8206 Federal Register / Vol. 62, No. 36 / Monday, February 24, 1997 / Proposed Rules

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.

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 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.

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 selfinsurer 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.
Federal Register / Vol. 62, No. 36 / Monday, February 24, 1997 / Proposed Rules 8207

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
8208 Federal Register / Vol. 62, No. 36 / Monday, February 24, 1997 / Proposed Rules

1 Indicates a newly listed company which must

file a report beginning with the report due on

October 25, 1997.

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 selfaddressed, 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:

§ 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.

§ 544.4 [Amended]

3. Paragraph (a) of § 544.4 would be

revised to read as follows:

§ 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.

* * * * *

§ 544.5 [Amended]

4. Paragraph (a) of § 544.5 would be

revised to read as follows:

§ 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

§ 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
Federal Register / Vol. 62, No. 36 / Monday, February 24, 1997 / Proposed Rules 8209

1 Indicates a newly listed company which must

file a report beginning with the report due on

October 25, 1997.

1These regulations describe, inter alia, the

placement, form, and content of the notice given

when a rail passenger carrier seeks a fare increase.

The Board has proposed that these regulations be

eliminated. Regulations for the Publication, Posting

and Filing of Tariffs for the Transportation of

Property by or with a Water Carrier in the

Noncontiguous Domestic Trade, STB Ex Parte No.

618 (STB served Dec. 20, 1996).

2New 49 U.S.C. 11101 (b) and (d) require

disclosure of rail common carrier rates and service

terms. New 49 U.S.C. 11101(c) further requires rail

carriers providing common carriage to give advance

notice of rate increases to those who have requested

such notification. See Disclosure, Pub. & Notice of

Change of Rates—Rail Carriage, 1 S.T.B. 153 (1996)

and 49 CFR 1300.

3See 49 U.S.C. 721(b)(4).

A T & T Automotive Services, Inc.1

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

Surface Transportation Board

49 CFR Part 1136

[STB Ex Parte No. 624]

Removal of Obsolete Regulations

Concerning Rail Passenger Fare

Increases

AGENCY: Surface Transportation Board,

DOT.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Surface Transportation

Board (Board) proposes to remove from

the Code of Federal Regulations obsolete

regulations concerning rail passenger

carrier commutation or suburban fare

increases.

DATES: Comments are due on March 26,

1997.

ADDRESSES: Submit comments to

Surface Transportation Board, Office of

the Secretary, Case Control Board,

Washington, DC 20423.

FOR FURTHER INFORMATION CONTACT:

Beryl Gordon, (202) 927–5660. [TDD for

the hearing impaired: (202) 927–5721.]

SUPPLEMENTARY INFORMATION: Effective

January 1, 1996, the ICC Termination

Act of 1995, Pub. L. No. 104–88, 109

Stat. 803 (ICCTA), abolished the

Interstate Commerce Commission (ICC)

and established the Board within the

Department of Transportation. Section

204(a) of the ICCTA provides that ‘‘[t]he

Board shall promptly rescind all

regulations established by the [ICC] that

are based on provisions of law repealed

and not substantively reenacted by this

Act.’’

The regulations at 49 CFR part 1136

require that a rail passenger carrier

proposing commutation or suburban

fare increases concurrently file tariffs

and verified statements with the ICC

and the Governor and appropriate state

or county regulatory agency. The carrier

is also to certify that the notice

provisions of 49 CFR 1312.5 have been

met.1

The ICC issued these regulations, in

Notice of Increases in Frt. Rates and

Pass. Fares, 349 I.C.C. 741 (1975), to

ensure that rail and motor carriers

would give advance notice of and

justification for commutation and

suburban passenger fare increases. The

rules were designed to facilitate the

filing of potential protests seeking the

suspension and/or investigation of fare

increases. Subsequently, the ICC

modified these regulations by removing

their application to motor passenger

carriers. Practice and Procedure-Misc.

Amendments-Revisions, 6 I.C.C.2d 587

(1990). The ICC reasoned that it could

not investigate, suspend, revise or

revoke for being unreasonable a rate

proposed by a motor passenger carrier

acting independently and noted,

moreover, that there had been no

complaints or protests under these rules

regarding ratemaking activity by

passenger carriers. See Practice and

Procedure-Miscellaneous AmendmentsRevision, Ex Parte No. 55 (Sub-No.73)

(ICC served Oct. 10, 1989).

We believe that the remaining

regulations in Part 1136 are now also

obsolete. Under the ICCTA, with certain

exceptions not relevant here, ‘‘the Board

does not have jurisdiction * * * over

mass transportation provided by a local

governmental authority.’’ 49 U.S.C.

10501(c)(2). Even as to rail passenger

transportation that might not qualify for

that exemption, our regulatory authority

is quite limited. The tariff filing

requirements formerly applicable to rail

carriers, at former 49 U.S.C. 10761 and

10762, have been repealed.2 Moreover,

although the Board has the authority to

issue injunctions ‘‘when necessary to

prevent irreparable harm,’’ 3 there is no

longer a procedure for protesting,

investigating, and suspending rates or

fares prior to their going into effect.

Under these circumstances, we do not

believe that the regulations at 49 CFR

1136 are necessary. We seek comments

concerning their proposed removal.

The Board preliminarily concludes

that the removal of the rule, if adopted,

would not have a significant effect on a

substantial number of small entities.

The effect, if any, of this rule’s removal

will be to lessen the regulatory filing

requirements of rail passenger carriers.

We believe that the removal of the

notice provision is unlikely to

significantly affect small governmental

jurisdictions. The Board, however, seeks

comments on whether there would be

effects on small entities that should be

considered.

This action will not significantly

affect either the quality of the human

environment or the conservation of

energy resources.

List of Subjects in 49 CFR Part 1136

Administrative practice and

procedure, Buses, Railroads.

Decided: February 10, 1997.

By the Board, Chairman Morgan and Vice

Chairman Owen.

Vernon A. Williams,

Secretary.

PART 1136—[REMOVED]

For the reasons set forth in the

preamble and under the authority of 49

U.S.C. 721(a), title 49, chapter X of the

Code of Federal Regulations is proposed

to be amended by removing part 1136.

[FR Doc. 97–4502 Filed 2–21–97; 8:45 am]

BILLING CODE 4915–00–P