1

By

Johnny Schrunk

“The Nations #1 Trucking Business Coach”

All Rights Reserved. ©2009

2

The Essential Elements of

Safety & Security

The Essential Elements of

Safety & Security

Regulatory Insurability

Risk Control

20092009

3

Regulations..errrrRegulations..errrr FMCSRFMCSR OSHA RecordkeepingOSHA Recordkeeping

4

Federal Motor Carrier Safety Regulations

Federal Motor Carrier Safety Regulations

Driver Qualification & Selection Drug & Alcohol Testing Hours of Service Regulatory Updates Compliance

5

The Qualification ProcessThe Qualification Process

Requirements Application Background Checks

Employment History Drug/Alcohol History

Motor Vehicle Records Drug Test & Physical Exam Testing & Training

6

Minimum Requirements for Driver Qualifications

Minimum Requirements for Driver Qualifications

Written form Minimum age Minimum experience MVR standards

Meet or exceed DOT requirements Meet or exceed insurance company

standards Followed without exception

7

The ApplicationThe Application

Completed in its entirety Must list:

All employers in past 3 years All commercial driving experience for the 7

years preceding this 3-year period All accidents & violations in past 3 years All other required information

8

Background Checks:Employment History

Background Checks:Employment History

Investigation must be made within 30 days of the date employment begins

Written record Past employer’s name &

address Date of contact Comments made

regarding the driver

9

Previous employers for prior 2 years Driver’s written authorization Inquire about:

Alcohol test results of 0.04 alcohol concentration or greater

Positive drug test results Refusals to test Positive pre-employment tests

Background Checks:Drug/Alcohol History

Background Checks:Drug/Alcohol History

10

Motor Vehicle RecordsMotor Vehicle Records

Pre-hire Obtained within 30 days of qualification Kept while driver is employed

Annual Annual reviews kept for 3 years

11

10 Basic Rules of Employee Recruiting

10 Basic Rules of Employee Recruiting

1. If you DO NOT need new employees, DO NOT recruit & accept applications.

2. If you DO need new employees, first recruit from within.

3. Give all prospective applicants an equal opportunity for selection.

4. Accept only official company employment application forms.

5. Ensure that your employment application is legally sound & protects your interests.

12

10 Basic Rules of Employee Recruiting (cont’d)

10 Basic Rules of Employee Recruiting (cont’d)

6. Interviewers trained to ask the right questions

a. Avoid questions about: Race Religion National origin Sex Age Disability

13

7. Conduct background investigations & reference checks.

8. Evaluate candidates on objective criteria.9. Ensure the right person(s) make the final

decision.10. Be consistent & fair throughout the

process.

10 Basic Rules of Employee Recruiting (cont’d)

10 Basic Rules of Employee Recruiting (cont’d)

14

How to Attract QUALITY DriversHow to Attract QUALITY Drivers

REFERRALS Advertising Recruitment Firms/Employment

Agencies Johnny’s SOCIAL MEDIA MATRIX

15

Employee ScreeningEmployee Screening

Preliminary Interviews Written Applications

Consistent policy for unsolicited employment inquiries

Accept only applications on company-approved forms (no resumes)

Time limit on considering applications

Planned or Scheduled Interviews

16

Interviewing GuidelinesInterviewing Guidelines

Be prepared Be a DAMN GOOD

listener Be consistent Be objective Interview defensively Hire Offensively USE PROFILING!!!

17

Negligent Entrustment…bad dealNegligent Entrustment…bad deal

Entrusting a vehicle to someone without completing proper steps

Closely related to: Respondeat Superior = Holds employer

responsible for the conduct of an employee Negligent Hiring = Failure to check for a poor

driving record

18

Negligent Entrustment IssuesNegligent Entrustment Issues

In a case alleging Negligent Entrustment: Driver must be incompetent Employer knew or should have known this

incompetence Employer entrusted the vehicle to the driver Driver was negligent on the occasion in

question Driver’s negligence caused the crash

19

What Makes a Driver Competent? After all, common sense is not that common today!

What Makes a Driver Competent? After all, common sense is not that common today!

FMCSR driver requirements: Legal driving age for the state where license

issued Able to read & speak English Able to safely operate the vehicle Able to safely load & secure the cargo Good health/physically able to operate vehicle Holds a valid driver’s license Completed application form for employment Pass a driving test for the type of vehicle to be

operated No CDL Disqualifications

20

CDL DisqualificationsCDL Disqualifications Driving CMV while under influence of controlled

substance or alcohol Alcohol concentration of 0.04% or more As prescribed by state law Refusal to undergo testing

Transportation, possession or unlawful use of controlled substance or drugs

Leaving the scene of an accident while operating a CMV

Committing a felony involving the use of a CMV Violating out-of-service orders Convicted of 2 or more “serious traffic violations”

in less than 3 years

21

Knowledge of Driver’s Incompetence

Knowledge of Driver’s Incompetence

Employment record Driver’s background Driving record You are negligent if:

Records are missing or incomplete Records show poor driving history

22

Proof of Vehicle EntrustmentProof of Vehicle Entrustment

Driver was within the scope of job duties Vehicle not taken without permission

23

Was the Driver Negligent?Was the Driver Negligent?

Accident scene investigation Interviews with involved parties &

witnesses Other evidence

Citations

24

Did Driver Negligence Cause Crash?

Did Driver Negligence Cause Crash?

Citation Criminally charged Otherwise ruled “at-fault”

25

Ways to Reduce ExposuresWays to Reduce Exposures

Driver recruiting & selection practices New hire evaluation & orientation Ongoing driver reviews & training Post-accident reviews & training

26

Other Exposures to Negligent EntrustmentOther Exposures to

Negligent Entrustment

Loans of vehicles to non-employees Contracted employees

Security guard Maintenance contractor Owner/operator under your authority Temporary employee from employment

service

Trip leasing

27

Drug & Alcohol TestingDrug & Alcohol Testing

Part 40 Revisions Violations Substance Abuse Professional (SAP) Return-to-Duty Process

28

Part 40 RevisionsEffective January 18, 2001

Part 40 RevisionsEffective January 18, 2001

Validity Testing MRO review of substitution and adulteration

test results & split specimen testing

Public Interest Exclusions (PIE) Protects public from the effects of serious non-

compliance by service agents

29

Part 40 RevisionsEffective August 1, 2001Part 40 Revisions

Effective August 1, 2001

Validity Testing All specimens

Stand-Down Temporary removal of employees from safety-sensitive

duties after a MRO-confirmed positive, adulterated or substituted test result

Training Enhanced training requirements for collectors, BATs,

STTs, MROs & SAPs Refresher training every 5 years for collectors, BATs &

STTs Continuing education for MROs & SAPs

30

Part 40 RevisionsEffective August 1, 2001 (cont’d)

Part 40 RevisionsEffective August 1, 2001 (cont’d)

Laboratory Process Initiate validity testing on all specimens

Medical Review Officer (MRO) Prohibits MRO & laboratory relationship which may

create a conflict of interest Required to personally conduct a verification interview

with employee

Alcohol Testing New Breath Testing Form Procedures to correct problems in the testing process

31

Part 40 RevisionsEffective August 1, 2001 (cont’d)

Part 40 RevisionsEffective August 1, 2001 (cont’d)

Substance Abuse Professional (SAP) & Return-to-Duty Process Required education and/or treatment program for all

positive tests & refusals to test

Other Issues Employers required to obtain drug & alcohol testing

information from an applicant’s employers in the past 2 years

“Blanket Releases” still prohibited

32

Drug/Alcohol Rule ViolationsDrug/Alcohol Rule Violations

Verified positive drug test result DOT alcohol test result of 0.04 or greater Refusal to test Violation of drug/alcohol use under a DOT

agency regulation

33

Employer ResponsibilitiesEmployer Responsibilities

Provide a listing of available SAPs Driver cannot perform safety-sensitive

duties until SAP evaluation, referral & education/treatment completed

34

Substance Abuse Professional (SAP)Substance Abuse Professional (SAP)

Who is qualified? A licensed physician (Doctor of Medicine or

Osteopathy) A licensed or certified social worker A licensed or certified psychologist A licensed or certified employee assistance

professional A certified drug and alcohol counselor

35

Substance Abuse Professional (SAP)Substance Abuse Professional (SAP)

Any other requirements? Basic knowledge Qualification training Continuing education Documentation

36

Return-to-Duty ProcessReturn-to-Duty Process

SAP Evaluation SAP referral to appropriate

education and/or treatment program

Completion of prescribed program

Return-to-duty test “Fitness for duty”

determination by employer

37

Follow-Up TestsFollow-Up Tests

SAP functions Written follow-up testing plan presented to

Designated Employee Representative (DER) Determines the frequency & types of tests Requires 6 unannounced tests in the first 12

months of safety-sensitive duty

38

Follow-Up TestsFollow-Up Tests

Employer responsibilities Carry out SAP testing plan Schedule testing dates

Unannounced & without advance notice

Other tests cannot be substituted (i.e. random testing program)

A cancelled follow-up test does not count as completed

39

Hours of Service RulesHours of Service Rules

CMV drivers using the sleeper berth provision must take at least 8 consecutive hours in the

sleeper berth, plus 2 consecutive hours either in the sleeper berth, off duty, or any combination of

the two.

Commercial motor vehicle (CMV) drivers using a sleeper berth must take 10 hours off duty, but

may split sleeper-berth time into twoperiods provided neither is less than 2 hours.

No ChangeMay not drive after 60/70 hours on duty in 7/8 consecutive days.

► A driver may restart a 7/8 consecutive day period after taking 34 or more consecutive

hours off duty.

No ChangeMay not drive beyond the 14th hour after coming on duty, following 10 consecutive hours off duty.

No ChangeMay drive a maximum of 11 hours after10 consecutive hours off duty.

HOURS-OF-SERVICE RULESHOURS-OF-SERVICE RULES

2005 RuleProperty-Carrying CMV DriversCompliance On & After 10/01/05

2003 RuleProperty-Carrying CMV DriversCompliance Through 09/30/05

Short-Haul Provision for non-CDL vehicles within a 150 air mile radius added.Allows two 16 hr days in a 7 day period, no logbook required

provided motor carrier maintains time records.

40

Exemptions to RulesExemptions to Rules

100-Air mile radius Exempt from keeping a logbook if they meet the

following 5 requirements found in the regulation:

Remains within 100 air miles (115.08 statute miles) of their work reporting location.

Returns to the work reporting location within 12 consecutive hours of going on duty

Released within 12 hours, the driver must be afforded 10 consecutive hours off duty

May not drive more than 11 hours during the 12 hour period

41

100 air-mile radius driver395.1(e)(1) (cont.)

100 air-mile radius driver395.1(e)(1) (cont.)

The motor carrier that employs the driver maintains and retains, accurate and true time records that indicate:

1. The time the driver begins to work;

2. The total number of hours the driver works;

3. The time the driver is released from work;

4. And the preceding 7 days of work activities (time records) for drivers used the first time or intermittently

42

Short - haul OperationsNon CDL, 150 air mile

radius395.1(e)(2)

Short - haul OperationsNon CDL, 150 air mile

radius395.1(e)(2)

Drivers of Non-CDL vehicles are exempt from keeping a log if they meet the following requirements found in the regulation:

Operates within 150 air mile radius (172.6 statute miles) of where driver reports to and is released from work (normal work reporting location).

Returns to normal work location and is released at the end of each duty tour (14 or 16 hrs).

Has at least 10 consecutive hours off separating each on-duty period.

May not drive more than 11 hours following 10 hours off duty.

43

Non CDL, 150 air mile radius395.1(e)(2) (cont.)

Non CDL, 150 air mile radius395.1(e)(2) (cont.)

The driver does not drive;(A) After the 14th hour after coming on duty on 5

days of any period of 7 consecutive days; and(B) After the 16th hour on 2 days of any period of 7

consecutive days

The motor carrier maintains and retains for 6 months true and accurate time records(The same as those required for the 100 air mile

radius driver)

44

Management of Hours of ServiceManagement of Hours of Service

Record retention - 6 months Auditing logs

Log for every day Completion of logs/trip records Falsification of logs Logs to home terminal - 13 days Form & manner Accurate mileage Check for speeding Check for Hours violations

45

Compliance with RegulationsCompliance with Regulations

Enforcement Tools SAFER System SafeStat System

Inspections CVSA (Roadside) FMCSA Compliance Reviews

Safety Fitness

46

SAFER SystemSAFER System

Safety And Fitness Electronic Records System

www.safersys.org “Snapshot” - condensed Carrier Profile

Location Identification Numbers Type Commodities carried/shipped Inspection Summary Crash Summary Safety Rating

47

Carrier Snapshot

ABC TRUCKING, INC. USDOT#: 000000

ID/Operations | Inspections/Crashes | Safety Rating | Insurance Carriers: If you would like to update the following ID/Operations information, please complete and submit form MCS-150 which can be obtained online or from your State FMCSA office. Carriers and other users: If you would like to request more detailed information in the form of a MCMIS Carrier Profile please call (800)832-5660 or (703)280-4001 (Fee Required). For help on the explanation of individual data fields, click on any field name or for help of a general nature click here. The information below reflects the content of the FMCSA management information systems as of 12/29/2001.

Entity Type: Carrier Status: Active

Legal Name: ABC TRUCKING, INC

DBA Name:

Physical Address: 111 ANY STREET SOMEWHERE, XX 00000

Phone: (800) 000-0000

Mailing Address: P.O. BOX 123 SOMEWHERE, XX 00000

USDOT#: 000000 State Carrier ID#:

MC or MX #: 000000

DUNS #: --

Power Units: 50 Drivers: 45

Operation Classification:

X Auth. For Hire

Exempt For Hire

Private(Property)

Priv. Pass. (Business)

Priv. Pass.(Non-business)

Migrant

U.S. Mail

Fed. Gov't

State Gov't

Local Gov't

Indian Nation

Carrier Operation:

X Interstate Intrastate Only (HM) Intrastate Only (Non-HM)

HM Shipper Operation:

Interstate Intrastate

Other Information for this Carrier

SafeStat Results

Licensing & Insurance

Cargo Carried:

X General Freight

Household Goods

X Metal: sheets, coils, rolls

Motor Vehicles

Drive/Tow away

X Logs, Poles, Beams, Lumber

X Building Materials

Mobile Homes

Machinery, Large Objects

X Fresh Produce

Liquids/Gases

Intermodal Cont.

Passengers

Oilfield Equipment

Livestock

X Grain, Feed, Hay

Coal/Coke

X Meat

Garbage/Refuse

X US Mail

Chemicals

Commodities Dry Bulk

X Refrigerated Food

X Beverages

X Paper Products

Utilities

Agricultural/Farm Supplies

Construction

Water Well

HazMat Status: (C=Carry S=Ship)

C S Division/Class

Div 1.1

Div 1.2

Div 1.3

Div 1.4

Div 1.5

Div 1.6

Div 2.1

Div 2.1 (LPG)

Div 2.1 (Methane)

Div 2.2

Div 2.2a (Ammonia)

Div 2.3

Div 2.3a

Div 2.3b

C S Division/Class

Div 2.3c

Div 2.3d

Class 3

Class 3a

Class 3b

Combustible Liquid

Div 4.1

Div 4.2

Div 4.3

Div 5.1

Div 5.2

Div 6.1 Poison

Div 6.1 Solid

Div 6.1a

C S Division/Class

Div 6.1b

Div 6.2

Class 7

HRCQ

Class 8

Class 8a

Class 8b

Class 9

Elev. Temp. Mat.

Infectious Waste

Marine Pollutants

Hazardous Sub(RQ)

Hazardous Waste

ORM

48

ID/Operations | Inspections/Crashes | Safety Rating | Insurance Operating Authority and Insurance Information is updated nightly. For the most current information, go to FMCSA Licensing & Insurance site. Insurance Information last updated: 01/02/2002 Docket Number(s): MC000000

Name on Operating Authority Documents: ABC TRUCKING, INC. Docket #: MC000000 Operating Authority Status:

Common Authority Contract Authority Broker Authority

None Active Active

Insurance Requirements and Status:

Liability Insurance Cargo Insurance Bonds or Trust Fund

Required: $1,000,000 OK

Not Required

Required OK

Insurance Profile (For-hire carriers only):

Insurance Type

Insurance Carrier

Policy Number

Effective Date

Coverage Amount

Liability A-1

INSURANCE CO.

XXXXXXX 11/05/1999 $0 - $1,000,000

Bond or Trust Fund

NATIONAL BANK NONE 12/02/2001

* If a carrier is in compliance, the amount of coverage will always be shown as the required Federal minimum ($5,000 for cargo insurance and $10,000 for bond/trust fund). The carrier may actually have higher levels of coverage.

ID/Operations | Inspections/Crashes | Safety Rating | Insurance Inspection results for 24 months prior to: 12/29/2001 Total inspections: 567 Note: Total inspections may be less than the sum of vehicle, driver, and hazmat inspections. Click here for further information. Inspections:

Inspection Type Vehicle Driver Hazmat

Inspections 228 339 0

Out of Service 65 59 0

Out of Service % 28.5% 17.4% 0%

Nat'l Average %(1999) 24.3% 8.3% 7.5%

Crashes reported to FMCSA by states for 24 months prior to: 12/29/2001 Crashes:

Type Fatal Injury Tow Total

Crashes 0 3 1 4

ID/Operations | Inspections/Crashes | Safety Rating | Insurance Carrier Safety Rating: The rating below is current as of: 12/29/2001 Review Information:

Rating date:

03/10/2001 Date: 03/06/2001

Rating: Conditional Type: Compliance Review

49

SafeStat System (Safety Status) SafeStat System (Safety Status)

www.ai.volpe.dot.gov Identifies carriers for Safety Improvement

Programs 4 Safety Evaluation Areas (SEAs)

Accident SEA Driver SEA Vehicle SEA Safety Management SEA

50 5050

SafeStat ScoringSafeStat Scoring

Value from 0-100 determined for all carriers with sufficient data in each SEA

Value of 75-100 = Deficient Carriers must be deficient in at least 2

SEA’s to have an Overall SafeStat Score FMCSA Compliance Reviews

51

US DOT #: 000000 MC #: 000000 Carrier Name: ABC TRUCKING INC Latest SafeStat Results: September 22, 2001

(next update March 2002)

Carrier Information

Carrier Name ABC TRUCKING INC DBA

Address 111 ANY STREET SOMEWHERE, XX 00000

Mailing Address P.O. BOX 123 SOMEWHERE, XX 00000

Telephone (800) 000-0000 Fax (800) 000-0001

Number of Power Units 50 Number of Drivers 45 HM Registered No

Date of Last FMCSA Compliance Review 03/06/2001 Date of Last

MCS-150 Update

SafeStat Summary Results SafeStat Score Category State/National Rank

482.96 A 1 / 1

ISS-2 Safety Results Recommendation Inspection Value

INSPECT 100 Other Information for this Carrier

Licensing & Insurance

SAFER - Carrier Snapshot

FMCSA Do-It-Yourself Website (Resource Information)

Calculation of SafeStat Score

482.96 85.45 91.02 80.84 94.69

SafeStat calculates a SafeStat score to rank carriers in descending order by their safety status (i.e. a carrier with the highest SafeStat score is the first ranked carrier in terms of poor safety status). SafeStat does not assign SafeStat scores to all carriers. To obtain a SafeStat Score, a carrier must be deficient in at least two different Safety Evaluation Areas (SEAs). A SEA with a value from 75 to 100 is defined as deficient (highlighted in Bold type). SEA Values that are less than 75 are not used in the calculation of a SafeStat Score.

Sample SafeStat Report

Sample SafeStat Report

52

Accident SEA Value: 85.45

Compliance Review Results (within 12 months) State Reported Crashes

(within 30 months)

Measures and Indicators

Recordable Accident Indicator (RAI) 28.7 Accident Involvement Indicator (AII) 85.5

Recordable Accident Measure (RAR) 0.904 Accident Involvement Measure (AIM) 0.491

Summary Event Data

Date of Review 07/13/2001 Number of State Reported Crashes 11

Number of Vehicle Miles Traveled 4,426,731 Number of Crashes Resulting in Fatalities 0

Number of Recordable Crashes 4 Number of Crashes Resulting in Injuries 6

Number of Power Units 53

State Reported Crashes (within 30 months)

Crash Date

Report State

Report Number

Location Fatalities Injuries Driver

License State

Vehicle Identification Number

Vehicle Plate

Number

1 7/16/2001 IA 2001040018 1ST AVENUE & A STREET

0 2 IA 1XXXXXXX00XX00000 00000

2 12/28/2000 FL 5411830601 0 4 KS 1XXXX00X0XX0X0000 00000

3 9/6/2000 IA 000047172B 0 0 4X0XXXXXXXX000000 00000

4 4/28/2000 IA 000022351C 0 1 S0000000 XX000

5 11/20/1999 TX 009275160A 0 0 VA 1XX000

6 10/28/1999 IL 0007324289 0 2 ID XXXXXXXX0XXX00000 X00000

7 10/11/1999 NJ 0009910504 0 0 PA 1XXXXX0XXXX000000 X00000

8 10/11/1999 NJ 9926859802 0 0 PA 1XXXXX0X0XX000000 X00000

9 5/19/1999 NE 199040629A 0 1 NE 1XXXXX0X0XX000000 X00000

10 4/27/1999 LA 001184234A 0 0 NE 1XXXX00X0XX000000 X00000

11 4/7/1999 KY 000031553A 0 1 IA 1XX0XX0XXXX000000 X00000

53

D r i v e r S E A V a l u e : 9 1 . 0 2

C o m p l i a n c e R e v i e w R e s u l t s ( w i t h i n 1 8 m o n t h s ) D r i v e r I n s p e c t i o n R e s u l t s

( w i t h i n 3 0 m o n t h s ) M o v i n g V i o l a t i o n R e s u l t s ( w i t h i n 3 0 m o n t h s )

M e a s u r e s a n d I n d i c a t o r s D r i v e r R e v i e w I n d i c a t o r ( D R I ) 0 . 0 D r i v e r I n s p e c t i o n I n d i c a t o r ( D I I ) 9 1 . 0

M o v i n g V i o l a t i o n I n d i c a t o r ( M V I ) 8 0 . 7

D r i v e r R e v i e w M e a s u r e ( D R M ) 0

D r i v e r I n s p e c t i o n M e a s u r e ( D I M ) 0 . 3 8

M o v i n g V i o l a t i o n M e a s u r e ( M V M ) 2 . 0 5

S u m m a r y E v e n t D a t a

D a t e o f R e v i e w 0 3 / 0 6 / 2 0 0 1 N u m b e r o f D r i v e r I n s p e c t i o n s 3 3 9 N u m b e r o f M o v i n g V i o l a t i o n s 4 5

N u m b e r o f C r i t i c a l V i o l a t i o n s

0 N u m b e r o f O O S I n s p e c t i o n s 5 9 N u m b e r o f D r i v e r s 3 8

N u m b e r o f A c u t e V i o l a t i o n s 0

N u m b e r o f I n s p e c t i o n s w / O O S O r d e r V i o l a t i o n 0

D r i v e r O O S R a t e ( D O R ) 0 . 1 7 4

S e l e c t D e t a i l D a t a :

54

Driver OOS Inspections (within 30 months)

Inspection Date Report State Report Number Inspection Level Driver OOS Violations

1 8/2/2001 NE DL00000069 3 1

2 7/24/2001 IA 000T01G6P1 1 1

3 7/13/2001 MO 00C6001854 3 1

4 6/27/2001 OH 00LX301175 2 1

5 6/26/2001 IL 0001137724 1 1

6 6/22/2001 MO 00M1065320 1 1

7 6/19/2001 IA 000T010UHV 3 1

8 5/27/2001 CA 00900110FF 1 3

9 5/15/2001 UT CH50000596 3 1

10 5/5/2001 IN 0000997074 3 1

11 4/21/2001 KS 00WB002305 3 1

12 4/16/2001 NM 0000410667 3 1

13 4/9/2001 IA 000T01118A 2 1

14 3/24/2001 MO 00M1072406 2 1

15 3/11/2001 KS 00BH000104 2 1

16 3/6/2001 AZ 006A000488 2 3

17 3/1/2001 PA 00DY000653 3 1

18 2/20/2001 MO 00H8000222 2 1

19 2/7/2001 IA 000T0240ZC 2 1

20 1/22/2001 NY 00AQ003250 1 2

21 12/14/2000 TN 00HA008246 2 1

22 11/13/2000 GA 0000A04061 3 2

23 11/9/2000 IL 0001109405 2 1

24 10/27/2000 IA 000P770668 3 1

25 8/28/2000 NC 0007003412 2 1

26 8/9/2000 IA 000T081713 1 1

27 8/7/2000 PA 0000569529 1 1

28 8/5/2000 MO 00C6000550 2 1

29 7/17/2000 CA 00223046D5 1 1

30 6/30/2000 MD 00CC000016 3 2

31 6/29/2000 KS 0000231077 2 1

32 6/1/2000 IA 000P738755 3 1

33 6/1/2000 OR 00XK000005 2 1

34 4/29/2000 UT 00CO100240 2 3

35 4/3/2000 CO 00AV002531 3 1

36 3/22/2000 IA 000T092309 2 1

37 3/7/2000 FL 0059600415 3 1

38 3/2/2000 CT 00A-082780 1 1

39 2/25/2000 IA 000P756277 2 1

40 2/18/2000 WY 0067200050 3 2

41 2/16/2000 MO 00M1016751 1 1

42 11/24/1999 IA 000T02CD13 2 1

43 11/16/1999 MS 0030601935 2 2

44 11/5/1999 CA 0003383271 2 1

45 10/28/1999 AZ 00MV029353 2 1

Driver OOS InspectionsDriver OOS Inspections

55

Driver OOS Violation Summary

(within 30 months)

Violation Number

Description Number of OOS Violations

Number of Inspections

383.23A2 OPERATING A CMV WITHOUT A CDL 2 2

391.15A DRIVING A CMV WHILE DISQUALIFIED 5 5

392.2 LOCAL LAWS (GENERAL) 1 1

392.5A POSS/USE/UNDER INFLNCE ALCOHOL-4HR PRIO DUTY 4 2

392.9 DRIVER LOAD SECURE 1 1

392.9A2 FAILING TO SECURE VEHICLE EQUIPMENT 3 3

395.1I1 15,20,70/80 HOURS OF SERVICE VIOLATIONS (AK) 1 1

395.3A1 10 HOUR RULE VIOLATION 10 10

395.3A2 15 HOUR RULE VIOLATION 1 1

395.3B 60/70 HOUR RULE VIOLATION 3 3

395.8 LOG VIOLATION (GENERAL/FORM AND MANNER) 3 3

395.8A NO DRIVERS RECORD OF DUTY STATUS 10 8

395.8E FALSE REPORT OF DRIVERS RECORD OF DUTY STATUS 9 7

395.8F1 DRIVERS RECORD OF DUTY STATUS NOT CURRENT 2 2

395.8K2 DRIVER FAILING TO RETAIN PREVIOUS 7 DAYS LOGS 18 17

Violation code 391.15A: DRIVING A CMV WHILE DISQUALIFIED

Driver OOS Inspections (within 30 months)

No. Inspection Date

Report State

Report Number Driver License State

VIN # Unit License #

Unit License State

1 3/24/01 XX 00M0000000 XX 0XXXXXXXXX000000 TEMP XX

2 6/30/00 XX 00CC000000 XX 000000 A00000 XX

3 2/25/00 XX 000P000000 XX XX000000 00000 XX

4 2/16/00 XX 00M0000000 XX 0XX0XX0X0XX00000 00000 XX

5 4/19/99 XX 000P000000 XX XX000000 AA0000 XX

56

V e h i c l e S E A V a l u e : 8 0 . 8 4

C o m p l i a n c e R e v i e w R e s u l t s ( w i t h i n 1 8 m o n t h s ) V e h i c l e I n s p e c t i o n s R e s u l t s

( w i t h i n 3 0 m o n t h s )

M e a s u r e s a n d I n d i c a t o r s

V e h i c l e R e v i e w I n d i c a t o r ( V R I )

0 . 0 V e h i c l e I n s p e c t i o n I n d i c a t o r ( V I I ) 8 0 . 8

V e h i c l e R e v i e w M e a s u r e ( V R M )

0 V e h i c l e I n s p e c t i o n M e a s u r e ( V I M ) 0 . 8 8 1

S u m m a r y E v e n t D a t a

D a t e o f R e v i e w 0 3 / 0 6 / 2 0 0 1 N u m b e r o f V e h i c l e I n s p e c t i o n s 2 2 8

N u m b e r o f C r i t i c a l V i o l a t i o n s 0 N u m b e r o f O O S I n s p e c t i o n s 6 5

N u m b e r o f A c u t e V i o l a t i o n s 0 V e h i c l e O O S R a t e ( V O R ) 0 . 2 8 5

S e l e c t D e t a i l D a t a :

57

Vehicle OOS Violation Summary (within 30 months)

Violation Number

Description Number of OOS Violations

Number of Inspections

392.2 LOCAL LAWS (GENERAL) 1 1

392.9 DRIVER LOAD SECURE 1 1

393.100 NO OR IMPROPER LOAD SECUREMENT 1 1

393.19 NO/DEFECTIVE TURN/HAZARD LAMP AS REQUIRED 5 5

393.201A FRAME CRACKED/BROKEN/BENT/LOOSE 2 2

393.205A WHEEL/RIM CRACKED OR BROKEN 4 3

393.205B STUD/BOLT HOLES ELONGATED ON WHEELS 1 1

393.205C WHEEL FASTENERS LOOSE AND/OR MISSING 10 5

393.207A AXLE POSITIONING PARTS DEFECTIVE/MISSING 4 4

393.207B ADJ AXLE LOCKING PIN MISSING/DISENGAGED 1 1

393.207C LEAF SPRING ASSEMBLY DEFECTIVE/MISSING 13 11

393.209E POWER STEERING VIOLATIONS 2 2

393.25F STOP LAMP VIOLATIONS 3 3

393.45 BRAKE TUBING AID HOSE ADEQUACY 1 1

393.46 BRAKE HOSE/TUBE CONNECTION 1 1

393.47 INADEQUATE BRAKE LINING FOR SAFE STOPPING 11 7

393.48A INOPERATIVE/DEFECTIVE BRAKES 9 6

393.50 INADEQUATE RESERVOIR FOR AIR/VACUUM BRAKES 1 1

393.51 NO OR DEFECTIVE BRAKE WARNING DEVICE 3 3

393.67 FUEL TANK REQUIREMENT VIOLATIONS 2 1

393.75A FLAT TIRE OR FABRIC EXPOSED 4 4

393.75A1 TIRE-PLY OR BELT MATERIAL EXPOSED 1 1

393.75A3 TIRE-FLAT AND/OR AUDIBLE AIR LEAK 2 2

393.75C TIRE-OTHER TREAD DEPTH LESS THAN 2/32 OF INCH 8 5

393.9 INOPERABLE LAMP (OTHER THAN HEAD/TAIL) 3 3

396.3A1 INSPECTION/REPAIR AND MAINTENANCE 20 11

396.3A1B BRAKES (GENERAL) 6 5

396.3A1BA BRAKE-OUT OF ADJUSTMENT 16 16

58

Violation code 393.207C: LEAF SPRING ASSEMBLY DEFECTIVE/MISSING

Vehicle OOS Inspections (within 30 months)

No. Inspection

Date Report State

Report Number

Driver License

State VIN # Unit License #

Unit License

State

1 7/17/01 XX 000AAAAA XX 000000 XX

2 5/25/01 XX 000000000 XX A000000 XX

3 1/22/01 XX 00AA00000 XX -NONE- XX

4 11/10/00 XX 00A000000 XX 0XXX00X00XX000000 00000 XX

5 9/18/00 XX 00C000000 XX 0XXXX0000XX000000 000000 XX

6 8/9/00 XX 000T00000 XX 00000 XX

7 6/23/00 XX 000000000 XX 000000 XX

8 6/23/00 XX 000000000 XX 00000 XX

9 5/3/00 XX 000000000 XX XX

10 2/17/00 XX 00M000000 XX 0XXXX0000X0000000 000000 XX

11 2/17/00 XX 00M000000 XX 0XXXX0000XX000000 000000 XX

12 12/18/99 XX 00M000000 XX 0XXX00X00X0000000 000000 XX

13 11/29/99 XX 000000000 XX 0XXXX0000XX000000 00000 XX

59

Safety Management SEA Value: 94.69

Compliance Review Results Safety Mgmt

(within 18 months)

Compliance Review Results Hazmat

(within 18 months)

Closed Enforcements Initiated from Compliance Reviews

(within 6 years)

Measures and Indicators

Safety Management Review Indicator (SMRI)

94.7 Hazmat Review Indicator (HMRI)

N/A Enforcement History Indicator (EHI)

Insuf. data

Safety Management Review Measure (SMRM)

86.33 Hazmat Review Measure (HMRM)

N/A Enforcement Severity Measure (ESM)

Insuf. data

Summary Event Data

Date of Review 03/06/2001 Date of Review N/A Last Enforcement Date None

Number of Critical Violations

3 Number of Critical Violations N/A Number of Closed Enforcements

0

Number of Acute Violations 1 Number of Acute Violations N/A

Safety Management Review Violations Safety Management related violations (acute/critical) that were discovered during the last review

Primary Federal Regulation

Secondary Federal Regulation

Violation Description Violation Type

382115(a) Failing to implement an alcohol and/or drug testing program A

39151(a) Failing to maintain driver qual. file on each driver C

3958(k)(1) Failing to preserve driver's record of duty status for 6 months C

3963(b) Failing to keep minimum records of inspection and maintenance C

For Regulatory Descriptions or Guidance for the Federal Motor Carrier Safety Regulations (FMCSRs) click here

60

Inspection Selection System (ISS)

Inspection Selection System (ISS)

Targets carriers with poor safety history Used on roadside inspections

Aids in the selection of “best” drivers/vehicles for inspection

Inspector enters DOT/ICC number for inspection value Recommends specific regulatory areas to concentrate

on – inspector makes final decision

Currently used in 47 states Uses a local database which is refreshed weekly

via SAFER System 60% increase in OOS violations

61

ASPENASPEN

Driver/vehicle inspection software Used by most States & FMCSA Collects inspection details & prints

inspection report Transfers inspection information to SAFER

System Linked to ISS

62

PRISMPRISM

Performance & Registration Information Systems Management CMV registration process Vehicle is identified with responsible carrier Safety fitness required to obtain plates Registration as incentive to improve

63

CVSA InspectionsCVSA Inspections

Commercial Vehicle Safety Alliance (CVSA) - Non-profit organization that standardizes inspections of commercial vehicles Level I – North American Standard Inspection

Full inspection of driver and vehicle Level II – Walk-around Driver/Vehicle

Inspection Level III – Driver-Only Inspection Level IV – Special Inspections Level V – Vehicle-Only Inspection

64

OOS ViolationsOOS Violations

Driver National average: 9.09%

Vehicle National average: 33.33% (CRAPPY)

HazMat National average: 4.76%

65

FMCSA Compliance ReviewFMCSA Compliance Review

An on-site examination of motor carrier operations: Drivers’ hours of service Maintenance/inspection Driver qualification CDL requirements Financial responsibility Accidents Hazardous materials Safety & transportation records

Determines if carrier meets Safety Fitness Standards

66

What can trigger a Review?What can trigger a Review?

A request to change a Safety Rating Potential violations of safety regulations Complaint Evidence of safety violations Recordable Accident

67

Safety FitnessSafety Fitness

Demonstration of adequate Safety Management Controls, which function effectively to ensure compliance with applicable safety requirements.

68

Safety Management ControlsSafety Management Controls

Systems, policies, programs, practices & procedures Ensure compliance with applicable safety

regulations Ensure the safe transportation of

products/passengers Reduce the risk of highway accidents or

HazMat incidents Evaluated through FMCSA Compliance

Reviews

69

Safety Fitness RatingsSafety Fitness Ratings

Satisfactory Adequate safety management controls to meet Safety Fitness Standards

Conditional Lacking adequate safety management controls to meet Safety Fitness Standards

Unsatisfactory Lacking adequate safety management controls to meet Safety Fitness Standards, resulting in violations of the regulations.

70

Measuring Safety FitnessMeasuring Safety Fitness

CDL standard violations (Part 383) Inadequate levels of financial responsibility

(Part 387) Use of unqualified drivers (Part 391) Improper use & driving of motor vehicles (Part

392) Unsafe vehicles operating on highways (Part

393) Failure to maintain accident registers &

copies of accident reports (Part 390)

71

Measuring Safety Fitness (cont’d)Measuring Safety Fitness (cont’d)

Use of fatigued drivers (Part 395) Inadequate inspection, repair & maintenance

of vehicles Transportation of HazMat, driving & parking

rule violations (Part 397) Hazardous materials regulations violations

(Parts 170-177) Accidents & HazMat incidents

72

Unsatisfactory Safety RatingUnsatisfactory Safety Rating

Means “Unfit” Prohibited from operating CMVs in

interstate commerce Motor carriers have 60 days after

determined “unfit” to improve or face shutdown

Passenger/HM carriers have 45 days to correct deficiencies

73

OSHA RecordkeepingOSHA Recordkeeping

Revised Rule

74

Revised RuleRevised Rule

Published in the Federal Register on January 19, 2001

Affects 1.4 million establishments Effective January 1, 2002

75

Benefits of the Revised RuleBenefits of the Revised Rule

Improves employee involvement Creates simpler forms Provides clearer regulatory requirements Increases employers’ flexibility to use

computers

76

FormsForms

OSHA Form 300 – Log of Work-Related Injuries and Illnesses

OSHA Form 301 – Injury and Illness Incident Report

OSHA Form 300A – Summary of Work-Related Injuries and Illnesses

1904.29

77

78

79

80

Recording CriteriaRecording Criteria

Eliminates different criteria for recording work-related injuries and work-related illnesses

Former rule required employers to record all illnesses, regardless of severity

1904.4

81

Recording Criteria Decision TreeRecording Criteria Decision Tree

1904.4

Did the employee experience an injury or

illness?

Is the injury or illness a new case?

Is the injury or illness work-related?

Does the injury or illness meet the general recording criteria or the application to

specific cases?

Update the previously recorded injury or illness

entry if necessary.

NO

YES

YES

Record the injury or illness.

Do not record the injury or illness.

NO

YES

NO YES

NO

82

Work-RelatednessWork-Relatedness

Cases are work-related if: An event or exposure in the work environment

either caused or contributed to the resulting condition

An event or exposure in the work environment significantly aggravated a pre-existing injury or illness

1904.5

83

Work-Related ExceptionsWork-Related Exceptions

Adds additional exceptions to the definition of work relationship to limit recording of cases involving: Eating, drinking, or preparing food or drink for

personal consumption Common colds and flu Voluntary participation in wellness or fitness

programs Personal grooming or self-medication

1904.5(b)(2)

84

General Recording CriteriaGeneral Recording Criteria

Requires records to include any work-related injury or illness resulting in one of the following: Death Days away from work Restricted work or transfer to another job Medical treatment beyond first aid Loss of consciousness Diagnosis of a significant injury/illness by a

physician or other licensed health care professional

1904.7(a)

85

General Recording Criteria (cont’d)

General Recording Criteria (cont’d)

Includes new definitions of medical treatment and first aid to simplify recording decisions

Clarifies the recording of “light duty” or restricted work cases

1904.7(b)(5)

86

Recording NeedlesticksRecording Needlesticks

Requires employers to record all needlestick and sharps injuries involving contamination by another person’s blood or other potentially infectious material

1904.8

87

Hearing LossHearing Loss

Requires employers to record 25 dB shifts in employees’ hearing during 2002

OSHA will reconsider the hearing loss criteria for 2003 and beyond

1904.10

88

Musculoskeletal DisordersMusculoskeletal Disorders

Applies the same recording criteria to musculoskeletal disorders (MSDs) as to all other injuries and illnesses

Employer retains flexibility to determine whether an event or exposure in the work environment caused or contributed to the MSD

OSHA will use the one-year delay to develop definitions of ergonomic injury and MSD consistent with a comprehensive effort

1904.12

89

Tuberculosis & Medical RemovalTuberculosis &

Medical Removal Includes separate provisions describing

the recording criteria for cases involving the work-related transmission of tuberculosis

Requires employers to record cases of medical removal under OSHA standards

1904.11 & 1904.9

90

Day CountsDay Counts

Eliminates the term “lost workdays” and focuses on days away or days restricted or transferred

Includes new rules for counting that rely on calendar days instead of workdays

1904.7(b)(3)

91

Employee InvolvementEmployee Involvement

Requires employers to establish a procedure for employees to report injuries and illnesses and tell their employees how to report

Employers are prohibited from discriminating against employees who do report

Employee representatives will now have access to those parts of the OSHA 301 form relevant to workplace safety and health

1904.35 & 36

92

Employee PrivacyEmployee Privacy

Prohibits employers from entering an individual’s name on Form 300 for certain types of injuries/illnesses

Provides employers the right not to describe the nature of sensitive injuries where the employee’s identity would be known

Gives employee representatives access only to the portion of Form 301 which contains no personal information

Requires employers to remove employees’ names before providing the data to persons not provided access rights under the rule

1904.29(b)

93

Annual SummaryAnnual Summary

Requires the annual summary to be posted for three months instead of one

Requires certification of the summary by a company executive

1904.32

94

Reporting to OSHAReporting to OSHA

Changes the reporting of fatalities and catastrophes to exclude some public transportation and motor vehicle accidents

1904.39

95

For More InformationFor More Information

Go to OSHA’s website:

www.osha.gov

for additional information about the new recordkeeping rule.

96

Insurance & InsurabilityInsurance & Insurability State of the MarketState of the Market Basis of InsurabilityBasis of Insurability How to Improve InsurabilityHow to Improve Insurability

97

State of the MarketState of the Market

Increase in Property & Casualty premiums Started increasing in 2000 Accelerated in 2001 with renewals September 11 pushed premiums higher Soft Market after; many sub-rated markets

Insurance companies forced to get better rate of return

Risk assessment getting more technical

98

State of the MarketState of the Market

Premium Increases (%)*

17%

32% 37%33%

120%

87%

0

20

40

60

80

100

120

140

2000 2001 After 9/11

Primary

Umbrella

*Based on surveys from 1,000 carriers by ATA

99

Why the Increase in Premiums?Why the Increase in Premiums?

“Soft market” prevailed for many years New insurance companies entered transportation

market Cut rates

Existing P&C insurance companies started “transportation programs” Increased competition & kept rates low

Reduced investment income Re-insurance premiums rose due to “shock

losses” Primary rates increased

100

Why the Increase in Premiums?(cont’d)

Why the Increase in Premiums?(cont’d)

Management & shareholders more “bottom-line” oriented

Insurance companies dropped transportation programs

Companies disappeared through acquisitions, mergers, etc. Reduced number of competing companies

101

Basis of InsurabilityBasis of Insurability

Underwriting = Process of reviewing your operation for insurance purposes: Insurance application Nature of operation Financial records & reports Loss history Location Area of travel Commodities Type of equipment Age of business Driver qualifications & records

102

How to Improve InsurabilityHow to Improve Insurability Risk Assessment

Assess your operation Reduce unnecessary risks

Analyze all losses Develop & document programs to reduce losses

Following good business practices Maintain proper documentation Good claims handling, reporting, procedures &

paper trails Written policies/procedures & adhere to them

Hire qualified drivers with good records Train drivers & other employees

103

How to Improve Insurability (cont’d)

How to Improve Insurability (cont’d)

Reduce driver/employee turnover Track & reduce accidents

Re-train drivers after accidents

Frequently obtain your Carrier Safety Profile Track & reduce OOS rates

Stay in compliance with regulations Develop driver recognition programs Develop & maintain an effective safety & loss

control program Adequate security measures

104

Elements of an Effective Safety Program

Elements of an Effective Safety Program

Written Safety Policy/Statement

Company/Driver’s Manual

Written Disciplinary Policies

Safety Awards or Incentive Programs Recognition and/or

Monetary

Safety and Accident Review Committee Quarterly committee

meetings Quarterly company-

wide safety meetings Safety Awareness

Campaigns Newsletters Paycheck stuffers Wireless/Satellite

communication

105

Elements of an Effective Safety Program (cont’d)

Elements of an Effective Safety Program (cont’d)

Annual Accident Analysis/Trending Accident Frequency Rates

Overall Frequency RateDOT RecordableDOT Recordable/Preventable

Determine accident causes/factors Implement disciplinary policies Re-training Develop Action Plans

106

Security MeasuresSecurity Measures

More than physical security measures Institutional/Procedural control Management resolve

Carriers who place the most management emphasis on security have the most successful security programs.

Cargo/Equipment Security Personnel Outside Vendors Facility Access

107

Personnel ScreeningPersonnel Screening

Submit a detailed employment application Photograph of applicant List of past residences Prior employment history – 10 years

Verify address & past employment Credit record Criminal record (if possible)

108

ID SystemID System Identifies personnel authorized to enter

cargo/equipment handling areas ID cards

Physical description & photograph Name & address Date of birth Signature Credential expiration date

Card security Laminate to prevent alterations Assigned control number Recover cards from terminated employees

109

Training TopicsTraining Topics

Include in loss control policy, procedures manual & orientation Procedures for pre-loaded trailers “Live” loading Proper loading & securement techniques for

cargo Theft prevention

110

Additional Training TopicsAdditional Training Topics

Notification procedures for cargo incidents Multiple drop loads Relay loads Handling & unloading cargo at consignee Cargo incidents while loading/unloading Refused loads High value loads

111

Outside VendorsOutside Vendors

Verify background Examine contractor vehicles parked in or

near cargo areas Restrict entrance to necessary areas Must display identification

112

Facility AccessFacility Access

Reduce vulnerability to theft Provide physical barrier against

unauthorized access to cargo/equipment Various access control measures

Gates/fences Intrusion-detection alarms Electronic access control systems Automated gatehouse systems

113

ParkingParking

Prohibit private passenger vehicle parking in or near cargo areas

Security controls for access to employee parking areas Outside fenced operational areas Substantial distance from cargo areas Pass through a supervised area when exiting cargo

areas Notify management/security personnel during hours of

employment Parking by permit only Temporary parking permits for visitors/vendors

114

Risk ControlRisk Control

115

What is Risk?What is Risk?

The measure of the probability & severity of a loss event taking place

116

Risk ManagerRisk Manager

Responsible for insurance programs & other activities that minimize losses resulting from: Fire Accidents Other natural & man-made losses

117

ProbabilityProbability

Likelihood of event taking place

Can be classified as: Frequent Probable Occasional Remote Improbable

118

SeveritySeverity

Magnitude of the loss in a given period of time

Can be classified as: Catastrophic Critical Marginal Negligible

119

Reducing Probability & SeverityReducing Probability & Severity

Factors in traffic accidents Equipment condition Driver selection Training Supervision

120