[Federal Register Volume 64, Number 86 (Wednesday, May 5, 1999)]
[Proposed Rules]
[Pages 24123-24128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-11212]
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DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
49 CFR Parts 360 and 387
[FHWA Docket No. FHWA-97-2923; MC-97-11]
RIN 2125-AE06
Qualifications of Motor Carriers to Self-Insure Their Operations
and Fees to Support the Approval and Compliance Process
AGENCY: Federal Highway Administration (FHWA), DOT.
ACTION: Notice of proposed rulemaking (NPRM); request for comments.
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SUMMARY: This document proposes to identify circumstances in which the
public is subjected to an unacceptable level of risk of uncompensated
losses generated from bodily injury and property damage (BI&PD) claims
arising from the actions of for-hire motor carriers conducting self-
insured operations in interstate or foreign commerce. More
specifically, the FHWA seeks public comment on a proposal to reevaluate
the security and collateral requirements of any self-insured carrier
that fails to generate from operations, after payment of all expenses
except annual self-insurance claims expenses, twice the level of cash
needed to pay the self-insurance claims. The FHWA also proposes to
assess an additional application fee to cover carrier requests for
modifications and alterations to self-insurance authorizations which
require a reevaluation of the carrier's financial condition. The FHWA
can now do the basic first-time self-insurance application for $3,000.
This amount is $1,200 less than the $4,200 fee the FHWA currently
charges. Thus, the agency is also proposing to reduce the fee for
processing the initial application to $3,000 for an economic cost
savings. The proposed actions will not apply to carriers authorized to
self-insure cargo-only claims. The requirements for cargo-only self-
insurance are not substantial because the required cargo coverage is
relatively small. Consequently, the expenses for reviewing cargo-only
applications are not significant. Further, the risk of an unacceptable
level of uncompensated self-insurance cargo claims is low.
Finally, this NPRM would also propose implementing additional
procedures necessary for motor carriers to establish billing accounts
to pay all insurance-related fees required by the Federal Highway
Administration. A schedule of filing fees and general instructions
regarding payment are provided.
DATES: Comments must be received on or before July 6, 1999.
ADDRESSES: Your signed, written comments must refer to the docket
number appearing at the top of this document and you must submit the
comments to the Docket Clerk, U.S. DOT Dockets, Room PL-401, 400
Seventh Street, SW., Washington, DC 20590-0001. All comments received
will be available for examination at the above address between 9 a.m.
and 5 p.m., e.t., Monday through Friday, except Federal holidays. Those
desiring notification of receipt of comments must include a self-
addressed, stamped envelope or postcard.
FOR FURTHER INFORMATION CONTACT: Mr. John F. Grimm, (202) 366-4039, or
Mr. Stanley M. Braverman, (202) 358-7035, Office of Motor Carriers,
FHWA, 400 Virginia Avenue, SW., Suite 600, Washington, DC 20024; or Mr.
Michael J. Falk, Office of the Chief Counsel, HCC-20, (202) 366-1384,
FHWA, 400 Seventh Street, SW., Washington, DC 20590. Office hours are
from 7:45 a.m. to 4:15 p.m., e.t., Monday through Friday, except
Federal holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access
Internet users can access all comments received by the U.S. DOT
Dockets, Room PL-401, by using the universal resource locator (URL):
http://dms.dot.gov. It is available 24 hours each day, 365 days each
year. Please follow the instructions online for more information and
help.
An electronic copy of this document may be downloaded using a modem
and suitable communications software from the Government Printing
Office's Electronic Bulletin Board Service at (202) 512-1661. Internet
users may reach the Federal Register's home page at: http://
www.nara.gov/fedreg and the Government Printing Office's database at:
http://www.access.gpo.gov/nara.
I. Background
On September 23, 1997, the FHWA published an advance notice of
proposed rulemaking (ANPRM) to examine the sufficiency of existing
self-insurance requirements, the need for assessing additional fees for
processing and monitoring functions, and the propriety of seeking
congressional authorization to terminate the self-insurance program
altogether (62 FR 49654, FHWA Docket No. MC-97-11). On September 29,
1997, the FHWA corrected the assigned FHWA docket number and address
for submission of comments (62 FR 50892, FHWA Docket No. FHWA-97-2923;
MC-97-11).
The ANPRM was published primarily to obtain comments from motor
carriers, insurance companies, and other interested parties to
determine whether the existing self-insurance requirements and
conditions were sufficiently stringent to ensure that the public is
protected against uncompensated losses. The FHWA requested public
comment on the sufficiency of the back-up collateral required for the
authorizations both in form and amount, the reporting requirements, and
on proposed fees to cover application modification and monitoring
functions. The former
[[Page 24124]]
Interstate Commerce Commission (ICC) always charged application fees;
however, charges for monitoring carrier compliance with agency
requirements were not assessed. A series of questions raising issues
concerning the merits of retaining the self-insurance program were also
proposed.
The Transportation Equity Act for the 21st Century (Pub. Law 105-
178, 112 Stat. 107) (June 9, 1998) makes no changes in the
authorization to provide a self-insurance program and does not impact
on the recommendations contained herein.
II. Responses to Public Comments
Twenty-seven (27) comments were received from motor carriers and
their associations, insurance associations, a single insurance company,
and a law firm. No comments were received from parties with bankruptcy
claims pending against carriers that were previously authorized to
self-insure.
A. The Propriety of Retaining the Self-Insurance Program
The carriers, their associations, and the sole commenting insurance
company argue that self-insurance should be retained. Apart from
illustrating the carrier benefits derived from the program, several
commenters contend that as long as the Federal requirement for
mandatory insurance remains in place, the self-insurance option should
remain available to qualified applicants. The National Association of
Independent Insurers and the commenting law firm urge repeal of the
self-insurance program, and the Advocates for Highway and Auto Safety
call into question the entire mandatory insurance requirement for motor
carriers. The issue concerning mandatory insurance is clearly beyond
the scope of this proceeding and, accordingly, the FHWA makes no
comment on the proposal offered by the Advocates for Highway and Auto
Safety. Nevertheless, the mandatory insurance requirement is a relevant
consideration in attempting to determine the propriety of retaining the
self-insurance authorization. The FHWA is persuaded by the equity of
the carriers' contention that the continued existence of the mandatory
requirement justifies the self-insurance option for qualified
applicants.
B. Proposed Changes in Security Requirements and Fee Proposals
For the most part, the carriers and carrier associations dispute
that any problems with the self-insurance program exist and object to
the alteration of security and reporting requirements, and the
imposition of additional fees. In support of this proposition,
commenters argue that the ICC Termination Act of 1995 (ICCTA) (Pub. L.
No. 104-88, 109 Stat. 803) prohibits the imposition of additional
requirements on carriers already granted authorization to self-insure.
Several carriers also contend that the monitoring fees are
discriminatory since the FHWA does not assess a fee for insurance
filings. Some carriers indicated that reasonable charges reflecting the
actual expenses incurred in dealing with special modifications should
be recovered.
The provision of the ICCTA which applies to the issue raised by the
complaining carriers, 49 U.S.C. 13906(d), provides: ``Motor carriers
which have been granted authority to self-insure as of the effective
date of this section shall retain that authority unless, for good cause
shown and after notice and an opportunity for a hearing, the Secretary
[of Transportation] finds that the authority must be revoked.'' This
section merely provides that challenges to a self-insurance grant must
be made on a case-by-case basis. Further, each self-insurance
authorization contains a condition which provides that the FHWA retains
the authority to terminate the authorization when it appears that the
carrier's financial arrangements fail to provide satisfactory
protection to the public. Another condition authorizes the FHWA to
require the carrier to submit any additional information the FHWA deems
necessary. Clearly, the FHWA retains the authority to impose additional
requirements where circumstances justify such action.
The FHWA does not agree with the contention that the imposition of
monitoring fees on carriers holding self-insurance authorizations is
prohibited. The carriers seek to equate the monitoring fees with a new
qualification that would be imposed on all self-insured carriers. The
imposition of a fee has nothing to do with a carrier's qualifications
to self-insure. Certainly, the carriers could not seriously contend
that the monitoring fee presents a barrier to self-insured operations,
given the required showing of financial fitness.
Several commenters have questioned the ability of the FHWA to
conduct the necessary oversight. The FHWA has hired an investment
banking firm (the firm) to conduct the yearly monitoring and
application analysis in an effort to upgrade the quality of the
financial reviews. Decisions regarding authorizations and continued
compliance will still be made by the FHWA staff based on the
information provided by the contractor. The decision to employ a
contractor was designed to accomplish two purposes: (1) to upgrade the
quality of the financial analysis and oversight; and (2) to provide the
resources to ensure that the necessary tasks were accomplished in a
timely manner.3
The firm's charges for the quarterly and annual compliance review
amount to $2,600 per carrier. The charges can be broken down as
follows:
Fees To Monitor Existing Self-Insured Carrier
------------------------------------------------------------------------
Hourly
Annual monitoring fee-existing carrier Hours rate Total
------------------------------------------------------------------------
Clerical..................................... 2.5 $34.40 $86.00
Financial and claims analysis................ 10.0 91.40 914.00
Report preparation........................... 12.0 91.40 1,096.80
Principal consultant......................... 1.0 177.39 177.39
Director..................................... 1.0 249.47 249.47
--------------------------
Total...................................... 26.5 ....... 2,523.66
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The contractor conducts a complete carrier review regardless of the
number of carriers conducting operations under a parent. Each carrier
retains its own authorization and must comply with various conditions.
Currently, the self-insurance monitoring costs are subsidized by the
fees generated from new carrier applicants. Despite carrier claims to
the contrary, the FHWA assesses a fee to cover the cost of each
insurance filing made on behalf of carriers operating with commercial
insurance to ensure accuracy. The FHWA finds nothing in the ICCTA that
would bar the imposition of reasonable fees to recover costs associated
with monitoring the self-insurance conditions. Failure to recover the
annual monitoring costs would continue the unfair cross subsidization
of the self-insurance program by carriers that do not enjoy its
benefits. The proposed monitoring fee would be due on the filing date
of the carrier's annual report [90 days after the end of the reporting
year].
The recent financial failures of three self-insured carriers have
caused the FHWA to reevaluate its ability to properly monitor the
financial condition of carriers and insure that continued operations
will generate sufficient funds to pay self-insurance claims. Since
proration and disbursement of trust funds is still pending in two
cases, the FHWA deems comment on the impact
[[Page 24125]]
of the proceedings to be inappropriate at this time, especially since
none of the affected parties have filed comments in this proceeding.
The FHWA considers any self-insured carrier's financial failure to be a
breach of the integrity of the program, as well as imposing an
unanticipated and unjustifiable risk on the public. In this regard, the
FHWA considers carrier comments that all business activities generate
risks to be unpersuasive. Since the FHWA is charged with administering
the self-insurance program, it must insure that the public is
adequately protected from uncompensated losses generated by carriers
authorized by the FHWA to continue to conduct self-insured operations.
C. The Proposal To Extend the Automatic Revocation Provision to 45 Days
for Carriers That Lose Their Satisfactory Safety Rating
No commenters objected to extending the 30-day automatic expiration
provision for carriers with less than satisfactory safety ratings to 45
days. Two carriers suggested that the FHWA regional staff be authorized
to waive the automatic expiration provision if no connection is found
between the safety rating and self-insured operations. The FHWA
believes that the 45 day period will provide the field staff with
sufficient opportunity to upgrade a carrier's rating if necessary
corrective action has been undertaken. Accordingly, further discretion
to waive the expiration provision would not be necessary.
III. The FHWA Proposals
The FHWA does not propose in this proceeding any additional
requirements which self-insured carriers must meet regardless of their
current financial condition. Instead, the FHWA seeks public comment on
a ``minimum financial fitness standard'' that should be satisfied by
all carriers authorized to self-insure their motor carrier operations.
Failure to meet this measure of financial fitness would establish that
the carrier does not have in place sufficient financial arrangements to
protect the public against uncompensated losses as required in each
self-insurance authorization. The standard would require each carrier
to generate from operations, after payment of all expenses except
annual self-insurance claims expenses, sufficient cash flow to pay
twice the amount of the self-insured claims. Carriers that failed to
meet this standard would be required to provide adequate collateral to
cover their outstanding claims liability. Unfunded letters of credit
would no longer be accepted. At the very least, the FHWA would require
the execution of a letter of credit with a ``hard draw'' (mandatory
drawdown) provision which would automatically fund a standby trust if
self-insured operations ceased, or if bankruptcy proceedings were
initiated. The time provided for the funding of such collateral would
be determined on a case-by-case basis.
In addition, such carriers would be required to submit an
independent annual certified claims reports. The FHWA plans to issue an
order at a later date that would require carriers authorized to self-
insure to file the independent annual certified claims report. That
order would also contain the filing date and any related conditions
that must be met. The FHWA believes that failure to retain sufficient
cash to comfortably cover current claims payments is sufficient
justification for concluding that the carrier's financial arrangements
fail to provide satisfactory protection to the public as required by
each self-insurance authorization. This is especially true since
virtually none of the carriers authorized to self-insure maintain
sufficient collateral to cover existing reserves for outstanding self-
insurance claims. While the FHWA has the authority to reconsider any
self-insurance authorization on a case-by-case basis, public comment on
the proposed financial fitness standard is nevertheless solicited.
With respect to fees for modification of self-insurance
authorizations, the FHWA proposes to assess a fee of $2,500 based upon
the following contractor's cost analysis:
Fees To Modify Existing Carrier's Authorization
------------------------------------------------------------------------
Hourly
Changes/modifications-existing carrier Hours rate Total
------------------------------------------------------------------------
Clerical..................................... 2 $34.40 $68.80
Financial and claims analysis................ 10 91.40 914.00
Report preparation........................... 10 91.40 914.00
Principal consultant......................... 2 177.39 354.78
Director..................................... 1 249.47 249.47
--------------------------
Total.................................... 25 ....... 2,501.05
------------------------------------------------------------------------
In addition, the FHWA proposes to reduce the application fee for
BI&PD self-insurance to $3,000 based upon the following cost analysis:
Fees for New Self-Insured Carrier Application
------------------------------------------------------------------------
Hourly
New carrier application Hours rate Total
------------------------------------------------------------------------
Clerical...................................... 1.5 $34.40 $51.60
Financial and claims analysis................. 15 91.40 1,371.00
Report preparation............................ 10 91.40 914.00
Principal consultant.......................... 2 177.39 354.78
Director...................................... 1 249.47 249.47
-------------------------
Total..................................... 29 ....... 2,940.85
------------------------------------------------------------------------
All proposed fees are based on recovery of contractor costs. The
FHWA does not propose to recover its own labor costs because the amount
will likely vary depending on the amount of time needed for review and
decisionmaking.
Section 387.309 of title 49, CFR, provides that ``any self-
insurance authority granted by the Commission [now the FHWA] will
automatically expire 30 days after a carrier receives a less than
satisfactory rating from DOT.'' No objections to FHWA's proposal to
extend the period to 45 days were lodged by the commenters.
Accordingly, the FHWA reiterates this proposal.
Rulemaking Analyses and Notices
All comments received before the close of business on the comment
closing date shown above will be considered and will be available for
examination in the FHWA Docket at the above address. Comments received
after the comment closing date will be filed in the FHWA Docket
identified above and will be considered to the extent practicable, but
the FHWA may issue a final rule any time after the close of the comment
closing period. In addition to late comments, the FHWA will also
continue to file in the docket relevant information that becomes
available after the comment closing date, and interested persons should
continue to examine the docket for new material.
Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures
The FHWA has initially determined that this document contains a
significant regulatory action under Executive Order 12866 and under the
Department of Transportation's policies and procedures because this
NPRM may raise novel legal or policy issues arising out of legal
mandates. The NPRM is also significant because it has substantial
public interest. The public has no reasonable means of challenging a
self-
[[Page 24126]]
insured authorization and is not likely to know which motor carriers
are self-insured. As discussed above, this NPRM would adopt a financial
fitness standard for carriers authorized to self insure their
operations and would enable the FHWA to take timely remedial action to
prevent carrier defaults on self-insurance claims. In addition, this
rule would institute additional nominal fees to recoup expenses
associated with the contractor's participation in the self-insurance
program.
Executive Order 12866 requires that regulatory agencies assess both
the costs and benefits of intended regulations, and propose regulations
on the basis that the benefits justify the costs. The proposed
regulation is designed to provide notice and guidance to a group of
approximately 55 motor carriers authorized to self-insure their
operations, 9 of which have authorizations which cover cargo-only
liability. This proposed rule merely codifies the authority the FHWA
already possesses to administer the self-insurance program. The
recommended ``yearly'' monitoring fee of $2,600 is simply designed to
recoup costs associated with the analysis performed by a contractor.
The FHWA estimates the annual cost for the contractor to monitor
existing self-insured carriers at $143,000 (55 carriers x $2,600).
While we do not expect all 55 carriers that self-insure to request
modifications or alterations to their existing authorizations, the FHWA
estimates the costs for such analyses at $137,500 if all carriers were
to do so. Thus, for purposes of Executive Order 12866, this rulemaking
does not impose an economic burden greater than $100 million on motor
carriers that self-insure.
It is also important to note that carriers authorized to self-
insure obtain a substantial economic benefit by not having to maintain
commercial insurance coverage in the federally mandated amounts. The
vast majority of these carriers self-insure at the $1,000,000 level
which corresponds to the required level of coverage. These carriers, as
well as the public, benefit from the existence of a comprehensive
monitoring program designed to insure that all carriers authorized to
self-insure comply with the terms of their authorizations. Only
carriers maintaining an outstanding financial condition should be
authorized to self-insure their operations. The gross revenues
generated by carriers holding the BI&PD authorizations range from
$8,396,000 to $1,207,601,000, or an average of $174,345,468. These
carriers are exposed to an average claims balance of $3,412,882. The
proposed yearly monitoring fee, therefore, would have little impact on
these carriers given their financial strength. Thirteen entities
include from two to seven self-insured carriers and each carrier would
be required to pay the yearly monitoring fee. Nevertheless, the payment
of multiple fees by these carrier groups would have little or no impact
on their financial conditions. To argue otherwise would call into
question their qualifications to self-insure. Requests for
modifications of self-insurance authorizations are infrequent and the
proposed fees should add little or no burden to the carriers since the
requested modification would likely create a new financial benefit. For
example, the benefits created by a reduction in the back-up collateral
amount, the increase of the authorization amount, and the addition of
additional carriers to the authorization, would all provide financial
benefits far in excess of the one-time modification fee. Lastly, the
reduced application fee from $4,200 to $3,000 would provide a modest
benefit and cost savings to all future applicants. Overall, the FHWA
has designed the thrust of its recommended proposals to provide the
general public with greater protection from the likelihood of
sustaining uncompensated losses resulting from an accident involving a
self-insured carrier.
Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), the FHWA has evaluated the effects of this rule on small
entities. The proposed regulatory changes would have little or no
effect on small entities since they do not participate in the bodily
injury and property damage self-insurance program. The small entities
that self-insure their operations only seek cargo coverage and would
not be affected by any of the proposals, because the financial
requirements for obtaining a cargo-only authorization are far less
stringent than for BI&PD applicants. Further, the FHWA is unaware of
any default by a cargo-only self-insurer. Accordingly, the FHWA
certifies that this action would not have a significant economic impact
on a substantial number of small entities.
Unfunded Mandates Reform Act
The FHWA has initially determined that this proposed rule does not
impose any unfunded mandates on State, local, or tribal governments in
the aggregate, or by the private sector, of $100 million or more in any
one year, as required by the Unfunded Mandates Reform Act of 1995 (2
U.S.C. 1532).
Executive Order 12612 (Federalism Assessment)
This action has been analyzed in accordance with the principles and
criteria contained in Executive Order 12612 and it has been determined
that this action does not have sufficient federalism implications to
warrant the preparation of a federalism assessment.
Executive Order 12372 (Intergovernmental Review)
Catalog of Federal Domestic Assistance Program Number 20.217, Motor
Carrier Safety. The regulations implementing Executive Order 12372
regarding intergovernmental consultation on Federal programs and
activities do not apply to this program.
Paperwork Reduction Act
This proposal amends an existing collection of information
requirement for purposes of the Paperwork Reduction Act of 1995, 44
U.S.C. 3501-3520. The proposed rule would add additional requirements
to the Office of Management and Budget's (OMB) approved budget for OMB
Control Number FHWA 2125-0570, in the form of a certified claims
report. The Form BMC-40, Application to Self-Insure under 49 U.S.C.
13906, is the application form used by carriers to apply for self-
insurance authority. The proposed rule would not add additional
requirements to the application.
The proposed independent certified annual claims report would
amount to a limited additional collection of information requirement
because it would only be imposed in remedial situations involving no
more than four or five carriers at any one time. Further, it will only
be imposed when circumstances warrant. The estimate of four or five
carriers is based upon a maximum eight percent of carriers evidencing
financial difficulties. The FHWA further estimates that 50 percent of
these carriers authorized to self-insure would eventually leave the
self-insurance program altogether. Carriers in the remedial program
that failed to improve their financial condition would eventually lose
the self-insurance authorization. Consequently, even if new carriers
entered the remedial program, the total number of participants would
remain fairly constant. The FHWA estimates that 40 hours would be
required to complete the certified claims report. Thus, 40 hours
multiplied by the anticipated 5 carriers would result in total burden
hours of no more than 200.
[[Page 24127]]
Organizations and individuals desiring to submit comments on the
information collection requirements concerning the additional certified
claims report must direct them to the Docket Clerk, U.S. DOT Dockets,
Room PL-401, 400 Seventh Street, SW., Washington, D.C. 20590-0001.
National Environmental Policy Act
The agency has analyzed this action for the purpose of the National
Environmental Policy Act of 1969, as amended (42 U.S.C. 4321 et seq.)
and has determined that this action will not have any effect on the
quality of the environment.
Regulation Identification Number
A regulation identification number (RIN) is assigned 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. The RIN contained in the heading of
this document can be used to cross reference this action with the
Unified Agenda.
List of Subjects
49 CFR Part 360
Administrative practice and procedure, Fees, Insurance, Motor
carriers.
49 CFR Part 387
Commercial motor vehicles, Freight forwarders, Hazardous materials
transportation, Insurance, Motor carriers, Penalties, Reporting and
recordkeeping requirements, Surety bonds.
Issued on: April 27, 1999.
Gloria J. Jeff,
Federal Highway Deputy Administrator.
In consideration of the foregoing, the FHWA proposes to amend title
49, Code of Federal Regulations, Chapter III, part 360 and
Sec. 387.309, as set forth below:
PART 360--[AMENDED]
1. Revise the authority citation for part 360 to read as follows:
Authority: 5 U.S.C. 552(a)(4)(A) and 553; 31 U.S.C. 9701; 49
U.S.C. 13908(c) and 14504(c)(2); and 49 CFR 1.48.
2. Amend Sec. 360.3(f) by revising item number (50) under part II,
Insurance, to read as follows:
Sec. 360.3 Filing fees.
* * * * *
(f) Schedule of filing fees.
* * * * *
Type of Proceeding: Fee
* * * * *
Part II: Insurance:
* * * * *
(50)
(i) An application for original qualification as self-insurer 3,000
for bodily injury and property damage insurance (BI&PD)......
(ii) An application for original qualification as self-insurer 420
for cargo insurance..........................................
(iii) Modification of self-insurance authorization............ 2,500
(iv) Self-insurance compliance monitoring fee................. 2,600
* * * * *
3. Add Sec. 360.7 to read as follows:
Sec. 360.7 Insurance service fee account.
(a)(1) Manner of payment. The service fee for insurance, surety or
self-insurer accepted certificate of insurance, surety bond or other
instrument submitted in lieu of a broker surety bond must be charged to
an insurance service account established by the Federal Highway
Administration in accordance with paragraph (a)(2) of this section.
(2) Billing account procedure. A written request must be submitted
to the Office of Motor Carrier Information Analysis, Licensing and
Insurance Division, to establish an insurance service fee account.
(i) Each account will have a specific billing date within each
month and a billing cycle. The billing date is the date that the bill
is prepared and printed. The billing cycle is the period between the
billing date in one month and the billing date in the next month. A
bill for each account which has activity or an unpaid balance during
the billing cycle will be sent on the billing date each month. Payment
will be due 20 days from the billing date. Payments received before the
next billing date are applied to the account. Interest will accrue in
accordance with 4 CFR 102.13.
(ii) The Debt Collection Act of 1982, including disclosure to the
consumer reporting agencies and the use of collection agencies, as set
forth in 4 CFR 102.5-102.6 will be utilized to encourage payment where
appropriate.
(iii) An account holder who files a petition in bankruptcy or who
is the subject of a bankruptcy proceeding must provide the following
information to the Office of Motor Carrier Information Analysis,
Licensing and Insurance Division:
(A) The filing date of the bankruptcy petition;
(B) The court in which the bankruptcy petition was filed;
(C) The type of bankruptcy proceeding;
(D) The name, address, and telephone number of its representative
in the bankruptcy proceeding; and
(E) The name, address, and telephone number of the bankruptcy
trustee, if one has been appointed.
(3) Payment of fees by check, money order, or credit card. Fees
will by payable to the Federal Highway Administration by a check
payable in United States currency drawn upon funds deposited in a
United States or foreign bank or other financial institution, money
order payable in United States currency, or credit card (VISA or
MASTERCARD).
(b) Deferred payment of filing fee. Any filing that is not
accompanied by the appropriate filing fee is deficient except for
filings that satisfy the deferred payment procedures in paragraph (a)
of this section.
(c) Fees not refundable. Fees will be assessed for every filing in
the type of proceeding listed in the schedule of fees contained in part
II of the table in Sec. 360.3(b). Fees are generally not refundable.
PART 387--[AMENDED]
4. The authority citation for part 387 continues to read as
follows:
Authority: 49 U.S.C. 13101, 13301, 13906, 14701, 31138, and 49
U. S.C. 31139; and 49 CFR 1.48.
5. Amend paragraphs (a) and (b) of Sec. 387.309 by revising the
word ``Commission'' to read ``Federal Highway Administration'; amend
paragraph (a)(3) by revising the words ``30 days'' to read ``45 days';
and add paragraph (c) to read as follows:
Sec. 387.309 Qualification as a self-insurer and other securities or
agreements.
* * * * *
(c) Continued financial fitness. Carriers authorized to self-insure
their bodily injury and property damage liability that fail to generate
from operations at least twice the cash flow of the amount of self-
insured claims paid in the most recent 12 month period as reported to
the FHWA, will be required to increase the collateral required by the
self-insurance authorization to a level equaling the outstanding self-
insured claims liability in order to provide the necessary financial
arrangements to protect the public from exposure to uncompensated
losses. Unfunded letters of credit will not be accepted from carriers
in this financial condition. The time provided for the increased
collateral funding will be established on a case-by-case basis. These
carriers will be required to submit annual certified reports confirming
the
[[Page 24128]]
accuracy of the outstanding self-insurance claims liability.
[FR Doc. 99-11212 Filed 5-4-99; 8:45 pm]
BILLING CODE 4910-22-P