTSA the insurers subject to reporting, instead exempted. NHTSA updates Appendix C requires certain passenger motor vehicle of each insurer exempted from reporting based primarily on information from insurers to file an annual report with the because it had less than 1 percent of the Automotive Fleet Magazine and Auto agency. Each insurer’s report includes premiums nationally, is Rental News.2 information about thefts and recoveries administratively simpler since the of motor vehicles, the rating rules used C. When a Listed Insurer Must File a former group is much smaller than the Report by the insurer to establish premiums for latter. In Appendix B, NHTSA lists comprehensive coverage, the actions those insurers required to report for Under part 544, as long as an insurer taken by the insurer to reduce such particular states because each insurer is listed, it must file reports on or before premiums, and the actions taken by the had a 10 percent or greater market share October 25 of each year. Thus, any insurer to reduce or deter theft. of motor vehicle premiums in those insurer listed in the appendices must Pursuant to 49 U.S.C. Section 33112(f), states. In the January 1987 final rule, the file a report before October 25, and by the following insurers are subject to the agency stated that it would update each succeeding October 25, absent an reporting requirements: Appendices A and B annually. NHTSA amendment removing the insurer’s (1) Issuers of motor vehicle insurance updates the appendices based on data name from the appendices. policies whose total premiums account voluntarily provided by insurance for 1 percent or more of the total U.S.C. 33112(i) authorizes NHTSA to consult with companies to A.M. Best, which A.M. public and private organizations as necessary. premiums of motor vehicle insurance 1 Best publishes in its State/Line Report 2 Automotive Fleet Magazine and Auto Rental issued within the United States; News are publications that provide information on (2) Issuers of motor vehicle insurance 1 A.M. Best Company is a well-recognized source the size of fleets and market share of rental and policies whose premiums account for 10 of insurance company ratings and information. 49 leasing companies. VerDate Aug<31>2005 13:26 Sep 01, 2006 Jkt 208001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\05SER1.SGM 05SER1 erjones on PRODPC60 with RULES 52292 Federal Register / Vol. 71, No. 171 / Tuesday, September 5, 2006 / Rules and Regulations II. Notice of Proposed Rulemaking Vanguard Car Rental USA.5 Each of the insurer to include ‘‘a person (except a 13 companies (including franchisees governmental authority) having a fleet 1. Insurers of Passenger Motor Vehicles and licensees) listed in Appendix C are of at least 20 motor vehicles that are On April 3, 2006, NHTSA published required to file reports for calendar year used primarily for rental or lease and a notice of proposed rulemaking 2003 no later than October 25, 2006, and that are not covered by a theft insurance (NPRM) to update the list of insurers in set forth the information required by policy issued by an insurer of passenger Appendices A, B, and, C required to file part 544. As long as those 13 companies motor vehicles’’.6 reports (71 FR 16541). Appendix A lists remain listed, they would be required to Since all of these companies either insurers that must report because each submit reports before each subsequent require its lessees to provide the had 1 percent of the motor vehicle October 25 for the calendar year ending insurance for its vehicles, or do not self- insurance premiums on a national basis. slightly less than 3 years before. insure 50,000 or more vehicles in its The list was last amended in a final rule leasing fleet, none of them meet the published on July 25, 2005 (70 FR Public Comments on Final criteria the agency uses to determine 42505). Based on the 2003 calendar year Determination that an insurer should be included in market share data from A.M. Best, Insurers of Passenger Motor Vehicles Appendix C. Therefore, the agency NHTSA proposed to remove California determines that each of these six In response to the NPRM, the agency State Auto Association from Appendix companies should be removed from received one formal comment. In a letter A. Appendix C in the final rule. Each of the 18 insurers listed in dated April 27, 2006, Automotive The agency received no comments in Appendix A are required to file a report Resources International/Automotive response to the NPRM for Appendices A before October 25, 2006, setting forth Rentals, Inc. (ARI), requested the agency and B. Accordingly, this final rule the information required by Part 544 for to remove its name from the list of adopts the proposed changes to each State in which it did business in insurers required to meet the insurer Appendix A and B.