Insurer Reporting Requirements
Insurer Reporting Requirements
David L. Strickland
National Highway Traffic Safety Administration
February 25, 2013
[Federal Register Volume 78, Number 37 (Monday, February 25, 2013)]
[Rules and Regulations]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-04300]
DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Part 544
[Docket No. NHTSA-2013-0024]
Insurer Reporting Requirements
AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Final rule.
SUMMARY: This final rule repeals NHTSA's regulation requiring motor
vehicle insurers to submit information on the number of thefts and
recoveries of insured vehicles and actions taken by the insurer to
deter or reduce motor vehicle theft. NHTSA is repealing this regulation
because the agency's only available statutory authority to require
insurers to submit this information was removed by the Motor Vehicle
and Highway Safety Improvement Act of 2012 (Mariah's Act) (incorporated
into the Moving Ahead for Progress in the 21st Century Act (MAP-21)).
Given that NHTSA no longer has the authority to require insurers to
submit this information and thus has no discretion to take any action
other than rescinding the regulation, the agency did not issue a notice
of proposed rulemaking (NPRM) prior to this final rule. Under those
circumstances, public comment to the rulemaking is unnecessary.
The repeal of the authority to maintain and enforce the insurer
reporting requirements reduced the paperwork burden on the public by
13,375 hours and reduced the cost to the government in collecting the
information by $64,000.
DATES: Effective date: This final rule is effective February 25, 2013.
Petitions for reconsideration: Petitions for reconsideration of this
final rule must be received not later than April 11, 2013.
ADDRESSES: Any petitions for reconsideration should refer to the docket
number of this document and be submitted to: Administrator, National
Highway Traffic Safety Administration, 1200 New Jersey Avenue SE., West
Building, Ground Floor, Docket Room W12-140, Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT: Carlita Ballard, Office of
International Policy, Fuel Economy and Consumer Programs, NHTSA, 1200
New Jersey Avenue SE., 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.
Pursuant to 49 U.S.C. 33112, Insurer Reports and Information, NHTSA
issued a regulation requiring certain passenger motor vehicle insurers
to file an annual report with the agency. Each insurer is required to
report 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. This statute also gives NHTSA the discretion to exempt small
insurers from the reporting requirements if the agency finds that such
an exemption will not significantly affect the validity or usefulness
of the information in the reports, either nationally or on a state-by-
In order to carry out 49 U.S.C. 33112, NHTSA promulgated 49 CFR
part 544, Insurer Reporting Requirements, which requires insurers to
submit information about the make, model, and year of all vehicle
thefts, the make, model, and year of all vehicle recoveries, whether
the vehicle was recovered in whole or in part, the dollar amount of the
insurer's claims paid out due to theft, 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. 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
(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.
This final rule repeals Part 544 because 49 U.S.C. 33112, which
gives the agency the authority to require insurers to submit
information about motor vehicle thefts, was repealed by Mariah's
Act.\1\ Apart from 49 U.S.C. 33112, the agency does not have any
statutory authority on which it could rely to require insurers to
submit the information required under Part 544. NHTSA has the authority
under 49 U.S.C. 32303, Insurance Information, to require insurers to
submit accident claim information about physical damage, repair costs,
and personal injury but that statute does not provide the agency with
the authority to collect information from insurers about motor vehicle
thefts. Furthermore, 49 U.S.C. 33102, Theft Prevention Standard for
High Theft Lines, states that NHTSA's general authority to issue theft
prevention standards does not authorize the agency to require any
person to keep records or make reports related to motor vehicle thefts
unless the agency has express statutory authority to do so. NHTSA has
statutory authority to issue motor vehicle safety standards, recall
defective and noncompliant vehicles, ensure that imported vehicles
comply with Federal motor vehicle safety standards, issue bumper
standards, prevent odometer fraud, issue fuel economy standards and
issue theft prevention standards. None of the statutory provisions that
authorize those activities give NHTSA the authority to continue to
require insurers to submit information about motor vehicle thefts.
Because the statute authorizing NHTSA to require insurers to report
information about motor vehicle thefts has been repealed and the agency
does not have any other basis to require insurers to submit this
information, we are issuing this final rule to repeal Part 544.
\1\ Public Law 112-141.
The effective date of this final rule is the date of publication.
However, Part 544 ceased to be enforceable on October 1, 2012, the
effective date of the provision in Mariah's Act removing the
agency's authority to require insurers to submit this information.
II. Public Comment
NHTSA did not issue an NPRM prior to this final rule. While the
Administrative Procedure Act requires that agencies publish a general
NPRM in the Federal Register prior to issuing a final rule, an agency
is not required to publish an NPRM if the agency is able to make and
makes a good cause finding that notice and public comment is
``impracticable, unnecessary, or contrary to the public interest.'' \2\
Because NHTSA no longer has the authority to require insurers to submit
information on thefts under Part 544, we cannot enforce those
provisions and must repeal them. Given that the agency has no
discretion as to the outcome of this rulemaking, public comment on it
\2\ 5 U.S.C. 553.
III. Regulatory Notices and Analyses
A. Executive Order 12866, Executive Order 13563, and DOT Regulatory
Policies and Procedures
NHTSA has considered the impact of this rulemaking action under
Executive Order 12866, Executive Order 13563, and the DOT's regulatory
policies and procedures. This final rule was not reviewed by the Office
of Management and Budget (OMB) under E.O. 12866, ``Regulatory Planning
and Review.'' It is not considered to be significant under E.O. 12866
or the Department's regulatory policies and procedures.
This final rule repeals regulations requiring motor vehicle
insurers to submit certain information about vehicle thefts. The repeal
of the authority to maintain and enforce the insurer reporting
requirements reduced the paperwork burden on the public by 13,375 hours
and reduces the cost to the government in collecting the information by
$64,000. Because there are not any costs or savings associated with
this rulemaking, we have not prepared a separate economic analysis for
B. Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act, 5 U.S.C. 60l et
seq., NHTSA has evaluated the effects of this action on small entities.
I hereby certify that this rule would not have a significant impact on
a substantial number of small entities. The final rule would affect
motor vehicle insurers, but the entities that qualify as small
businesses would not be significantly affected by this rulemaking
because the agency is repealing existing requirements that these
entities submit information on motor vehicle thefts to the agency.
C. Executive Order 13132
NHTSA has examined today's rule pursuant to Executive Order 13132
(64 FR 43255, August 10, 1999) and concluded that no additional
consultation with States, local governments or their representatives is
mandated beyond the rulemaking process. The agency has concluded that
the rulemaking would not have sufficient federalism implications to
warrant consultation with State and local officials or the preparation
of a federalism summary impact statement. The final rule would not have
``substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government.'' Because
this final rule is repealing existing requirements, this final rule
will not preempt any state law.
D. National Environmental Policy Act
NHTSA has analyzed this final rule for the purposes of the National
Environmental Policy Act. The agency has determined that implementation
of this action will not have any significant impact on the quality of
the human environment.
E. Paperwork Reduction Act
Under the procedures established by the Paperwork Reduction Act of
1995, a person is not required to respond to a collection of
information by a Federal agency unless the collection displays a valid
OMB control number. The repeal of the authority to maintain and enforce
the insurer reporting requirements reduced the paperwork burden on the
public by 13,375 hours and reduced the cost to the government in
collecting the information by $64,000.
F. National Technology Transfer and Advancement Act
Under the National Technology Transfer and Advancement Act of 1995
(NTTAA) (Pub. L. 104-113), ``all Federal agencies and departments shall
use technical standards that are developed or adopted by voluntary
consensus standards bodies, using such technical standards as a means
to carry out policy objectives or activities determined by the agencies
and departments.'' This Final Rule does not adopt any voluntary
consensus standards because this rulemaking repeals existing
G. Civil Justice Reform
With respect to the review of the promulgation of a new regulation,
section 3(b) of Executive Order 12988, ``Civil Justice Reform'' (61 FR
4729, February 7, 1996) requires that Executive agencies make every
reasonable effort to ensure that the regulation: (1) Clearly specifies
the preemptive effect; (2) clearly specifies the effect on existing
Federal law or regulation; (3) provides a clear legal standard for
affected conduct, while promoting simplification and burden reduction;
(4) clearly specifies the retroactive effect, if any; (5) adequately
defines key terms; and (6) addresses other important issues affecting
clarity and general draftsmanship under any guidelines issued by the
Attorney General. This document is consistent with that requirement.
Pursuant to this Order, NHTSA notes as follows. The preemptive
effect of this final rule is discussed above. NHTSA notes further that
there is no requirement that individuals submit a petition for
reconsideration or pursue other administrative proceeding before they
may file suit in court.
H. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995 requires agencies to
prepare a written assessment of the costs, benefits and other effects
of proposed or final rules that include a Federal mandate likely to
result in the expenditure by State, local or tribal governments, in the
aggregate, or by the private sector, of more than $100 million annually
(adjusted for inflation with base year of 1995). This final rule would
not result in expenditures by State, local or tribal governments, in
the aggregate, or by the private sector in excess of $100 million
I. Executive Order 13211
Executive Order 13211 (66 FR 28355, May 18, 2001) applies to any
rulemaking that: (1) Is determined to be economically significant as
defined under E.O. 12866, and is likely to have a significantly adverse
effect on the supply of, distribution of, or use of energy; or (2) that
is designated by the Administrator of the Office of Information and
Regulatory Affairs as a significant energy action. This rulemaking is
not subject to E.O. 13211.
J. 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.
List of Subjects in 49 CFR Part 544
Imports, Motor vehicle safety, Motor vehicles, Tires, Reporting and
In consideration of the foregoing, under the authority of Sec.
31313, Public Law 112-141, NHTSA amends 49 CFR Chapter V as set forth
PART 544--[REMOVED AND RESERVED]
1. Part 544 is removed and reserved.
Issued in Washington, DC on February 13, 2013 under authority
delegated in 49 CFR 1.95.
David L. Strickland,
[FR Doc. 2013-04300 Filed 2-22-13; 8:45 am]
BILLING CODE 4910-59-P
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