Monday, October 24, 2011

Compliance Requirements

What are the compliance requirements for heavier trucks?

Heavier trucks with a GVWR greater than 26,000 pounds would have two primary ways to comply. Fleets could comply with the compliance schedule by engine model year or could use a phase-in option that is more flexible. Heavier trucks would be required to meet the compliance schedule shown below. Fleets that comply with the schedule would install the best available PM filter on 1996 model year and newer engines and would replace the vehicle 8 years later. Trucks with 1995 model year and older engines would be replaced starting 2015. Replace-ments with a 2010 model year or newer engines meet the final requirements, but fleets could also replace with used trucks that would have a future compliance date on the schedule. For example, a replacement with a 2007 model year engine complies until 2023. By 2023, all trucks must have 2010 model year engines with few exceptions. No reporting would be required if complying with this schedule.



Compliance Schedule for Heavier Trucks
Engine Year Replacement Date
Pre-1994 No requirement until 2015, then 2010 engine
1994-1995 No requirement until 2016, then 2010 engine
1996-1999 PM filter from 2012 to 2020, then 2010 engine
2000-2004 PM filter from 2013 to 2021, then 2010 engine
2005-2006 PM filter from 2014 to 2022, then 2010 engine
2007-2009 No requirement until 2023, then 2010 engine
2010 Meets final requirements

In addition, there would be a phase-in option that allows fleets to decide which vehicles to retrofit or replace, regardless of engine model year. Fleets must report information about all of their heavier trucks starting January 31, 2012, to use this option. Fleets could comply by demonstrating they have met the percentage requirement each year as shown in the table. For example, by 2012 the fleet would need to have PM filters on 30 percent of the heavier trucks in the fleet. This option counts 2007 model year and newer engines originally equipped with PM filters toward compliance and would reduce the overall number of retrofit PM filters needed. Any engine with a PM filter regardless of model year would be compliant until at least 2020. Beginning January 1, 2020, all heavier trucks would need to meet the requirements specified in the "Compliance Schedule for Heavier Trucks."

Phase-In Option for Heavier Trucks
Compliance Date Vehicles with PM Filters
January 1, 2012 30%
January 1, 2013 60%
January 1, 2014 90%
January 1, 2015 90%
January 1, 2016 100%


For additional information you can contact Brent Thunstrom at brent@covermybigrig.com

**California ARB Update**

California ARB On-Road Heavy-Duty Diesel Vehicles (In-Use) Regulation

Enforcement Advisory No. 424 for owners of Diesel Trucks operating in California:
The purpose of this advisory is to explain administrative changes in implementing the requirements of the truck regulations consistent with the amendments considered by the ARB on December 17, 2010. The amendments would delay the initial January 1, 2011 compliance date by one year and would defer engine replacement by 2 or more years for most fleets. The regulation applies to nearly all diesel fueled trucks with gross vehicle weight rating (GVWR) greater than 14,000 pounds that are privately or federally owned.


What are the requirements for lighter trucks?

Lighter trucks with GVWR of 14,001 to 26,000 pounds do not have compliance requirements until 2015. Starting January 1, 2015, lighter trucks with engines that are 20 years or older will need to be replaced with newer trucks. Starting January 1, 2020, all remaining trucks will need to be replaced so that they all have 2010 model year engines or equivalent emissions by 2023. Fleets also have the option to install a PM filter retrofit on a lighter truck by 2014 to make the truck exempt from replacement until January 1, 2020, and
any lighter truck equipped with a PM filter retrofit prior to July 2011 can receive credit toward the compliance requirements for heavier trucks in the same fleet.


Compliance Schedule for Lighter Trucks
Engine Year Replacement Date
1995 and Older January 1, 2015
1996 January 1, 2016
1997 January 1, 2017
1998 January 1, 2018
1999 January 1, 2019
2003 and Older January 1, 2020
2004-2006 January 1, 2021
2007-2009 January 1, 2023

FMCSA Issues Proposed Rule on Hours-of-Service Requirements for Commercial Truck Drivers

The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) has issued a regulatory proposal that would revise hours-of-service (HOS) requirements for commercial truck drivers.

The publication of this proposed rule coincides with the timeframe established in a court settlement agreement that requires FMCSA to publish a final HOS rule by July 26, 2011. This new HOS proposal would retain the "34-hour restart" provision allowing drivers to restart the clock on their weekly 60 or 70 hours by taking at least 34 consecutive hours off-duty. However, the restart period would have to include two consecutive off-duty periods from midnight to 6:00 a.m. Drivers would be allowed to use this restart only once during a seven-day period.

Additionally the proposal would require commercial truck drivers to complete all driving within a 14-hour workday, and to complete all on-duty work-related activities within 13 hours to allow for at least a one-hour break. It also leaves open for comment whether drivers should be limited to 10 or 11 hours of daily driving time, although FMCSA currently favors a 10-hour limit.
Commercial truck drivers who violate this proposed rule would face civil penalties of up to $2,750 for each offense. Trucking companies that allow their drivers to violate the proposal's driving limits would face penalties of up to $11,000 for each offense. Other key provisions include the option of extending a driver's daily shift to 16 hours twice a week to accommodate for issues such as loading and unloading at terminals or ports, and allowing drivers to count some time spent parked in their trucks toward off-duty hours.

For more information regarding commercial truck drivers contact Brent at (951) 200-5655 or email him at brent@covermybigrig.com.

Technology: On-board Brake Stroke Monitoring

On-board brake stroke monitoring systems enhance commercial motor vehicle safety by relaying critical information about air brake adjustment and operational status to drivers, inspectors, and maintenance personnel. These systems can detect major brake problems in real-time.

On-board brake stroke monitoring systems can provide important safety benefits for carrier personnel, since commercial motor vehicle braking system design and operation are directly related to stopping distance, han-dling, and overall vehicular safety. On-board brake stroke monitoring systems can provide warnings to drivers and/or maintenance personnel if braking ability is degraded to an unsafe level. The information provided by these systems can be a valuable aid in diagnosing braking problems for carriers in order to maintain the optimum safety and operation of the vehicle. In addition, braking information can be readily available to enforcement personnel during roadside inspections, possibly resulting in reduced numbers of brake inspections, and reduced downtime associated with these inspections.

Operational safety can be increased by the driver’s added awareness of the condition of the vehicle's brakes through the system’s display of real-time operational data. By using these systems, the number of under-vehicle brake stroke inspections, requiring the driver or maintenance personnel to crawl under the power unit or trailer with a measuring tape to check each air-brake pushrod stoke, can be reduced. In addition, pre-trip inspection times, which might last 30 minutes or more, can be substantially decreased. Although these systems can be a valuable aid to a driver in monitoring and maintaining proper brake adjustment, they are not intended to replace regular, comprehensive brake inspections.

U.S. DOT Proposes Rule to Ban Handheld Cell Phone Use for Commercial Truck Drivers

As part of its campaign to put an end to the practice of distracted driving, the U.S. Department of Transportation proposed a new safety regulation that would specifically prohibit interstate commercial truck drivers from using hand-held cell phones while operating a commercial motor vehicle (CMV).
The proposed Federal Motor Carrier Safety Administration (FMCSA) rule would prohibit commercial drivers from reaching for, holding or dialing a cell phone while operating a CMV. Drivers who violate these restrictions would face federal civil penalties of up to $2,750 for each offense and disqualification of their commercial driver's license (CDL) for multiple offenses. Additionally, states would suspend a driver's CDL after two or more violations of any state law on hand-held cell phone use.

Motor carriers that allow their drivers to use hand-held cell phones while driving would face a maximum penalty of $11,000. According to DOT statistics, approximately four million interstate commercial drivers would be affected by this proposal.

FMCSA research shows that using a hand-held cell phone while driving requires a commercial driver to take several risky steps. In particular, commercial drivers reaching for an object, such as a cell phone, while driving are three times more likely to be involved in a crash or other safety-critical event. Drivers dialing a hand-held cell phone while driving increase their risk by six times. Nearly 5,500 people died and half a million were injured in crashes involving a distracted driver in 2009. Distraction-related fatalities represented 16 percent of overall traffic fatalities in 2009, according to National Highway Traffic Safety Administration (NHTSA) research. To learn more about the U.S. Department of Transportation's efforts to stop distracted driving, please visit http://www.distraction.gov.

Powered Industrial Trucks


Each year, tens of thousands of injuries related to powered industrial trucks (PIT), or forklifts, occur in US workplaces. Many employees are injured when lift trucks are inadvertently driven off loading docks, lifts fall between docks and an unsecured trailer, they are struck by a lift truck, or when they fall while on elevated pallets and tines. Most incidents also involve property damage, including damage to overhead sprinklers, racking, pipes, walls, and machinery. Unfortunately, most employee injuries and property damage can be attributed to lack of safe operating procedures, lack of safety-rule enforcement, and insufficient or inadequate training.

What does the OSHA standard require?

The standard requires employers to develop and implement a training program based on the general principles of safe truck operation, the types of vehicle(s) being used in the workplace, the hazards of the workplace created by the use of the vehicle(s), and the general safety requirements of the OSHA standard. Trained operators must know how to do the job properly and do it safely as demonstrated by workplace evaluation. Formal (lecture, video, etc.) and practical (demonstration and practical exercises) training must be provided. Employers must also certify that each operator has received the training and evaluate each operator at least once every three years. Prior to operating the truck in the workplace, the employer must evalu-ate the operator's performance and determine the operator to be competent to operate a powered industrial truck safely. Refresher training is needed whenever an operator demonstrates a deficiency in the safe operation of the truck. Training shall consist of a combination of formal instruction (e.g., lecture, discussion, interactive computer learning, video tape, written material), practical training (demonstrations performed by the trainer and practical exercises performed by the trainee), and evaluation of the operator's performance in the workplace. [29 CFR 1910.178(l)(2)(ii)]

Loss Control

Wilshire Insurance loss control professionals work in a dynamic and collaborative business environment, advising clients, and exercising specialized skills in representing, handling, and managing all matters with our strategic business units. Our goal is to understand fully, each customer’s business and interests to enable them to manage risk successfully with an eye to enhancing the bottom line. WIC Group’s loss control department believes in this philosophy, evaluates your risks, and provides risk management solutions and loss control services to ensure that your business continues to grow and prosper.
Our role is to assist in establishing a working partnership with the carrier to provide the best utilization of loss control services, to define and document objectives in a written risk management plan, and to develop methods of monitoring and measuring risk.
For additional information contact Brent at (951) 200-5655 or email him at brent@covermybigrig.com

Technology: Electronic Logbooks

As more and more commercial truckers jump into the computer age, their reliance on technology to enable them to operate smarter has increased dramatically. Regardless of whether you are a fleet driver hoping to monitor your miles, reimbursements, and logs, or an independent owner/operator that needs an all-in-one solution, there is a software application for nearly everyone.

While you may still prefer keeping paper logs, many of the software programs have features that allow fleets to input log data for electronic logbook record keeping and compliance purposes. Some will make note of e-log errors and will automatically generate "gotcha" letters, which provide a company the opportunity to correct any errors before an enforcement officer does it for them during a roadside inspection or during a D.O.T. compliance review.

Trucking software applications are very much like any other commercially available software products on the market today. Most likely, there are several applications that will meet your needs, but rarely will you find a software application that is perfect in all ways; therefore, it is important to evaluate those that meet as many of your needs as possible.

Will the FMCSA use CSA 2010 to Remove CMV Drivers from their Jobs?

According to FMCSA officials, CSA 2010 does not give new authority to remove drivers from their jobs and cannot be used to publicly rate or assess drivers’ safety performance in the way carriers are rated or assessed today. Here are some relevant facts relating to driver employment:
  • Carriers will not inherit any newly hired drivers’ past violations. Only those inspections and crashes that a driver is involved in while operating under a carrier’s authority can be applied to a carrier’s SMS.
  • Similar to today’s SafeStat, tickets or warnings that drivers receive while operating their personal vehicles do not count in the new SMS.
  • Neither FMCSA nor CSA 2010 restricts drivers based on body mass BMI, weight, or neck size.
  • Drivers should ask current and potential motor carrier employers about their safety performance as measured under CSA 2010. Drivers and carriers with strong safety performance histories stand to benefit from the new compliance and enforcement program.
In addition, FMCSA officials state that CSA 2010 does not give FMCSA the authority to revoke a CDL. Only state agencies responsible for issuing CDLs have the authority to suspend or revoke them.
  • The CDL program is completely separate from CSA 2010. FMCSA has developed and issued standards for the testing and licensing of CDL holders. These standards require states to issue CDLs only after the driver has passed knowledge and skills tests related to the type of vehicles the driver expects to operate.
  • The data kept by a state (i.e. tickets, citations, written warnings, convictions) and the data kept by the federal government and used in the DSMS (i.e. violations from roadside inspections and crash reports) are separate. Commercial drivers may review the data kept by the federal government through the PSP program and may request a review of the federal data through FMCSA’s DataQs system (https://dataqs.fmcsa.dot.gov/

Periodic Smoke Inspection

The PSIP program requires that all California-based fleets of two or more heavy-duty vehicles (gross vehicle rating over 6,000 pounds) are required to perform annual smoke and tamper inspections of their fleet. Fleet owners are not required to inspect vehicles that are powered by diesel engines until after the 4th model year of the engine. (Example: 2010 engines are exempt from being tested for the PSIP until January 1 of 2014). A 2010 model year engine must be tested sometime during 2014 or it will be in violation of PSIP). The Periodic Smoke Inspection "Fleet" Program serves as a companion to the Heavy-Duty Diesel Inspection "Roadside" program, to ensure that all of California’s heavy-duty vehicles are properly maintained, tamper free and free from excessive smoke. Heavy-duty diesel-powered vehicles that are not part of a fleet or are exclusively for personal use are exempt. To ensure compliance, the Air Resources Board will randomly audit fleets’ maintenance and inspection records, and test a representative sample of vehicles. All vehicles that do not pass the test must be repaired and retested. Fleet owners who neglect to perform the annual smoke opacity inspection on applicable vehicles are subject to penalties of $500.00 per vehicle, per year. For more information visit  http://www.arb.ca.gov/enf/hdvip/psip_pamphlet.pdf

  

Driver Safety Management System


What is the Driver Safety Measurement System (DSMS)?


The DSMS is a tool within the SMS used by enforcement staff only. Its primary purpose is to help enforcement staff assess driver safety as part of motor carrier investigations. The DSMS does this by identify-ing which of a motor carrier’s drivers to examine during that carrier’s compliance review. This enforcement tool uses a subset of violations to evaluate an individual driver’s safety performance across employers. Appendix A in the SMS Method-ology Report shows (http:// csa2010.fmcsa. dot.gov/ documents/ smsmethodology.pdf ) the violations used in the DSMS.
Who can view the DSMS?
Only enforcement staff will have access to the DSMS for use during motor carrier safety investigations. Neither drivers nor employing motor carriers will have access to the DSMS. While some third party vendors are developing and marketing CSA 2010 driver scorecards, these companies do not have access to full driver violation histories in FMCSA databases. Based upon FMCSA official reports, the FMCSA will not validate any vendors’ scorecard or data. For more information on commercial truck drivers contact Brent Thunstrom at brent@covermybigrig.com

Friday, October 21, 2011

The Auto Insurance Scam

Automobile Insurance fraud in California Insurance has existed ever since the beginning of insurance as a commercial enterprise. Fraudulent claims account for a significant portion of all claims received by insurers, and cost billions of dollars annually. Types of insurance fraud are very diverse, and occur in all areas of insurance. The Automobile Property fraud involves dishonest auto body and repair shops and/or insureds who may employ a variety of illegal or questionable techniques including: Reporting parts of vehicles as damaged or lost when in fact they were not damaged or lost prior to the shop receiving the vehicle, billing for repairs that were not authorized, making final cost in excess of the original estimate of damage, charging for genuine parts when after-market or used parts from junkyard were used, pounding out dents or using bondo when charging for brand new auto parts, falsely reporting stolen vehicles or vandalism of vehicles in order to collect insurance monies.

What Could Happen If I Drive Without Insurance?

Driving in California without insurance is a serious offense. California’s compulsory financial responsibility law requires coverage at all times. Failure to show evidence of insurance when asked may result in fines, license suspension or your vehicle may be impounded. The most common way to comply with the financial responsibility is to purchase automobile liability insurance. It is your responsibility to carry proof of insurance at all times. You must show one of the following types of financial responsibility: a $35,000 surety bond; a DMV issued self-insurance certificate; DMV acknowledgement of a $35,000 cash deposit; or a valid liability insurance policy, for damage to someone else’s property or person.

Other Available Insurance Coverage

Insurance companies  offer other coverage with every automobile policy. The Uninsured/Underinsured Motorist provides liability when the party at fault does not have the state required coverage or does not have sufficient to cover the injuries caused in the accident. Similarly, the Uninsured Motorist Property Damage covers possible reimbursement for damages your car sustains. The Medical Payments covers the medical expense incurred without question of legal liability. Collision and Comprehensive Physical Damage pay for the cost of repairs or the fair market value of the vehicle. Collision covers only the damage to your vehicle cause by collision with another vehicle or with any other object, regardless of fault. Comprehensive coverage covers the damage to your car, other than collision, such as theft, vandalism, fire, windstorm, flood, etc. The Endorsements/Riders coverage includes additional special equipment (such as premium stereos, tires, etc.) as well as towing and rental reimbursement.

Choosing the Right Insurance Agent

When you are looking for the right insurance agent, it may be as important as choosing the right doctor. Your best resources are your relatives, neighbors, co-workers, as well as professional agent/broker associations. As of January 1, 1997, all agent/brokers are required to include their license number on their business cards. You may wish to verify the producer’s license status by going on the California Department of Insurance (CDI) Web site at www.insurance.ca.gov, or call the consumer Hotline at 1-800-927-4357. This way you can confirm that your agent/broker and insurer are licensed to conduct business in the state of California. It is critical that you feel comfortable with the agent of your choice. You need to be able to openly discuss the coverage and services that will best suit your needs. Remember that it is not the responsibility of the agent/broker to determine either the type or the amount of coverage you need, so good communication is key. Certain insurance companies specialize in the non-standard auto market for what they consider to be high-risk drivers.  If you can’t find a company that will insure you, you can get liability coverage through the California Automobile Assigned Risk Plan (CAARP). This plan is designed for drivers who do not qualify as good drivers and are unsuccessful in obtaining insurance from non-standard or approved surplus lines insurance companies. However, be aware that the eligibility requirements and rates vary. To apply, find a CAARP certified insurance agent/broker on CAARP’s Web site at www.aipso.com or call CAARP direct at (800) 622-0954. Your application is then assigned to an insurance company. Keep in mind that the rates will be the same no matter what insurance company issues the policy. After three years with a clean driving record, consumers underwritten through CAARP can move from the program to a standard lines insurance company.

I Just Had an Accident! Now What?

Driving is presumably the most dangerous thing most of us will ever do. Even though, we strive to do so responsively and defensively, there’s still a chance you’ll be involved in a traffic accident. So what do you do in case of such event?

Call 911 if there are injuries. Call the police, depending on the severity and location, police authorities may not come to every accident scene. However, you should attempt to notify the police. Be aware that most policies require notification of police within a specified time period if the accident is a hit and run. Obtain name, addresses, telephone numbers, and driver’s license numbers from all drivers. Make sure to get license plate(s) and vehicle identification numbers and ask to see driver’s license(s) and vehicle registration(s) to verify the information. Obtain contact information of other passengers and/ or any witnesses. Do not argue with other drivers and passengers, but rather save your story for the police and your insurance company. Do not sign any statements regarding fault or promises to pay for the damage. If the other driver(s) offers to pay for your deductible, do not sign anything releasing the other party from further responsibility. If you have a camera or a cell phone, take photographs of the damage, the position of the cars, and the accident scene. If the owner of the damaged property/vehicle is absent, leave a note with the names and addresses of the owners and drivers of the involved car. Notify your insurance agent and/or your insurance company immediately. If anyone is injured or the vehicle damage exceeds $750.00, report the accident to the Department of Motor Vehicles within 10 days. Failure to do so may result in the suspension of your driver’s license.


After you have filed the claim with your insurance company, they will contact you for any additional information, such as a detailed account of the facts, or a written/recorded statement. As part of the investigation, other drivers and witnesses may be contacted. If you have medical payments or an uninsured motorist claim, you must provide documentation of the injuries. Sometimes, the insurance company can take up to 15 days to contact the insured. However, if they are not responsive, or you believe there is an unreasonable delay in settling your claim, contact the Department of Insurance.


If you were in an accident, a qualified insurance adjuster or appraiser usually inspects the vehicle damage. An estimate is written based on the initial inspection. If further damage is found, the shop will contact the insurer to get the additional cost of repairs approved. An adjuster may be sent to re-inspect the additional damages. If there are minor damages, the company may instead ask you to submit competitive repair estimates. It is your responsibility to sign and authorize the shop to repair your vehicle once you are satisfied with the final estimate and repair facility. Under a Standard Auto Policy, the company will pay on a Physical Damage Claim, the lesser amount necessary for the repair or the actual cash value (ACV) of the vehicle. Review your policy to be certain of what’s covered.