From Jason Stevenson at the Hoffman Group
It will be important for those in transportation insurance to know what CSA 2010 is ( previously explained) and when it will roll out. That does not mean the schedule won't be revised again.
• April 12 – November 30, 2010 – Motor carriers can preview their own data by seeing their roadside inspections/violations and crash events organized by Behavior Analysis and Safety Improvement Category (BASIC).
• Summer 2010
o June 30th – The Operational Model (Op-Model) Test will end.
o July – The four “50/50” Op-Model Test states, Colorado, Georgia, Missouri and New Jersey, will join the five 100% Op-Model Test states in implementing the program.
o August – Motor carriers will be able to see an assessment of their violations based on the new Carrier Safety Measurement System (CSMS) which will replace SafeStat later in 2010.
• Fall/Winter 2010
o SafeStat will be replaced by the CSMS. CSMS will be available to the public, including shippers and insurance companies.
o FMCSA/States will prioritize enforcement using the CSMS.
o FMCSA will begin to issue Warning Letters to carriers with deficient BASICs.
o Roadside inspectors will use the CSMS results to identify carriers for inspection.
• Winter 2010 - Safety Fitness Determination Notice of Proposed Rulemaking (NPRM) is scheduled to be released.
• 2011 – Enforcement staff will be trained, and new interventions will be implemented State-by-State
I am working to understand all the acronyms myself. But I thought you should stay abreast of the situation.
Friday, May 28, 2010
Wednesday, May 19, 2010
Pre-Employment Screening Program Quietly Launched
Think insurance companies will have an interest in this? You bet. Read why below:
FMCSA Launches Pre-Employment Screening Program
WASHINGTON, DC -- The U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) today launched its Pre-Employment Screening Program (PSP), which allows commercial motor carrier companies to electronically access driver inspection and crash records as a part of the hiring process.
"Safety is our highest priority. The Pre-Employment Screening Program sends a strong message to commercial carriers and drivers that we are serious about having the safest drivers behind the wheel of large trucks and buses," said Transportation Secretary Ray LaHood.
"Starting today, commercial carriers will have an essential tool for making informed hiring decisions that will lead to safer drivers on our roads," said FMCSA Administrator Anne S. Ferro. "The Pre-Employment Screening Program raises the safety bar for the motor carrier industry and helps to make our roads safer for everyone."
The Pre-Employment Screening Program offers access to up to five years of driver crash data and three years of inspection data regardless of the state or jurisdiction. By using driver safety information during pre-employment screening, commercial carriers will be able to better assess the potential safety risks of prospective driver-employees. PSP also gives drivers additional opportunities to verify the data in their driving history and correct any discrepancies. A driver's records will be protected in accordance with federal privacy laws.
The Pre-Employment Screening Program is populated monthly by FMCSA's Motor Carrier Management Information System (MCMIS). The MCMIS is comprised of driver performance data including inspection and compliance review results, enforcement data, state-reported crashes, and motor carrier census data.
For complete details on the Pre-Employment Screening Program's fees for driver safety records and how carriers and drivers can participate, visit http://www.psp.fmcsa.dot.gov.
How much does it cost? There is an annual subscription fee of $25 ( $100 if you have over 100 power units ) and the charge is $10 per driver.
It will be interesting to see both if and how the transportation industry will try to access this information
FMCSA Launches Pre-Employment Screening Program
WASHINGTON, DC -- The U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) today launched its Pre-Employment Screening Program (PSP), which allows commercial motor carrier companies to electronically access driver inspection and crash records as a part of the hiring process.
"Safety is our highest priority. The Pre-Employment Screening Program sends a strong message to commercial carriers and drivers that we are serious about having the safest drivers behind the wheel of large trucks and buses," said Transportation Secretary Ray LaHood.
"Starting today, commercial carriers will have an essential tool for making informed hiring decisions that will lead to safer drivers on our roads," said FMCSA Administrator Anne S. Ferro. "The Pre-Employment Screening Program raises the safety bar for the motor carrier industry and helps to make our roads safer for everyone."
The Pre-Employment Screening Program offers access to up to five years of driver crash data and three years of inspection data regardless of the state or jurisdiction. By using driver safety information during pre-employment screening, commercial carriers will be able to better assess the potential safety risks of prospective driver-employees. PSP also gives drivers additional opportunities to verify the data in their driving history and correct any discrepancies. A driver's records will be protected in accordance with federal privacy laws.
The Pre-Employment Screening Program is populated monthly by FMCSA's Motor Carrier Management Information System (MCMIS). The MCMIS is comprised of driver performance data including inspection and compliance review results, enforcement data, state-reported crashes, and motor carrier census data.
For complete details on the Pre-Employment Screening Program's fees for driver safety records and how carriers and drivers can participate, visit http://www.psp.fmcsa.dot.gov.
How much does it cost? There is an annual subscription fee of $25 ( $100 if you have over 100 power units ) and the charge is $10 per driver.
It will be interesting to see both if and how the transportation industry will try to access this information
Thursday, May 6, 2010
Acts of God- It's Time to Get Some Religion
A friend of mine at RLI sent me an article from e-trucker.com and truck legal pro Henry E. Seaton that gave me a bit of pause- and educated & challenged my knowledge of coverage. As you may know we have had a little rain here in Nashville and I have often been accused of being all wet. Here is what I know and learned:
What is an Act of God relative to weather ( note there are Acts of God that are not weather related which I will not bore you with)?
Henry's great definition is that Acts of God are weather conditions of epic proportions - like tornados,floods, hurricanes etc...
Are trucker's insured for Acts of God? Not typically. Remember motor truck cargo is third party legal liability coverage and the trucker is not legally responsible if the proximate cause of loss was an act of god.
Are trucker's normally held legally liable for acts of God? Again no but there are exceptions( an exception would be that the trucker parked in a known flood plain, knew of a big storm coming, and did squat so that everything flooded- so he became liable due to neglect).
But will insurance company pay for Acts of God losses? Yes but not unequivocably. Note if you look at the industry standard AAIS coverage form for motor truck cargo, there is no exclusion for acts of god per se ( although there are many exclusions).
One of the challenges we see daily is that truckers will sign darn near any type of agreement from the shipper to get the business. Frequently those agreements require indemnification, limits of insurance, and unfortunately that the trucker is responsible for all loss or damage. Regrettably that has nothing to do with negligence so you could easily have a situation where the insured is responsible and the insurance carrier shows up with no coverage.
That is why the coverage form is so important. What we want to see happen is that if it is on our truck that the insurance company pays. Period. The reason is that the shippers want the truckers to be responsible. Most insurance carriers pay for a loss where the property:
* was under your care custody and control
AND
* the insured was legally liable
Where does coverage for Acts of God put an agent? In a potential E & O situation .
If a trucker sends you a shipper- carrier contract and it says the insured is responsible for all losses period, you should point out that he may not have coverage for acts of god ( and highlight the exclusions).
Note my viewpoint should not be construed as gospel and considered pejorative- but is based on many years experience writing motor truck cargo business and witnessing claims. Each insurance carrier will have their own take and you should ask them.
What is an Act of God relative to weather ( note there are Acts of God that are not weather related which I will not bore you with)?
Henry's great definition is that Acts of God are weather conditions of epic proportions - like tornados,floods, hurricanes etc...
Are trucker's insured for Acts of God? Not typically. Remember motor truck cargo is third party legal liability coverage and the trucker is not legally responsible if the proximate cause of loss was an act of god.
Are trucker's normally held legally liable for acts of God? Again no but there are exceptions( an exception would be that the trucker parked in a known flood plain, knew of a big storm coming, and did squat so that everything flooded- so he became liable due to neglect).
But will insurance company pay for Acts of God losses? Yes but not unequivocably. Note if you look at the industry standard AAIS coverage form for motor truck cargo, there is no exclusion for acts of god per se ( although there are many exclusions).
One of the challenges we see daily is that truckers will sign darn near any type of agreement from the shipper to get the business. Frequently those agreements require indemnification, limits of insurance, and unfortunately that the trucker is responsible for all loss or damage. Regrettably that has nothing to do with negligence so you could easily have a situation where the insured is responsible and the insurance carrier shows up with no coverage.
That is why the coverage form is so important. What we want to see happen is that if it is on our truck that the insurance company pays. Period. The reason is that the shippers want the truckers to be responsible. Most insurance carriers pay for a loss where the property:
* was under your care custody and control
AND
* the insured was legally liable
Where does coverage for Acts of God put an agent? In a potential E & O situation .
If a trucker sends you a shipper- carrier contract and it says the insured is responsible for all losses period, you should point out that he may not have coverage for acts of god ( and highlight the exclusions).
Note my viewpoint should not be construed as gospel and considered pejorative- but is based on many years experience writing motor truck cargo business and witnessing claims. Each insurance carrier will have their own take and you should ask them.
Wednesday, May 5, 2010
Does an Improving Economy = A Driver Shortage?
According to the TIA, a driver shortage has started to heat up- a sign that a recovery in the freight economy is well under way. The truck driver availability issue has been seen in the past but disappears when freight demand falls, but resurfaces as soon as volumes begin to pick up.
During his recent The State of Freight Webinar, FTR analyst Noël Perry predicted a shortage of about 180,000 in 2010 and 500,000 in 2011 as the recovering economy increases demand and the new regulations crimp the supply.
Truck drivers and driver/sales workers make up one of the largest occupations in the United States, holding 3.2 million jobs in 2008, according to the U.S. Bureau of Labor Statistics.
During his recent The State of Freight Webinar, FTR analyst Noël Perry predicted a shortage of about 180,000 in 2010 and 500,000 in 2011 as the recovering economy increases demand and the new regulations crimp the supply.
Truck drivers and driver/sales workers make up one of the largest occupations in the United States, holding 3.2 million jobs in 2008, according to the U.S. Bureau of Labor Statistics.
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