Source: https://www.federalregister.gov/documents/2006/09/05/E6-14633/insurer-reporting-requirements-list-of-insurers-required-to-file-reports
Timestamp: 2017-11-23 10:26:04
Document Index: 34544506

Matched Legal Cases: ['art 544', 'art 544', 'art 544', 'art 544', 'art 544', 'art 544', '§\u2009544']

A Rule by the National Highway Traffic Safety Administration on 09/05/2006
This final rule becomes effective on November 6, 2006. Insurers listed in the appendices are required to submit reports before October 25, 2006.
71 FR 52291
52291-52294 (4 pages)
Docket No.: NHTSA-2006-24175
2127-AJ88
E6-14633
https://www.federalregister.gov/d/E6-14633 https://www.federalregister.gov/d/E6-14633
Start Preamble Start Printed Page 52291
Rosalind Proctor, Office of International Vehicle, Fuel Economy and Consumer Standards, NHTSA, 400 Seventh Street, SW., Washington, DC 20590, by electronic mail to rosalind.proctor@dot.gov. Ms. Proctor's telephone number is (202) 366-0846. Her fax number is (202) 493-2290.
Under part 544, as long as an insurer is listed, it must file reports on or before October 25 of each year. Thus, any insurer listed in the appendices must file a report before October 25, and by each succeeding October 25, absent an amendment removing the insurer's name from the appendices. Start Printed Page 52292
On April 3, 2006, NHTSA published a notice of proposed rulemaking (NPRM) to update the list of insurers in Appendices A, B, and, C required to file reports (71 FR 16541). Appendix A lists insurers that must report because each had 1 percent of the motor vehicle insurance premiums on a national basis. The list was last amended in a final rule published on July 25, 2005 (70 FR 42505). Based on the 2003 calendar year market share data from A.M. Best, NHTSA proposed to remove California State Auto Association from Appendix A.
Each of the 18 insurers listed in Appendix A are required to file a report before October 25, 2006, setting forth the information required by Part 544 for each State in which it did business in the 2003 calendar year. As long as these 18 insurers remain listed, they are required to submit a report by each subsequent October 25 for the calendar year ending slightly less than 3 years before.
Appendix B lists insurers required to report for particular States for calendar year 2003, because each insurer had a 10 percent or greater market share of motor vehicle premiums in those States. Based on the 2003 calendar year data for market shares from A.M. Best, we proposed to remove Nodak Mutual Group (North Dakota) and add Safety Group (Massachusetts) to Appendix B.
The nine insurers listed in Appendix B are required to report on their calendar year 2003 activities in every State where they had a 10 percent or greater market share. These reports must be filed by October 25, 2006, and set forth the information required by part 544. As long as these nine 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.
Appendix C lists rental and leasing companies required to file reports. Based on information in Automotive Fleet Magazine and Auto Rental News for 2003, NHTSA proposed to remove Avis Rent-A-Car, Budget Rent-A-Car Corporation, Dollar Rent-A-Car Systems, Inc. and ANC Rental Corporation and add the Cendant Car Rental Group,[3] Dollar Thrifty Automotive Group [4] and Vanguard Car Rental USA.[5] Each of the 13 companies (including franchisees and licensees) listed in Appendix C are required to file reports for calendar year 2003 no later than October 25, 2006, and set forth the information required by part 544. As long as those 13 companies remain listed, they would be required to submit reports before each subsequent October 25 for the calendar year ending slightly less than 3 years before.
In response to the NPRM, the agency received one formal comment. In a letter dated April 27, 2006, Automotive Resources International/Automotive Rentals, Inc. (ARI), requested the agency to remove its name from the list of insurers required to meet the insurer reporting requirements. ARI informed the agency that it is not an insurer and does not allow self-insurance. ARI explained that it is a national long-term corporate fleet lessor/fleet management company, not affiliated in any way with an insurance company or carrier, and that its lessees are responsible for all insurance coverages on their leased vehicles. ARI further explained that while it is named as an additional insured/interest on its lessee's insurance policies, it does not keep records of these policies or become involved in theft claims because they are handled through the lessee's insurance company. Subsequent to the comment closing period, the agency was informed by five additional companies, the Donlen Corporation, GE Capital Fleet Services/GE Fleet Services, Lease Plan USA, Inc., PHH Vehicle Management Services/PHH Arval, and Wheels, Inc. that when they offer vehicles for lease, they also include as a condition of the lease agreement that the lessor provide its own motor vehicle insurance. Specifically, four of the five companies (Donlen Corporation, GE Capital Fleet Services/GE Fleet Services, Lease Plan USA, Inc., and Wheels, Inc.,) reported that they do not self-insure any of their vehicles. At NHTSA's request these companies submitted copies of their lease agreements showing that insurance was required as a condition of the lease. One company, PHH Vehicle Management Services/PHH Arval, reported that it does allow self-insurance but self-insures fewer than 50,000 vehicles in its fleet.
Section 33112(b)(1) of Title 49 of the United States Code (U.S.C.) defines an insurer to include “a person (except a governmental authority) having a fleet of at least 20 motor vehicles that are used primarily for rental or lease and that are not covered by a theft insurance policy issued by an insurer of passenger motor vehicles”.[6]
Since all of these companies either require its lessees to provide the insurance for its vehicles, or do not self-insure 50,000 or more vehicles in its leasing fleet, none of them meet the criteria the agency uses to determine that an insurer should be included in Appendix C. Therefore, the agency determines that each of these six companies should be removed from Appendix C in the final rule.
The agency received no comments in response to the NPRM for Appendices A and B. Accordingly, this final rule adopts the proposed changes to Appendix A and B.
After reviewing the public comments and making the appropriate adjustment to Appendix C, NHTSA has determined that each of the 18 insurers listed in Appendix A, each of the nine insurers listed in Appendix B and each of 7 companies listed in Appendix C are required to submit an insurer report on its experience for calendar year 2003 as required by 49 CFR part 544.
a. Mail: Rosalind Proctor, Office of International Policy, Fuel Economy and Consumer Standards, NHTSA, NVS-131, 400 Seventh Street, SW., Washington, DC 20590;
This notice has not been reviewed under Executive Order 12866, Regulatory Planning and Review. NHTSA has considered the impact of this final rule and determined that the action is not “significant” within the meaning of the Department of Transportation's regulatory policies and Start Printed Page 52293procedures. This final 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 rule, reflecting 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 Bureau of Labor Statistics Consumer Price Index for 2005 (see http://www.bls.gov/​cpi), the cost estimates in the 1987 final regulatory evaluation were adjusted for inflation. The agency estimates that the cost of compliance is $97,650 for any insurer added to Appendix A, $39,060 for any insurer added to Appendix B, and $11,269 for any insurer added to Appendix C. In this final rule, the agency made no additional changes to Appendices A and B, and includes six fewer companies in Appendix C, as compared to the last list of insurers published in the April 3, 2006 NPRM. The agency estimates that the net effect of this final rule would be a cost savings of approximately $67,614 to insurers as a group.
The information collection requirements in this final rule were submitted 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 is assigned OMB Control Number 2127-0547 (“Insurer Reporting Requirements”) and approved for use through August 31, 2009, and the agency will seek to extend the approval afterwards.
The agency 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 will not have a significant economic impact on a substantial number of small entities. The rationale for the certification is that none of the companies listed on Appendices A, B, or C are 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 1 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, 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 exempts 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 exempts 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.
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, and section 32909 does not require submission of a petition for reconsideration or other administrative proceedings before parties may file suit in court.
a. Mail: Rosalind Proctor, Office of International Policy, Fuel Economy and Consumer Standards, NHTSA, 400 Seventh Street, SW., Washington, DC 20590;
(a) * * * This report shall contain the information required by § 544.6 of this part for the calendar year 3 years previous to the year in which the report is filed (e.g., the report due by October 25, 2006 will contain the required information for the 2003 calendar year).
American Family Insurance Group Start Printed Page 52294
Safety Group (Massachusetts) [1]
Issued on: August 29, 2006.
Cendant Car Rental acquired ownership of Avis and Budget Rent-a-Car in 2002. Back to Citation
Dollar Thrifty Automotive Group acquired ownership of Dollar Rent-a-Car Systems, Inc. and Thrifty, Inc., in 2001. Back to Citation
Vanguard Car Rental USA acquired ownership of ANC Rental Corporation in 2003. Back to Citation
6. As previously noted, NHTSA has by regulation increased the exemption to 50,000 vehicles.
1. Indicates a newly listed company, which must file a report beginning with the report due October 25, 2006.
[FR Doc. E6-14633 Filed 9-1-06; 8:45 am]