New Rules in 2010

Effective July 2010, the FMCSA will implement a new safety measurement system for motor carriers and drivers through the Comprehensive Safety Analysis (CSA) 2010 initiative. The CSA2010 model provides the FMCSA and state partners the opportunity to monitor, assess, and enforce safety compliance to a larger segment of the industry before unsafe behaviors become habitual. The four elements of CSA2010 include a safety measurement system (SMS), progressive intervention, a safety fitness determination (SFD) evaluation, and the information technology system COMPASS.

David M. Golden, senior director/commercial lines at Property Casualty Insurers Association of America in Des Plaines, Ill., stated, "The FMCSA is taking more of a proactive, insurance loss prevention approach rather than a reactive, crash-based, regulatory approach. SMS uses all roadside data, not just out-of-service and acute/critical violations. SMS proactively targets motor carriers for appropriate levels of intervention based on behavior trends. The results should be fewer truck crashes and more lives saved. Since PCI's members insure both trucks and cars that have to share the same roads, we applaud FMCSA's refocused use of existing tools to get enhanced results."

A field test for CSA2010 began in February 2008 in Colorado, Georgia, Missouri, and New Jersey. The early success of CSA2010 requires the FMCSA to qualify and normalize the integrity of the data analyzed in the SMS. The American Trucking Association submitted the following positive recommendations to the FMCSA on Jan. 28, 2009:

o Obtain commitment from all state partners to agree on and implement standard violation codes.

o Build positive credits into the system for motor carriers making investments in progressive safety management.

o Include positive data from roadside inspections when no violations are found.

o Measure the exposure for Crash BASICS by vehicle miles traveled rather than the number of power units, to counteract a statistical bias against smaller carriers.

The SMS will group the data into seven Behavioral Analysis Safety Improvement Categories (BASICs). Carl R. Sadler, president of Transportation Insurance Consultants, LLC, in Wayne, Penn., commented, "The CSA2010 groupings are both more refined and more behavior-related. Improved information in the hands of responsible motor carriers will result in better safety performance."

Golden concurred, stating, "Four of the seven BASIC categories concentrate on the driver, and the driver is most often the key to reducing accidents. The new SMS gathers more proactive, risk-based information than the current system. This should help underwriters evaluate risk of loss before accidents pile up. It will also help insurers work with their insured truckers to address behavior trends before they result in serious accidents."

The Seven BASICS

1 Driver Fitness – Operation of commercial motor vehicles (CMV) by drivers who are unfit to operate a CMV due to a lack of training, experience, or medical qualification. Data sources include: 1) roadside inspection violations for failure to have a valid and appropriate commercial driver's license, or medical or training documentation; 2) crash reports citing a lack of experience or medical reason as a cause or contributing factor; 3) compliance review violations for failure to maintain proper driver qualification files or use of unqualified drivers.

2 Unsafe Driving – Dangerous or careless operation of commercial motor vehicles. Data sources include driver traffic violations and convictions.

3 Fatigued Driving – Driving commercial motor vehicles when fatigued. Data sources include: 1) hours-of-service violations; 2) crash reports with driver fatigue as a contributing factor.

4 Controlled Substances and Alcohol – Operation of a CMV while impaired or in possession of alcohol, illegal drugs, or any other substance that renders the driver incapable of safely operating a CMV. Data sources include: 1) roadside inspection violations involving controlled substances or alcohol; 2) crash reports citing driver impairment or intoxication as a cause; 3) positive drug or alcohol test results on drivers; 4) lack of appropriate testing or other deficiencies in motor carrier controlled substances and alcohol testing programs.

5 Vehicle Maintenance – Failure of a CMV due to improper or inadequate maintenance. Data sources include: 1) roadside inspection violations for brakes, lights, and other mechanical defects; 2) crash reports citing a mechanical failure as contributing factor; 3) compliance review violations associated with pre-trip inspections, maintenance records and repair records.

6 Improper Loading/Cargo Securement – Shifting loads, spilled or dropped cargo, and unsafe handling of hazardous materials. Data sources include: 1) roadside inspection violations pertaining to load securement, cargo retention and hazardous material hauling; 2) crash reports citing shifting loads or spilled/dropped cargo as a cause or contributing factor.

7 Crash/ Incident Experience – Histories or patterns of high crash involvement, including frequency and severity; miles carrier logs versus number of accidents. Data sources include law enforcement crash reports and crashes reported by the carrier discovered during on-site investigations.

CSA2010 will hold both carriers and drivers accountable for sustained performance by regularly determining their safety fitness every 30 days via the Carrier Safety Measurement System and the Driver Safety Measurement System. The SFD will assign a preliminary rating of Continue to Operate, Marginal, or Unfit to Operate. If the evaluation determines the carrier or driver to be marginal or unfit, it triggers the intervention process, which involves a series of formal steps leading to corrective action: 1) warning letter; 2) targeted roadside inspection; 3) off-site investigation; 4) on-site investigation; 5) cooperative safety plan; 6) notice of violation; 7) notice of claim; 8) consent agreement leading to 9) unfit suspension.

The transportation industry has adopted the concept of the FMCSA's initiative to improve safety on our highways. The technology systems applied within this model provide regulators the tools to effectively respond to carriers that receive an Unsatisfactory rating from evading compliance and re-opening under a new name, often using the same address, owner's name, employees and contact numbers.

It is important to communicate with your insureds and advise them that their decisions today regarding driver selection and quality control in vehicle maintenance that contribute to safety deficiencies will be evaluated when CSA2010 is implemented in Florida.

Erin K. O'Leary is a vice president at Shelly, Middlebrooks & O'Leary, Inc. in Jacksonville, and serves on the Board of Directors of the Florida Surplus Lines Association. She may be reached at 800-342-2498 or [email protected]. Company information is available at www.shellyins.com.