Insurer Reporting Requirements; List of Insurers Required To File Reports, 54041-54044 [2010-21945]

Download as PDF erowe on DSK5CLS3C1PROD with RULES Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Rules and Regulations so the VCO user can read it in text. A VCO-to-TTY call allows a relay conversation to take place between a VCO user and a TTY user; a VCO-toVCO call allows a relay conversation to take place between two VCO users. The Commission extends the waivers of these requirements for one year for VRS and IP Relay because the most recent annual waiver reports reflect that the Internet cannot support the voice leg of a VCO call with the necessary call quality. These waivers are again conditioned on the filing of a report, due April 16, 2011, addressing whether it is necessary for the waivers to remain in effect, and whether a technical fix is imminent. One-line HCO, HCO-to-TTY, and HCO-to-HCO. One-line HCO is a type of traditional TTY-based TRS that can be used by persons with a speech disability who can hear. The HCO user types what he or she wishes to say to the called party, and the CA voices what the HCO user has typed. The HCO user then listens to what the called party says in response. An HCO-to-TTY call allows a relay conversation to take place between a HCO user and a TTY user; an HCOto-HCO call allows a relay conversation to take place between two HCO users. The Commission extends the waivers of these requirements for one year because the most recent annual waiver reports reflect that VRS and IP Relay providers cannot provide these services. Call Release. Call release allows a CA to set up a TTY-to-TTY call that, once established, does not require the CA to relay the conversation. In other words, this feature allows the CA to sign-off or be ‘‘released’’ from the telephone line, without triggering a disconnection between two TTY users, after the CA connects the originating TTY caller to the called party’s TTY through, e.g., a business switchboard. The Commission extends the waiver of this requirement for one year due to technological infeasibility. Pay-Per-Call (900) calls. Pay-per-call (900) calls are calls that the person making the call pays for at a charge greater than the basic cost of the call. The Commission extends the waiver of this requirement for VRS and IP Relay for one year because the providers’ annual waiver reports reflect there is still no billing mechanism available to handle the charges associated with payper-call calls. Types of Calls (Operated Assisted Calls and Long Distance Calls. Commission rules require TRS providers to handle any type of call routinely handled by common carriers. The requirement that VRS and IP Relay providers offer operator-assisted calls VerDate Mar<15>2010 14:12 Sep 02, 2010 Jkt 220001 and bill certain types of calls to the end user was waived because providers could not determine when a call was local or long distance. VRS and IP Relay providers are required to allow calls to be placed using calling cards and/or provide free long distance during the waiver period. The Commission extends the waiver of this requirement for VRS and IP Relay for one year because the providers’ annual waiver reports reflect that it remains technologically infeasible for providers to bill for these calls, since one leg of the call is transmitted over the Internet. Equal Access to Interexchange Carriers. The TRS rules require that providers offer TRS users their interexchange carrier of choice to the same extent that such access is provided to voice users. The Commission has waived this requirement for VRS providers, noting that it was not possible to determine if a call is long distance and, in any event, the providers could not automatically route the calls to the caller’s long distance carrier of choice. This waiver is contingent on VRS providers providing long distance services free of charge to the caller. The Commission extends the waiver of this requirement for VRS for one year because the providers cannot determine whether a particular call is local or long distance, and so they cannot offer carrier of choice. Instead, providers do not charge consumers for long distance service. The Commission waived this requirement for IP Relay indefinitely. Speech-to-Speech. The Commission recognized STS as a form of TRS and required that it be offered as a mandatory service. The Commission waived this requirement indefinitely for VRS, noting that STS is a speech-based service, whereas VRS is a visual service using interpreters to interpret in sign language over a video connection. The requirement for IP Relay is waived until July 1, 2010, because of technical difficulties with respect to voiceinitiated calls and the Internet. The Commission extends the waiver of this requirement for IP Relay for one year because providers of this service continue to report erratic voice quality. Waiver for Default Providers Using Other Providers’ CPE The Commission extends the waiver of certain mandatory minimum standards for default Internet-based TRS providers that are unable to meet such standards for newly-registered Internetbased TRS users who port their customer premises equipment (CPE) from a former default provider, in those instances where the new default PO 00000 Frm 00037 Fmt 4700 Sfmt 4700 54041 provider does not have access to the technical information about such CPE that would be necessary in order to comply with these standards. Specifically, the Commission extends the waiver for operational requirements, emergency handling requirements, and point-to-point calling associated with such porting. All of these waivers are conditioned on the filing of a report, due April 16, 2011, addressing whether it is necessary for the waivers to remain in effect. Mark Stone, Deputy Bureau Chief, Consumer and Governmental Affairs Bureau, Federal Communications Commission. [FR Doc. 2010–22122 Filed 9–2–10; 8:45 am] BILLING CODE 6712–01–P DEPARTMENT OF TRANSPORTATION National Highway Traffic Safety Administration 49 CFR Part 544 [Docket No. NHTSA–2010–0017] RIN 2127–AK69 Insurer Reporting Requirements; List of Insurers Required To File Reports National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT). ACTION: Final rule. AGENCY: This final rule amends regulations concerning Insurer Reporting Requirements. The regulations specify 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 2007 calendar year before October 25, 2010. If the passenger motor vehicle insurers remain listed, they must submit reports by each subsequent October 25. DATES: This final rule becomes effective on October 4, 2010. Insurers listed in the appendices are required to submit reports on or before October 25, 2010. If you wish to submit a petition for reconsideration of this rule, your petition must be received by October 18, 2010. 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. SUMMARY: E:\FR\FM\03SER1.SGM 03SER1 54042 Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Rules and Regulations 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) 366–0846. Her fax number is (202) 493–2990. SUPPLEMENTARY INFORMATION: erowe on DSK5CLS3C1PROD with RULES 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 VerDate Mar<15>2010 14:12 Sep 02, 2010 Jkt 220001 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 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 grants exemptions to self-insurers, i.e., any person who has a fleet of 20 or more motor vehicles (other than any governmental entity) used for rental or lease whose vehicles are not covered by theft insurance policies issued by insurers of passenger motor vehicles, 49 U.S.C. 33112(b)(1) and (f). Under 49 U.S.C. 33112(e)(1) and (2), NHTSA may exempt a self-insurer 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; (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 the largest companies’ reports sufficiently 1 A.M. Best Company is a well-recognized source of insurance company ratings and information. 49 U.S.C. 33112(i) authorizes NHTSA to consult with public and private organizations as necessary. PO 00000 Frm 00038 Fmt 4700 Sfmt 4700 represent the theft experience of rental and leasing companies. NHTSA concluded that smaller rental and leasing companies’ reports do not significantly contribute to carrying out NHTSA’s statutory obligations and that exempting such companies will relieve an unnecessary burden on them. As a result of the June 1990 final rule, the agency added Appendix C, consisting of an annually updated list of the selfinsurers subject to Part 544. Following the same approach as in Appendix A, NHTSA included, in Appendix C, each of the self-insurers subject to reporting instead of the self-insurers which are exempted. NHTSA updates Appendix C based primarily on information from Automotive Fleet Magazine and Auto Rental News.2 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 October 25 of each year. Thus, any insurer listed in the appendices must file a report before October 25, 2010, and by each succeeding October 25, absent an amendment removing the insurer’s name from the appendices. II. Notice of Proposed Rulemaking 1. Insurers of Passenger Motor Vehicles On June 21, 2010, NHTSA published a notice of proposed rulemaking (NPRM) to update the list of insurers in Appendices A, B, and C required to file reports (75 FR 34966). 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 January 12, 2010 (75 FR 1548). Based on the 2007 calendar year market share data from A.M. Best, NHTSA proposed to make no change to Appendix A. Appendix B lists insurers required to report because each insurer had a 10 percent or greater market share of motor vehicle premiums in a particular State. Based on the 2007 calendar year data for market shares from A.M. Best, we proposed to add Balboa Insurance Group of South Dakota to Appendix B. 2. Rental and Leasing Companies Appendix C lists rental and leasing companies required to file reports. Subsequent to publishing the January 12, 2010 final rule (see 75 FR 1548), the agency was informed by Enterprise Rent-A–Car company (Enterprise), that 2 Automotive Fleet Magazine and Auto Rental News are publications that provide information on the size of fleets and market share of rental and leasing companies. E:\FR\FM\03SER1.SGM 03SER1 Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Rules and Regulations it purchased Vanguard Car Rental, USA (Vanguard) in August of 2007, and that Vanguard will no longer be reporting as a separate entity because it merged with Enterprise in August of 2009. Specifically, Enterprise stated that all reporting would be performed by its parent company, Enterprise Holdings, Inc. for all three brands, National, Alamo and Enterprise. Therefore, NHTSA proposed to remove Vanguard Car Rental USA from the list of insurers required to meet the reporting requirements. Public Comments on Final Determination Insurers of Passenger Motor Vehicles The agency received no comments in response to the NPRM. Therefore, this final rule adopts the proposed changes to Appendices B and C. Accordingly, NHTSA has determined that each of the 19 insurers listed in Appendix A, each of the nine insurers listed in Appendix B and each of five companies listed in Appendix C are required to submit an insurer report on its experience for calendar year 2007 no later than October 25, 2010, and set forth the information required by part 544. As long as these insurers and 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. Submission of Theft Loss Report Passenger motor vehicle insurers listed in the appendices can forward their theft loss reports to the agency in several ways: a. Mail: Carlita Ballard, Office of International Policy, Fuel Economy and Consumer Programs, Department of Transportation, NHTSA, West Building, 1200 New Jersey Avenue, SE., NVS–131, Room W43–439, Washington, DC 20590. b. E–Mail: carlita.ballard@dot.gov; or c. Fax: (202) 493–2990. Theft loss reports may also be submitted to the docket electronically [identified by Docket No. NHTSA– 2010–0017] by: d. logging onto the Federal eRulemaking Portal: Go to http:// www.regulations.gov. Follow the online instructions for filing the document electronically. erowe on DSK5CLS3C1PROD with RULES Regulatory Impacts 1. Costs and Other Impacts 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 VerDate Mar<15>2010 14:12 Sep 02, 2010 Jkt 220001 54043 meaning of the Department of Transportation’s regulatory policies and procedures. 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. The cost estimates in the 1987 final regulatory evaluation should be adjusted for inflation, using the Bureau of Labor Statistics Consumer Price Index for 2007 (see http://www.bls.gov/cpi). The agency estimates that the cost of compliance is $50,000 (1987 dollars) for any insurer added to Appendix A, $20,000 (1987 dollars) for any insurer added to Appendix B, and $5,770 (1987 dollars) for any insurer added to Appendix C. This final rule will make no change to Appendix A, add one company to Appendix B, and remove one company from Appendix C. Therefore, the net effect of this final rule is an increased cost of $14,220 (1987 dollars) to insurers as a group. Interested persons may wish to examine the 1987 final regulatory evaluation. Copies of that evaluation were placed in Docket No. T86–01; Notice 2. Any interested person may obtain a copy of this evaluation by writing to NHTSA, Technical Reference Division, 1200 New Jersey Avenue, SE., East Building (Ground Floor), Room E12–100, Washington, DC 20590, or by calling (202) 366–2588. information is assigned OMB Control Number 2127–0547 (‘‘Insurer Reporting Requirements.’’) 2. Paperwork Reduction Act 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.). The existing information collection indicates that the number of respondents for this collection is thirtythree, however, the actual number of respondents fluctuates from year to year. Therefore, because the number of respondents required to report for this final rule does not exceed the number of respondents indicated in the existing information collection, the agency does not believe that an amendment to the existing information collection is necessary. This collection of 5. Environmental Impacts PO 00000 Frm 00039 Fmt 4700 Sfmt 4700 3. Regulatory Flexibility Act 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 selfinsured rental and leasing company too large to meet that criterion is not a small entity. 4. Federalism This action has been analyzed according to the principles and criteria contained in Executive Order 12612, and it has been determined that the final rule does not have sufficient federalism implications to warrant the preparation of a Federalism Assessment. In accordance with the National Environmental Policy Act, NHTSA has considered the environmental impacts of this final rule and determined that it would not have a significant impact on the quality of the human environment. 6. Civil Justice Reform 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. E:\FR\FM\03SER1.SGM 03SER1 54044 Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Rules and Regulations 7. Regulation Identifier Number (RIN) The Department of Transportation assigns a regulation identifier number (RIN) to each regulatory action listed in the Unified Agenda of Federal Regulations. The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. You may use the RIN contained in the heading at the beginning of this document to find this action in the Unified Agenda. 8. Plain Language Executive Order 12866 requires each agency to write all rules in plain language. Application of the principles of plain language includes consideration of the following questions: b Have we organized the material to suit the public’s needs? b Are the requirements in the proposal clearly stated? b Does the proposal contain technical language or jargon that is not clear? b Would a different format (grouping and order of sections, use of headings, paragraphing) make the rule easier to understand? b Would more (but shorter) sections be better? b Could we improve clarity by adding tables, lists, or diagrams? b What else could we do to make the proposal easier to understand? If you have any responses to these questions, you can forward them to me several ways: a. Mail: Carlita Ballard, Office of International Policy, Fuel Economy and Consumer Programs, NHTSA, West Building, 1200 New Jersey Avenue, SE., NVS–131, Room W43–439, Washington, DC 20590. b. E-mail: carlita.ballard@dot.gov; or Fax: (202) 493–2990. 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 amended as follows: PART 544—[AMENDED] 1. The authority citation for part 544 continues to read as follows: ■ erowe on DSK5CLS3C1PROD with RULES Authority: 49 U.S.C. 33112; delegation of authority at 49 CFR 1.50. 2. In § 544.5, paragraph (a), the second sentence is revised to read as follows: ■ § 544.5 General requirements for reports. (a) * * * This report shall contain the information required by § 544.6 of this part for the calendar year 3 years VerDate Mar<15>2010 14:12 Sep 02, 2010 Jkt 220001 previous to the year in which the report is filed (e.g., the report due by October 25, 2010 will contain the required information for the 2007 calendar year). * * * * * ■ 3. Appendix A to part 544 is revised to read as follows: Issued on: August 30, 2010. Joseph S. Carra, Acting Associate Administrator for Rulemaking. Appendix A—Insurers of Motor Vehicle Insurance Policies Subject to the Reporting Requirements in Each State in Which They Do Business DEPARTMENT OF COMMERCE Allstate Insurance Group American Family Insurance Group American International Group Auto Club Enterprise Insurance Group Auto-Owners Insurance Group Erie Insurance Group Berkshire Hathaway/GEICO Corporation Group California State Auto Group Hartford Insurance Group Liberty Mutual Insurance Companies Metropolitan Life Auto & Home Group Mercury General Group Nationwide Group Progressive Group Safeco Insurance Companies State Farm Group Travelers Companies USAA Group Farmers Insurance Group 4. Appendix B to part 544 is 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) Auto Club (Michigan) Balboa Insurance Group (South Dakota) 1 Commerce Group, Inc. (Massachusetts) Kentucky Farm Bureau Group (Kentucky) New Jersey Manufacturers Group (New Jersey) Safety Group (Massachusetts) Southern Farm Bureau Group (Arkansas, Mississippi) Tennessee Farmers Companies (Tennessee) 1 Indicates a newly listed company which must file a report beginning with the report due October 25, 2010. 5. Appendix C to part 544 is 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 Cendant Car Rental Dollar Thrifty Automotive Group Enterprise Holding Inc./Enterprise Rent-ACar Company 1 Hertz Rent-A-Car Division (subsidiary of The Hertz Corporation) U-Haul International, Inc. (Subsidiary of AMERCO) 1 Enterprise Rent-A-Car Company acquired ownership of Vanguard Car Rental USA in August 2007. PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 [FR Doc. 2010–21945 Filed 9–2–10; 8:45 am] BILLING CODE 4910–59–P National Oceanic and Atmospheric Administration 50 CFR Part 665 [Docket No. 0907211157–0327–03] RIN 0648–AX76 Fisheries in the Western Pacific; Community Development Program Process National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Final rule. AGENCY: This final rule establishes eligibility requirements and procedures for reviewing and approving community development plans for western Pacific fisheries. The intent of this final rule is to promote the participation of island communities in fisheries that they have traditionally depended upon, but in which they may not have the capabilities to support continued and substantial participation. DATES: This rule is effective October 4, 2010, except for § 665.20(c), which contains information collection requirements that have not yet been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act (PRA). When OMB approval is received, the control number and the effective date for that information collection will be published in the Federal Register. ADDRESSES: The background and details of the community development plan process are described in Amendment 1 to the fishery ecosystem plans for American Samoa, Hawaii, the Mariana Archipelago, and western Pacific pelagic fisheries (the amendment is identical for each plan), which is available from the Western Pacific Fishery Management Council (Council), 1164 Bishop St., Suite 1400, Honolulu, HI 96813, tel 808–522–8220, fax 808– 522–8226, or www.wpcouncil.org. Written comments regarding the burden-hour estimates or other aspects of the collection-of-information requirements contained in this final rule may be submitted to NMFS, attention Michael D. Tosatto, 1601 Kapiolani SUMMARY: E:\FR\FM\03SER1.SGM 03SER1

Agencies

[Federal Register Volume 75, Number 171 (Friday, September 3, 2010)]
[Rules and Regulations]
[Pages 54041-54044]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21945]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 544

[Docket No. NHTSA-2010-0017]
RIN 2127-AK69


 Insurer Reporting Requirements; List of Insurers Required To 
File Reports

AGENCY: National Highway Traffic Safety Administration (NHTSA), 
Department of Transportation (DOT).

ACTION: Final rule.

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SUMMARY: This final rule amends regulations concerning Insurer 
Reporting Requirements. The regulations specify 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 2007 calendar 
year before October 25, 2010. If the passenger motor vehicle insurers 
remain listed, they must submit reports by each subsequent October 25.

DATES: This final rule becomes effective on October 4, 2010. Insurers 
listed in the appendices are required to submit reports on or before 
October 25, 2010. If you wish to submit a petition for reconsideration 
of this rule, your petition must be received by October 18, 2010.

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.

[[Page 54042]]


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) 366-0846. 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 state-by-
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 each spring. The agency uses the data to determine the insurers' 
market shares nationally and in each state.
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    \1\ A.M. Best Company is a well-recognized source of insurance 
company ratings and information. 49 U.S.C. 33112(i) authorizes NHTSA 
to consult with public and private organizations as necessary.
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B. Self-Insured Rental and Leasing Companies

    In addition, upon making certain determinations, NHTSA grants 
exemptions to self-insurers, i.e., any person who has a fleet of 20 or 
more motor vehicles (other than any governmental entity) used for 
rental or lease whose vehicles are not covered by theft insurance 
policies issued by insurers of passenger motor vehicles, 49 U.S.C. 
33112(b)(1) and (f). Under 49 U.S.C. 33112(e)(1) and (2), NHTSA may 
exempt a self-insurer 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;
    (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 the largest companies' 
reports sufficiently represent the theft experience of rental and 
leasing companies. NHTSA concluded that smaller rental and leasing 
companies' reports do not significantly contribute to carrying out 
NHTSA's statutory obligations and that exempting such companies will 
relieve an unnecessary burden on them. As a result of the June 1990 
final rule, the agency added Appendix C, consisting of an annually 
updated list of the self-insurers subject to Part 544. Following the 
same approach as in Appendix A, NHTSA included, in Appendix C, each of 
the self-insurers subject to reporting instead of the self-insurers 
which are exempted. NHTSA updates Appendix C based primarily on 
information from Automotive Fleet Magazine and Auto Rental News.\2\
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    \2\ Automotive Fleet Magazine and Auto Rental News are 
publications that provide information on the size of fleets and 
market share of rental and leasing companies.
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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 October 25 of each year. Thus, any insurer listed 
in the appendices must file a report before October 25, 2010, and by 
each succeeding October 25, absent an amendment removing the insurer's 
name from the appendices.

II. Notice of Proposed Rulemaking

1. Insurers of Passenger Motor Vehicles

    On June 21, 2010, NHTSA published a notice of proposed rulemaking 
(NPRM) to update the list of insurers in Appendices A, B, and C 
required to file reports (75 FR 34966). 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 January 12, 2010 (75 FR 1548). Based on the 2007 calendar 
year market share data from A.M. Best, NHTSA proposed to make no change 
to Appendix A.
    Appendix B lists insurers required to report because each insurer 
had a 10 percent or greater market share of motor vehicle premiums in a 
particular State. Based on the 2007 calendar year data for market 
shares from A.M. Best, we proposed to add Balboa Insurance Group of 
South Dakota to Appendix B.

2. Rental and Leasing Companies

    Appendix C lists rental and leasing companies required to file 
reports. Subsequent to publishing the January 12, 2010 final rule (see 
75 FR 1548), the agency was informed by Enterprise Rent-A-Car company 
(Enterprise), that

[[Page 54043]]

it purchased Vanguard Car Rental, USA (Vanguard) in August of 2007, and 
that Vanguard will no longer be reporting as a separate entity because 
it merged with Enterprise in August of 2009. Specifically, Enterprise 
stated that all reporting would be performed by its parent company, 
Enterprise Holdings, Inc. for all three brands, National, Alamo and 
Enterprise. Therefore, NHTSA proposed to remove Vanguard Car Rental USA 
from the list of insurers required to meet the reporting requirements.

Public Comments on Final Determination

Insurers of Passenger Motor Vehicles

    The agency received no comments in response to the NPRM. Therefore, 
this final rule adopts the proposed changes to Appendices B and C. 
Accordingly, NHTSA has determined that each of the 19 insurers listed 
in Appendix A, each of the nine insurers listed in Appendix B and each 
of five companies listed in Appendix C are required to submit an 
insurer report on its experience for calendar year 2007 no later than 
October 25, 2010, and set forth the information required by part 544. 
As long as these insurers and 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.

Submission of Theft Loss Report

    Passenger motor vehicle insurers listed in the appendices can 
forward their theft loss reports to the agency in several ways:
    a. Mail: Carlita Ballard, Office of International Policy, Fuel 
Economy and Consumer Programs, Department of Transportation, NHTSA, 
West Building, 1200 New Jersey Avenue, SE., NVS-131, Room W43-439, 
Washington, DC 20590.
    b. E-Mail: carlita.ballard@dot.gov; or
    c. Fax: (202) 493-2990.
    Theft loss reports may also be submitted to the docket 
electronically [identified by Docket No. NHTSA-2010-0017] by:
    d. logging onto the Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for filing the 
document electronically.

Regulatory Impacts

1. Costs and Other Impacts

    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 procedures. 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. The cost estimates in the 1987 
final regulatory evaluation should be adjusted for inflation, using the 
Bureau of Labor Statistics Consumer Price Index for 2007 (see http://www.bls.gov/cpi). The agency estimates that the cost of compliance is 
$50,000 (1987 dollars) for any insurer added to Appendix A, $20,000 
(1987 dollars) for any insurer added to Appendix B, and $5,770 (1987 
dollars) for any insurer added to Appendix C. This final rule will make 
no change to Appendix A, add one company to Appendix B, and remove one 
company from Appendix C. Therefore, the net effect of this final rule 
is an increased cost of $14,220 (1987 dollars) to insurers as a group.
    Interested persons may wish to examine the 1987 final regulatory 
evaluation. Copies of that evaluation were placed in Docket No. T86-01; 
Notice 2. Any interested person may obtain a copy of this evaluation by 
writing to NHTSA, Technical Reference Division, 1200 New Jersey Avenue, 
SE., East Building (Ground Floor), Room E12-100, Washington, DC 20590, 
or by calling (202) 366-2588.

2. Paperwork Reduction Act

    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.). The existing information collection indicates that the 
number of respondents for this collection is thirty-three, however, the 
actual number of respondents fluctuates from year to year. Therefore, 
because the number of respondents required to report for this final 
rule does not exceed the number of respondents indicated in the 
existing information collection, the agency does not believe that an 
amendment to the existing information collection is necessary. This 
collection of information is assigned OMB Control Number 2127-0547 
(``Insurer Reporting Requirements.'')

3. Regulatory Flexibility Act

    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.

4. Federalism

    This action has been analyzed according to the principles and 
criteria contained in Executive Order 12612, and it has been determined 
that the final 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 final rule and determined 
that it would not have a significant impact on the quality of the human 
environment.

6. Civil Justice Reform

    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.

[[Page 54044]]

7. Regulation Identifier Number (RIN)

    The Department of Transportation assigns a regulation identifier 
number (RIN) to each regulatory action listed in the Unified Agenda of 
Federal Regulations. The Regulatory Information Service Center 
publishes the Unified Agenda in April and October of each year. You may 
use the RIN contained in the heading at the beginning of this document 
to find this action in the Unified Agenda.

8. Plain Language

    Executive Order 12866 requires each agency to write all rules in 
plain language. Application of the principles of plain language 
includes consideration of the following questions:
    [ballot] Have we organized the material to suit the public's needs?
    [ballot] Are the requirements in the proposal clearly stated?
    [ballot] Does the proposal contain technical language or jargon 
that is not clear?
    [ballot] Would a different format (grouping and order of sections, 
use of headings, paragraphing) make the rule easier to understand?
    [ballot] Would more (but shorter) sections be better?
    [ballot] Could we improve clarity by adding tables, lists, or 
diagrams?
    [ballot] What else could we do to make the proposal easier to 
understand?
    If you have any responses to these questions, you can forward them 
to me several ways:
    a. Mail: Carlita Ballard, Office of International Policy, Fuel 
Economy and Consumer Programs, NHTSA, West Building, 1200 New Jersey 
Avenue, SE., NVS-131, Room W43-439, Washington, DC 20590.
    b. E-mail: carlita.ballard@dot.gov; or Fax: (202) 493-2990.

List of Subjects in 49 CFR Part 544

    Crime insurance, Insurance, Insurance companies, Motor vehicles, 
Reporting and recordkeeping requirements.

0
In consideration of the foregoing, 49 CFR part 544 is amended as 
follows:

PART 544--[AMENDED]

0
1. The authority citation for part 544 continues to read as follows:

    Authority:  49 U.S.C. 33112; delegation of authority at 49 CFR 
1.50.


0
2. In Sec.  544.5, paragraph (a), the second sentence is revised to 
read as follows:


Sec.  544.5  General requirements for reports.

    (a) * * * This report shall contain the information required by 
Sec.  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, 
2010 will contain the required information for the 2007 calendar year).
* * * * *

0
3. Appendix A to part 544 is 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

Allstate Insurance Group
American Family Insurance Group
American International Group
Auto Club Enterprise Insurance Group
Auto-Owners Insurance Group
Erie Insurance Group
Berkshire Hathaway/GEICO Corporation Group
California State Auto Group
Hartford Insurance Group
Liberty Mutual Insurance Companies
Metropolitan Life Auto & Home Group
Mercury General Group
Nationwide Group
Progressive Group
Safeco Insurance Companies
State Farm Group
Travelers Companies
USAA Group
Farmers Insurance Group


0
4. Appendix B to part 544 is 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)
Auto Club (Michigan)
Balboa Insurance Group (South Dakota) \1\
Commerce Group, Inc. (Massachusetts)
Kentucky Farm Bureau Group (Kentucky)
New Jersey Manufacturers Group (New Jersey)
Safety Group (Massachusetts)
Southern Farm Bureau Group (Arkansas, Mississippi)
Tennessee Farmers Companies (Tennessee)

    \1\ Indicates a newly listed company which must file a report 
beginning with the report due October 25, 2010.


0
5. Appendix C to part 544 is 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

Cendant Car Rental
Dollar Thrifty Automotive Group
Enterprise Holding Inc./Enterprise Rent-A-Car Company \1\
Hertz Rent-A-Car Division (subsidiary of The Hertz Corporation)
U-Haul International, Inc. (Subsidiary of AMERCO)

    \1\ Enterprise Rent-A-Car Company acquired ownership of Vanguard 
Car Rental USA in August 2007.

    Issued on: August 30, 2010.
Joseph S. Carra,
Acting Associate Administrator for Rulemaking.
[FR Doc. 2010-21945 Filed 9-2-10; 8:45 am]
BILLING CODE 4910-59-P