Interpretation ID: nht87-2.46

TYPE: INTERPRETATION-NHTSA

DATE: 07/13/87

FROM: AUTHOR UNAVAILABLE; Erika Z. Jones; NHTSA

TO: Mr. Noel H. McMormick

TITLE: FMVSS INTERPRETATION

TEXT:

Mr. Noel H. McCormick Personal Lines Coordination Manager Sentry Insurance 1800 North Point Drive Stevens Point, WI 54481

Dear Mr. McCormick:

This responds to your letters to our Administrator, concerning whether your company should be subject to 49 CFR Part 544, Insurer Reporting Requirements, for the reports due not later than October 25, 1987. I am pleased to have this opportunity to explai n our rulemaking procedures to you.

As you know, we publish annual amendments to the listing of insurance companies subject to the reporting requirements of Part 544. These amendments are made in accordance with the informal rulemaking provisions of the Administrative Procedure Act; 5 U.S. C. 553. Those provisions require the agency to publish a proposed listing of insurers subject to the reporting requirements, and give the public an opportunity to comment on the proposal. After all comments are received, the agency evaluates the comments and publishes a final listing.

On May 28, 1987, we published a proposed listing of insurers that would be subject to the reporting requirements for the October, 1987 reports: 52 FR 19898 (copy enclosed). As you will see, this proposed listing identifies your company as one that would be subject to the reporting requirements. The comment period for this proposal closes on July 13, 1987. The agency will consider all comments received as of that date in preparing the final listing of insurance companies required to file a report in Octo ber, 1987.

Pursuant to normal informal rulemaking procedures, your first letter on this subject was treated as a comment on the proposed listing and put in the public docket for this rulemaking action, along with any other comments we receive on the proposed listin g. In your most recent letter, you stated that, in a telephone conversation with agency staff, you "did not receive an adequate explanation" of why your company would be subject to these reporting requirements. Therefore, you stated that your company doe s not plan to file an October, 1987 report. Agency staff cannot offer any opinions about what the final agency decision on this matter will be before the decision has been made. No final decision can be made until all comments have been considered and th e statutory provisions and past agency positions reexamined. This procedure will begin after July 13, 1987, when the comment period closes.

You should be aware of the fact that if your company is included in the final listing of subject insurance companies and you do not file the required report, this agency has authority to seek both a civil penalty and injunctive relief against your compan y' pursuant to 15 U.S.C. 2028.

Sincerely,

Erika Z. Jones Chief Counsel

May 27, 1987 National Highway Traffic Safety Administration 400 Seventh Street. SW Washington. D.C. 20590

RE: INSURER REPORT - 1986 AUTOMOBILE THEFT CLAIMS

This letter is a follow-up to my letter of May 6. 1987 and our phone conversation of May 27, 1987. We appreciate your effort in reviewing and concurring that our premium writings on a countrywide basis are 0.984%

We have been informed that A. M. Best has rounded this percentage to 1%, and thus in the Federal Register, Sentry will be listed as one of the companies required to submit data for the report due October 25, 1987.

In my May 27 phone conversation, I did not receive an adequate explanation as to how .984 can be rounded to 1%. Without that explanation. our interpretation is that our percentage is less than 1%. Therefore, Sentry does not plan to submit data for the Oc tober, 1987 report.

Sincerely yours,

Noel H. McCormick Personal Lines Coordination Manager SENTRY INSURANCE A MUTUAL COMPANY