• May the Millennium Bug Not Bite You
• Introducing Concept Financial Group
• S.M.A.R.T - Theft
• How Should I Value My Tractor or Trailer?
• FHWA had Eventful Year
• Dress Down for Leukemia and Walk-A-Thon
• Spinal Cord Society Scramble for a Cure 
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May the Millennium Bug Not Bite You 

At Truck Writers, we are concerned with issues facing us relating to the year 2000. As you may have heard, the year 2000 (Y2K) is presenting some computer-related problems.

One of the main problems is computers that are unable to recognize a date as occuring in 2000 instead of 1900 (i.e., 99=1999 and 00=1900). Another problem is 2000 is a leap year, while 1900 was not. The reason for this programming error was to save space and money in the early days of programming.

We are interested in making you aware of this situation as it relates to your insurance coverages. The various insurance companies are taking different stances on whether items will be covered, excluded, or need interpretation. You may have already seen some of the new endorsements being attached to your renewal policies, or have received questionnaires. Most insurance policies already exclude this event as it is not "accidental", "unforeseen", nor a "fortuitous event".

Please take every precaution to fix your Y2K problems. We recommend doing a complete inventory of any hardware, software, and vendors you may deal with. Two excellent Internet sites are www.y2k.com and www.sba.gov, yet there are many more.

We at Truck Writers will be here to help address your individual insurance policies and the stances our companies are taking. We would also like to assure you that we are doing our own Y2K assessment and plan to be compliant.

-Lisa Burnside, Vice President - Marketing, Truck Writers, Inc. 
 
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Introducing Concept Financial Group

We are pleased to announce that Concept Financial Group is now located at the Truck Writers' Minneapolis office. Concept Financial Group offers creative financing options to the trucking industry on both new and used equipment. Through years of experience in the banking industry dealing with transportation customers and lending sources, Chris Johnson (President of Concept Financial Group) has put together the best programs and rates available for you, our valued customer.

Whether it is a finance package or lease program that you are looking for, we would invite you to give Chris a call today and let him show you the value Concept Financial Group can offer your company. Chris Johnson can be reached at his office at (612) 780-1527, by fax at (612) 780-1528 and via email at Chris@ConceptFinancial.com.
 
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S.M.A.R.T -  Theft (Safety Management Accident Reduction Targeting)

The incidence of cargo theft and hijacked rigs is on the rise. In 1998 alone, Great West incurred well over 900 of these losses. Typically, these theft losses can cost thousands of dollars per occurrence. Most of the equipment and accessory theft losses occur in large metropolitan areas; however, small town cargo theft and damage claims are steadily increasing.

You can reduce the chance of falling victim to a theft by reviewing company security measures with your drivers. It is important to remind your drivers at safety meetings or during discussions to follow proper procedure to prevent theft. The following common sense security measure can help reduce the frequency of theft from happening:

Conduct a thorough background check on your drivers. A high percentage of thefts involve drivers employed for less than three months. Be certain to contact the previous employers as required by the Federal Motor Carrier Safety Regulation. Although not required by law, a criminal background check is also a good place to examine the credibility of your drivers (check with your state legal counsel regarding the legality of criminal background checks).

Make sure your drivers know proper security procedures. Theft and related issues should be thoroughly covered in the driver's orientation program. This is also a perfect time to review cargo securement and trailer loading procedures.

Immediately report any instances of theft. Remember, time is extremely important. Once you know that you have a theft situation, immediately call your insurance carrier. Also, notify other drivers of the theft.
-Great West Casualty Company 
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How Should I Value My Tractor or Trailer?

The most accurate way to value your equipment is to get two written appraisals from a dealership. (Obviously, even one appraisal is better than none when it comes to negotiating a claims settlement or sale price). Some people have tendency to overvalue their equipment, while others tend to undervalue their equipment based on "what they owe the bank". In the event of a theft loss or "total" loss from collision or upset, an insured would want to get the fair value for his/her particular piece of equipment.

In an insurance contract the insurance carrier agrees to pay "actual cash value" (market value less depreciation) or "stated value" (value listed on the policy by the insured) - whichever is LESS. With this in mind, it makes no sense to overinsure equipment, as the insurance carrier won't pay more than the actual cash value, or underinsure equipment, as you (the owner) lose out in the event of a theft or total loss. Accurate valuation should be a priority at renewal.

Another thing to keep in mind when valuing equipment is adding new parts (particularly an engine or transmission). Just because you add a new engine to a tractor for $10,000, it does not automatically make that tractor worth $10,000 more. The tractor with the dead motor was worth little if anything and replacing the engine so that the tractor is able to continue to run will just bring the valuation back up to what that particular year and make of tractor is worth - taking into account a modest addition in value for the new engine.

One final note is on financed value of equipment. If you have a tractor financed at $20,000, but the current value is only $15,000, we can write a Financed Value Endorsement on the policy to be sure you get the $20,000 in the event of a loss. Again, you must request and pay for the Financed Value Endorsement for the increased value amount to be paid at loss.

If you still have questions on how to properly value your equipment, please give your agent a call today. Your agent at Truck Writers in Minneapolis can be reached at 1-800-634-8612 or the Welcome office at 1-800-658-2375.

-Shawn Sullivan, President, Truck Writers, Inc.
 
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FHWA had Eventful Year

As part of the FHWA overhaul in 1998, nine regional offices were closed and replaced with four "resource centers" to streamline the structure. The resource centers are designed to provide expertise in trucking safety and technology, among other issues. The FHWA will still keep its state offices and their motor carrier divisions.

Some say that the reorganization will result in a more visible Office of Motor Carriers (OMC), and it would be able to provide enhanced services, especially after its planned merger with the Office of Highway Safety.

FHWA Administrator Kenneth R. Wykle said other changes would make his agency more focused. He said the department would be organized into five core business areas: motor carrier and highway safety; infrastructure; planning and environment; operations; and federal highways.

On top of the downsizing, the OMC was bashed by criticism from safety groups for having "lost sight of its mission in regulating truck safety". There was also compaigning for the National Highway Traffic Safety Administration to takeover the agency. Many truck advocate groups vocally opposed this suggestion and it lost momentum.

Hours-of-service progress slow

In part due to a transitional year for the FHWA, very little progress has been made on the hours-of-service reform, one of trucking's top regulatory priorities in 1998. A major consideration is whether new hours-of-service regulations will help eliminate driver fatigue. The FHWA announced it may allow industry, labor and safety groups, and other parties to work with regulators to set new rules. The agency is nearly a year behind a congressionally mandated schedule for issuing a draft and will likely miss its March deadline for a final rule. FHWA says it is shooting for the end of the year 2000 to set the regulations. Some trucking officials are concerned the new negotiation proposal would drag out an already lengthy and complex process.

Also overdue...

A major rule making regarding the establishment of a Single On-Line Federal Registration System has been delayed. The states would suffer a substantial loss of revenue should the Single State Registration System be phased out. The proposed legislation would eliminate the system over a five-year period to help them cope with its implementation.

In an interim rule making, the FHWA suggested a number of new rules, such as requiring new applicants within 90 days to fulfill compliance requirements (like insurance filings) and failure to do so would mean immediate dismissal of the registration request.

-Great West Casualty Company
 
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Dress Down for Leukemia and Walk-A-Thon

Truck Writers participated in the 1999 Dress Down for Leukemia event the week of March 15-19. The employees made a contribution which was matched by the company. This year, $830 was raised. Dress Down for Leukemia supports research at the Mayo Clinic and at the University of Minnesota; this research is key to improving cure rates and treatments. The Minnesota Chapter also provides financial aid to over 300 Minnesotans. Another event related to the Leukemia Society was the Mall of America Walk-A-Thon on February 6, 1999. Four Truck Writers employees participated in this event and raised over $500 toward the cure. Our thanks goes out to all that participated. 
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Spinal Cord Society Scramble for a Cure

On Wednesday, June 2, 1999, the Twin Cities Chapter of the Spinal Cord Society hosted its 10th Annual Scramble for a Cure. Truck Writers has been a supporter of this event in the hope of finding a cure and making life better for those inflicted with spinal cord injuries. We again gave a donation toward research into genetic engineering. For information regarding the Spinal Cord Society, please contact Jeff Toby by email at blkcamel@aol.com.