Federal Register / Vol. 76, No. 134 / Wednesday, July 13, 2011 / Rules and Regulations 41135 

[FR Doc. 2011–17467 Filed 7–12–11; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 180 

[EPA–HQ–OPP–2011–0327; FRL–8878–4] 

2-Propenoic acid, 2-methyl-, 

phenylmethyl ester, polymer with 2- 

propenoic acid and sodium 2-methyl-2- 

[(1-oxo-2-propen-1-yl)amino]-1- 

propanesulfonate (1:1), 

peroxydisulfuric acid ([HO)S(O)2]202) 

sodium salt (1:2)-initiated; Tolerance 

Exemption 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: This regulation establishes an 

exemption from the requirement of a 

tolerance for residues of 2-Propenoic 

acid, 2-methyl-, phenylmethyl ester, 

polymer with 2-propenoic acid and 

sodium 2-methyl-2-[(1-oxo-2-propen-1- 

yl)amino]-1-propanesulfonate (1:1), 

peroxydisulfuric acid ([HO)S(O)2]202) 

sodium salt (1:2)-initiated (also known 

here as: ‘‘the Polymer’’); when used as 

an inert ingredient in a pesticide 

chemical formulation under 40 CFR 

180.960. Akzo Nobel Surface Chemistry 

LLC, 909 Mueller Avenue, Chattanooga, 

TN 37406 submitted a petition to EPA 

under the Federal Food, Drug, and 

Cosmetic Act (FFDCA), requesting an 

exemption from the requirement of a 

tolerance. This regulation eliminates the 

need to establish a maximum 

permissible level for residues of ‘‘the 

Polymer’’ on food or feed commodities. 

DATES: This regulation is effective July 

13, 2011. Objections and requests for 

hearings must be received on or before 

September 12, 2011, and must be filed 

in accordance with the instructions 

provided in 40 CFR part 178 (see also 

Unit I.C. of the SUPPLEMENTARY

INFORMATION). 

ADDRESSES: EPA has established a 

docket for this action under docket 

identification (ID) number EPA–HQ– 

OPP–2011–0327. All documents in the 

docket are listed in the docket index 

available at http://www.regulations.gov. 

Although listed in the index, some 

information is not publicly available, 

e.g., Confidential Business Information 

(CBI) or other information whose 

disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, is not placed on 

the Internet and will be publicly 

available only in hard copy form. 

Publicly available docket materials are 

available in the electronic docket at 

http://www.regulations.gov, or, if only 

available in hard copy, at the OPP 

Regulatory Public Docket in Rm. S– 

4400, One Potomac Yard (South Bldg.), 

2777 S. Crystal Dr., Arlington, VA. The 

Docket Facility is open from 8:30 a.m. 

to 4 p.m., Monday through Friday, 

excluding legal holidays. The Docket 

Facility telephone number is (703) 305– 

5805. 

FOR FURTHER INFORMATION CONTACT: 

Mark Dow, Registration Division 

(7505P), Office of Pesticide Programs, 

Environmental Protection Agency, 1200 

Pennsylvania Ave., NW., Washington, 

DC 20460–0001; telephone number: 

(703) 305–5533; e-mail address: 

dow.mark@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. General Information 

A. Does this action apply to me? 

You may be potentially affected by 

this action if you are an agricultural 

producer, food manufacturer, or 

pesticide manufacturer. Potentially 

affected entities may include, but are 

not limited to: 

• Crop production (NAICS code 111). 

• Animal production (NAICS code 

112). 

• Food manufacturing (NAICS code 

311). 

• Pesticide manufacturing (NAICS 

code 32532). 

This listing is not intended to be 

exhaustive, but rather provides a guide 

for readers regarding entities likely to be 

affected by this action. Other types of 

entities not listed in this unit could also 

be affected. The North American 

Industrial Classification System 

(NAICS) codes have been provided to 

assist you and others in determining 

whether this action might apply to 

certain entities. If you have any 

questions regarding the applicability of 

this action to a particular entity, consult 

the person listed under FOR FURTHER

INFORMATION CONTACT. 

B. How can I get electronic access to 

other related information? 

You may access a frequently updated 

electronic version of 40 CFR part 180 

through the Government Printing 

Office’s e-CFR site at http:// 

ecfr.gpoaccess.gov/cgi/t/text/textidx?&c=ecfr&tpl=/ecfrbrowse/Title40/ 

40tab_02.tpl. 

C. Can I file an objection or hearing 

request? 

Under FFDCA section 408(g), 21 

U.S.C. 346a, any person may file an 

objection to any aspect of this regulation 

and may also request a hearing on those 

objections. You must file your objection 

or request a hearing on this regulation 

in accordance with the instructions 

provided in 40 CFR part 178. To ensure 

proper receipt by EPA, you must 

identify docket ID number EPA–HQ– 

OPP–2011–0327 in the subject line on 

the first page of your submission. All 

objections and requests for a hearing 

must be in writing, and must be 

received by the Hearing Clerk on or 

before September 12, 2011. Addresses 

for mail and hand delivery of objections 

and hearing requests are provided in 40 

CFR 178.25(b). 

In addition to filing an objection or 

hearing request with the Hearing Clerk 

as described in 40 CFR part 178, please 

submit a copy of the filing that does not 

contain any CBI for inclusion in the 

public docket. Information not marked 

confidential pursuant to 40 CFR part 2 

may be disclosed publicly by EPA 

without prior notice. Submit a copy of 

your non-CBI objection or hearing 

request, identified by docket ID number 

EPA–HQ–OPP–2011–0327, by one of 

the following methods. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the on-line 

instructions for submitting comments. 

• Mail: Office of Pesticide Programs 

(OPP) Regulatory Public Docket (7502P), 

Environmental Protection Agency, 1200 

Pennsylvania Ave., NW., Washington, 

DC 20460–0001. 

• Delivery: OPP Regulatory Public 

Docket (7502P), Environmental 

Protection Agency, Rm. S–4400, One 

Potomac Yard (South Bldg.), 2777 S. 

Crystal Dr., Arlington, VA. Deliveries 

are only accepted during the Docket 

Facility’s normal hours of operation 

(8:30 a.m. to 4 p.m., Monday through 

Friday, excluding legal holidays). 

Special arrangements should be made 

for deliveries of boxed information. The 

Docket Facility telephone number is 

(703) 305–5805. 

II. Background and Statutory Findings 

In the Federal Register of April 20, 

2011 (76 FR 22069) (FRL–8869–7), EPA 

issued a notice pursuant to section 408 

of FFDCA, 21 U.S.C. 346a, announcing 

the receipt of a pesticide petition (PP 

1E7834) filed by Akzo Nobel Surface 

Chemistry LLC, 909 Mueller Avenue, 

Chattanooga, TN 37406. The petition 

requested that 40 CFR 180.960 be 

amended by establishing an exemption 

from the requirement of a tolerance for 

residues of 2-Propenoic acid, 2-methyl- 

,phenylmethyl ester, polymer with 2- 

propenoic acid and sodium 2-methyl-2- 

[(1-oxo-2-propen-1-yl)amino]-1- 

propanesulfonate (1:1), peroxydisulfuric 

acid ([HO)S(O)2]202) sodium salt (1:2)- 

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41136 Federal Register / Vol. 76, No. 134 / Wednesday, July 13, 2011 / Rules and Regulations 

initiated (CASRN 1246766–57–3). That 

notice included a summary of the 

petition prepared by the petitioner and 

solicited comments on the petitioner’s 

request. The Agency did not receive any 

comments. Section 408(c)(2)(A)(i) of 

FFDCA allows EPA to establish an 

exemption from the requirement for a 

tolerance (the legal limit for a pesticide 

chemical residue in or on a food) only 

if EPA determines that the exemption is 

‘‘safe.’’ Section 408(c)(2)(A)(ii) of 

FFDCA defines ‘‘safe’’ to mean that 

‘‘there is a reasonable certainty that no 

harm will result from aggregate 

exposure to the pesticide chemical 

residue, including all anticipated 

dietary exposures and all other 

exposures for which there is reliable 

information.’’ This includes exposure 

through drinking water and use in 

residential settings, but does not include 

occupational exposure. Section 

408(b)(2)(C) of FFDCA requires EPA to 

give special consideration to exposure 

of infants and children to the pesticide 

chemical residue in establishing an 

exemption from the requirement of a 

tolerance and to ‘‘ensure that there is a 

reasonable certainty that no harm will 

result to infants and children from 

aggregate exposure to the pesticide 

chemical residue * * *’’ and specifies 

factors EPA is to consider in 

establishing an exemption. 

III. Risk Assessment and Statutory 

Findings 

EPA establishes exemptions from the 

requirement of a tolerance only in those 

cases where it can be shown that the 

risks from aggregate exposure to 

pesticide chemical residues under 

reasonably foreseeable circumstances 

will pose no appreciable risks to human 

health. In order to determine the risks 

from aggregate exposure to pesticide 

inert ingredients, the Agency considers 

the toxicity of the inert in conjunction 

with possible exposure to residues of 

the inert ingredient through food, 

drinking water, and through other 

exposures that occur as a result of 

pesticide use in residential settings. If 

EPA is able to determine that a finite 

tolerance is not necessary to ensure that 

there is a reasonable certainty that no 

harm will result from aggregate 

exposure to the inert ingredient, an 

exemption from the requirement of a 

tolerance may be established. 

Consistent with FFDCA section 

408(b)(2)(D), EPA has reviewed the 

available scientific data and other 

relevant information in support of this 

action and considered its validity, 

completeness and reliability and the 

relationship of this information to 

human risk. EPA has also considered 

available information concerning the 

variability of the sensitivities of major 

identifiable subgroups of consumers, 

including infants and children. In the 

case of certain chemical substances that 

are defined as polymers, the Agency has 

established a set of criteria to identify 

categories of polymers expected to 

present minimal or no risk. The 

definition of a polymer is given in 40 

CFR 723.250(b) and the exclusion 

criteria for identifying these low-risk 

polymers are described in 40 CFR 

723.250(d). 2-Propenoic acid, 2-methyl- 

,phenylmethyl ester, polymer with 2- 

propenoic acid and sodium 2-methyl-2- 

[(1-oxo-2-propen-1-yl)amino]-1- 

propanesulfonate (1:1), peroxydisulfuric 

acid ([HO)S(O)2]202) sodium salt (1:2)- 

initiated conforms to the definition of a 

polymer given in 40 CFR 723.250(b) and 

meets the following criteria that are 

used to identify low-risk polymers. 

1. The polymer is not a cationic 

polymer nor is it reasonably anticipated 

to become a cationic polymer in a 

natural aquatic environment. 

2. The polymer does contain as an 

integral part of its composition the 

atomic elements carbon, hydrogen, and 

oxygen. 

3. The polymer does not contain as an 

integral part of its composition, except 

as impurities, any element other than 

those listed in 40 CFR 723.250(d)(2)(ii). 

4. The polymer is neither designed 

nor can it be reasonably anticipated to 

substantially degrade, decompose, or 

depolymerize. 

5. The polymer is manufactured or 

imported from monomers and/or 

reactants that are already included on 

the TSCA Chemical Substance 

Inventory or manufactured under an 

applicable TSCA section 5 exemption. 

6. The polymer is not a water 

absorbing polymer with a number 

average molecular weight (MW) greater 

than or equal to 10,000 daltons. 

Additionally, the polymer also meets 

as required the following exemption 

criteria specified in 40 CFR 723.250(e). 

7. The polymer’s number average MW 

is greater than 1,000 and less than 

10,000 daltons. The polymer contains 

less than 10% oligomeric material 

below MW 500 and less than 25% 

oligomeric material below MW 1,000, 

and the polymer does not contain any 

reactive functional groups. 

Thus, ‘‘the Polymer’’ meets the 

criteria for a polymer to be considered 

low risk under 40 CFR 723.250. Based 

on its conformance to the criteria in this 

unit, no mammalian toxicity is 

anticipated from dietary, inhalation, or 

dermal exposure to ‘‘the Polymer’’. 

IV. Aggregate Exposures 

For the purposes of assessing 

potential exposure under this 

exemption, EPA considered that 2- 

Propenoic acid, 2-methyl-, 

phenylmethyl ester, polymer with 2- 

propenoic acid and sodium 2-methyl-2- 

[(1-oxo-2-propen-1-yl)amino]-1- 

propanesulfonate (1:1), peroxydisulfuric 

acid ([HO)S(O)2]202) sodium salt (1:2)- 

initiated could be present in all raw and 

processed agricultural commodities and 

drinking water, and that nonoccupational non-dietary exposure was 

possible. The number average MW of 

‘‘the Polymer’’ is 1,000 daltons. 

Generally, a polymer of this size would 

be poorly absorbed through the intact 

gastrointestinal tract or through intact 

human skin. Since ‘‘the Polymer’’ 

conform to the criteria that identify a 

low-risk polymer, there are no concerns 

for risks associated with any potential 

exposure scenarios that are reasonably 

foreseeable. The Agency has determined 

that a tolerance is not necessary to 

protect the public health. 

V. Cumulative Effects From Substances 

With a Common Mechanism of Toxicity 

Section 408(b)(2)(D)(v) of FFDCA 

requires that, when considering whether 

to establish, modify, or revoke a 

tolerance, the Agency consider 

‘‘available information’’ concerning the 

cumulative effects of a particular 

pesticide’s residues and ‘‘other 

substances that have a common 

mechanism of toxicity.’’ 

EPA has not found ‘‘the Polymer’’ to 

share a common mechanism of toxicity 

with any other substances, and ‘‘the 

Polymer’’ does not appear to produce a 

toxic metabolite produced by other 

substances. For the purposes of this 

tolerance action, therefore, EPA has 

assumed that ‘‘the Polymer’’ does not 

have a common mechanism of toxicity 

with other substances. For information 

regarding EPA’s efforts to determine 

which chemicals have a common 

mechanism of toxicity and to evaluate 

the cumulative effects of such 

chemicals, see EPA’s Web site at 

http://www.epa.gov/pesticides/ 

cumulative. 

VI. Additional Safety Factor for the 

Protection of Infants and Children 

Section 408(b)(2)(C) of FFDCA 

provides that EPA shall apply an 

additional tenfold margin of safety for 

infants and children in the case of 

threshold effects to account for prenatal 

and postnatal toxicity and the 

completeness of the data base unless 

EPA concludes that a different margin of 

safety will be safe for infants and 

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Federal Register / Vol. 76, No. 134 / Wednesday, July 13, 2011 / Rules and Regulations 41137 

children. Due to the expected low 

toxicity of ‘‘the Polymer’’, EPA has not 

used a safety factor analysis to assess 

the risk. For the same reasons the 

additional tenfold safety factor is 

unnecessary. 

VII. Determination of Safety 

Based on the conformance to the 

criteria used to identify a low-risk 

polymer, EPA concludes that there is a 

reasonable certainty of no harm to the 

U.S. population, including infants and 

children, from aggregate exposure to 

residues of 2-Propenoic acid, 2-methyl- 

, phenylmethyl ester, polymer with 2- 

propenoic acid and sodium 2-methyl-2- 

[(1-oxo-2-propen-1-yl)amino]-1- 

propanesulfonate (1:1), peroxydisulfuric 

acid ([HO)S(O)2]202) sodium salt (1:2)- 

initiated. 

VIII. Other Considerations 

A. Analytical Enforcement Methodology 

An analytical method is not required 

for enforcement purposes since the 

Agency is establishing an exemption 

from the requirement of a tolerance 

without any numerical limitation. 

B. International Residue Limits 

In making its tolerance decisions, EPA 

seeks to harmonize U.S. tolerances with 

international standards whenever 

possible, consistent with U.S. food 

safety standards and agricultural 

practices. EPA considers the 

international maximum residue limits 

(MRLs) established by the Codex 

Alimentarius Commission (Codex), as 

required by FFDCA section 408(b)(4). 

The Codex Alimentarius is a joint U.N. 

Food and Agriculture Organization/ 

World Health Organization food 

standards program, and it is recognized 

as an international food safety 

standards-setting organization in trade 

agreements to which the United States 

is a party. EPA may establish a tolerance 

that is different from a Codex MRL; 

however, FFDCA section 408(b)(4) 

requires that EPA explain the reasons 

for departing from the Codex level. 

The Codex has not established a MRL 

for ‘‘the Polymer’’. 

IX. Conclusion 

Accordingly, EPA finds that 

exempting residues of 2-Propenoic acid, 

2-methyl-, phenylmethyl ester, polymer 

with 2-propenoic acid and sodium 2- 

methyl-2-[(1-oxo-2-propen-1-yl)amino]- 

1-propanesulfonate (1:1), 

peroxydisulfuric acid ([HO)S(O)2]202) 

sodium salt (1:2)-initiated from the 

requirement of a tolerance will be safe. 

X. Statutory and Executive Order 

Reviews 

This final rule establishes a tolerance 

under section 408(d) of FFDCA in 

response to a petition submitted to the 

Agency. The Office of Management and 

Budget (OMB) has exempted these rules 

from review under Executive Order 

12866, entitled Regulatory Planning and 

Review (58 FR 51735, October 4, 1993). 

Because this final rule has been 

exempted from review under Executive 

Order 12866, this final rule is not 

subject to Executive Order 13211, 

entitled Actions Concerning Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use (66 FR 28355, May 

22, 2001) or Executive Order 13045, 

entitled Protection of Children from 

Environmental Health Risks and Safety 

Risks (62 FR 19885, April 23, 1997). 

This final rule does not contain any 

information collections subject to OMB 

approval under the Paperwork 

Reduction Act (PRA), 44 U.S.C. 3501 et 

seq., nor does it involve any technical 

standards that would require Agency 

consideration of voluntary consensus 

standards pursuant to section 12(d) of 

the National Technology Transfer and 

Advancement Act of 1995 (NTTAA), 

Public Law 104–113, section 12(d) (15 

U.S.C. 272 note). 

Since tolerances and exemptions that 

are established on the basis of a petition 

under section 408(d) of FFDCA, such as 

the tolerance in this final rule, do not 

require the issuance of a proposed rule, 

the requirements of the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601 et 

seq.) do not apply. 

This final rule directly regulates 

growers, food processors, food handlers, 

and food retailers, not States or tribes, 

nor does this action alter the 

relationships or distribution of power 

and responsibilities established by 

Congress in the preemption provisions 

of section 408(n)(4) of FFDCA. As such, 

the Agency has determined that this 

action will not have a substantial direct 

effect on States or tribal governments, 

on the relationship between the national 

government and the States or tribal 

governments, or on the distribution of 

power and responsibilities among the 

various levels of government or between 

the Federal Government and Indian 

tribes, or otherwise have any unique 

impacts on local governments. Thus, the 

Agency has determined that Executive 

Order 13132, entitled Federalism (64 FR 

43255, August 10, 1999) and Executive 

Order 13175, entitled Consultation and 

Coordination with Indian Tribal 

Governments (65 FR 67249, November 

9, 2000) do not apply to this final rule. 

In addition, this final rule does not 

impose any enforceable duty or contain 

any unfunded mandate as described 

under Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA) (Pub. L. 

104–4). 

Although this action does not require 

any special considerations under 

Executive Order 12898, entitled Federal 

Actions to Address Environmental 

Justice in Minority Populations and 

Low-Income Populations (59 FR 7629, 

February 16, 1994), EPA seeks to 

achieve environmental justice, the fair 

treatment and meaningful involvement 

of any group, including minority and/or 

low-income populations, in the 

development, implementation, and 

enforcement of environmental laws, 

regulations, and policies. As such, to the 

extent that information is publicly 

available or was submitted in comments 

to EPA, the Agency considered whether 

groups or segments of the population, as 

a result of their location, cultural 

practices, or other factors, may have 

atypical or disproportionately high and 

adverse human health impacts or 

environmental effects from exposure to 

the pesticide discussed in this 

document, compared to the general 

population. 

XI. Congressional Review Act 

The Congressional Review Act, 5 

U.S.C. 801 et seq., generally provides 

that before a rule may take effect, the 

agency promulgating the rule must 

submit a rule report to each House of 

the Congress and to the Comptroller 

General of the United States. EPA will 

submit a report containing this rule and 

other required information to the U.S. 

Senate, the U.S. House of 

Representatives, and the Comptroller 

General of the United States prior to 

publication of this rule in the Federal 

Register. This rule is not a ‘‘major rule’’ 

as defined by 5 U.S.C. 804(2). 

List of Subjects in 40 CFR Part 180 

Environmental protection, 

Administrative practice and procedure, 

Agricultural commodities, Pesticides 

and pests, Reporting and recordkeeping 

requirements. 

Dated: June 27, 2011. 

Lois Rossi, 

Director, Registration Division, Office of 

Pesticide Programs. 

Therefore, 40 CFR chapter I is 

amended as follows: 

PART 180—[AMENDED] 

■ 1. The authority citation for part 180 

continues to read as follows: 

Authority: 21 U.S.C. 321(q), 346a and 371. 

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41138 Federal Register / Vol. 76, No. 134 / Wednesday, July 13, 2011 / Rules and Regulations 

1A.M. Best Company is a well-recognized source 

of insurance company ratings and information. 49 

■ 2. In § 180.960, the table is amended 

by adding alphabetically the following 

polymers to read as follows: 

§ 180.960 Polymers; exemptions from the 

requirement of a tolerance. 

* * * * * 

Polymer CAS No. 

*******

2-Propenoic acid, 2-methyl-, phenylmethyl ester, polymer with 2-propenoic acid and sodium 2-methyl-2-[(1-oxo-2- 

propen-1-yl)amino]-1-propanesulfonate (1:1), peroxydisulfuric acid ([HO)S(O)2]202) sodium salt (1:2)-initiated minimum number average molecular weight > 1,000 Daltons; maximum number average molecular weight 10,000 Daltons.

CASRN 1246766–57–3 

*******

[FR Doc. 2011–17391 Filed 7–12–11; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF TRANSPORTATION 

National Highway Traffic Safety 

Administration 

49 CFR Part 544 

[Docket No.: NHTSA–2011–0016] 

RIN 2127–AK90 

Insurer Reporting Requirements; List 

of Insurers Required To File Reports 

AGENCY: National Highway Traffic 

Safety Administration (NHTSA), 

Department of Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: This final rule amends 49 

CFR Part 544, Insurer Reporting 

Requirements. This Part specifies the 

requirements for annual insurer reports 

and lists in appendices 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 2008 calendar year before October 

25, 2011. If the passenger motor vehicle 

insurers remain listed, they must submit 

reports by each subsequent October 25. 

DATES: This final rule becomes effective 

on August 12, 2011. Insurers listed in 

the appendices are required to submit 

reports on or before October 25, 2011. If 

you wish to submit a petition for 

reconsideration of this rule, your 

petition must be received by August 29, 

2011. 

ADDRESSES: Petitions for reconsideration 

should refer to the docket number and 

be submitted to: Administrator, National 

Highway Traffic Safety Administration, 

1200 New Jersey Avenue, SE., West 

Building, Room W41–307, Washington, 

DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Carlita Ballard, Office of International 

Policy, Fuel Economy and Consumer 

Programs, NHTSA, 1200 New Jersey 

Avenue, SE., West Building, Room 

W43–439, Washington, DC 20590, by 

electronic mail to 

carlita.ballard@dot.gov. Ms. Ballard’s 

telephone number is (202) 366–5222. 

Her fax number is (202) 493–2990. 

SUPPLEMENTARY INFORMATION: 

I. 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. 

Pursuant to 49 U.S.C. Section 33112(f), 

the following insurers are subject to the 

reporting requirements: 

(1) 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) 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 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 stateby-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 (49 CFR 

part 544; 52 FR 59, January 2, 1987), 

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 1 publishes in its State/Line Report 

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