• Do You Reward?
• Motor Vehicle Records and the Fair Credit Reporting Act
• Brokerage Relations
• Value Added Coverages
• Big Iron Classic Helps Toys for Tots
• Survey Says - Workers Comp Rates to Rise in 2001
• Truck Drivers Appreciated
• Perkins Wins SC & RA Hauling Job of the Year 2000 
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Do You Reward?
With each truck package renewal, we send you a list of your drivers. On this driver list we ask for hire dates in order to determine length of service safety awards. This information is then provided to Great West who will provide FREE SAFETY AWARDS! Please fill in this information, so that we may assist you in recognizing your safe drivers. Here is one such award recently given:
Congratulations to Elwood Higem! This past month Elwood, a driver for Wille Transport, was presented with the 10-year safe driving award. Elwood started at Wille Transport as a company driver in 1988. He bought his own truck and leased it on in 1992. Elwood is known as a great guy with a big heart; willing to give anyone a hand. The pride for his job is evident through his meticulously kept truck and paperwork. Presenting his plaque is Randy Cook, owner, and Mike O'Neil, agent. 
 
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Motor Vehicle Records and the Fair Credit Reporting Act

Recently, DAC Services, a provider of Motor Vehicle Records (MVRs), was ordered to stop supplying MVRs for dual purposes. What this means to the trucking industry is that they can no longer obtain these records from their insurance carrier for employment purposes. Under section 604 of the Fair Credit Reporting Act Permissible Purposes of Consumer Reports [15 U.S.C. § 1681b] "(a) In general. Subject to subsection (c), any consumer-reporting agency may furnish a consumer report under the following circumstances and no other: (1) In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury. (2) In accordance with the written instructions of the consumer to whom it relates. (3) To a person which it has reason to believe: (A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or (B) intends to use the information for employment purposes; or (C) intends to use the information in connection with the underwriting of insurance involving the consumer; or ...". Insurance carriers are not consumer reporting agencies and thus are not a legal source of obtaining this information for employment purposes.
Insurance carriers can obtain MVRs for underwriting purposes and have established underwriting guidelines to determine insurability of a driver. You can obtain a copy of these underwriting guidelines from your agent. The insurance carriers suggest that these are only guidelines and that you have at least as good, if not better, guidelines for your hiring purposes.

As a motor carrier, you can obtain MVRs from the drivers themselves or from a consumer reporting agency (with the signed permission of the driver) such as DAC 1-800-331-9175 or Minnesota Driving Records 1-800-644-6877.

The website of the Fair Credit Reporting Act is http://www.ftc.gov/os/statutes/fcra.htm.

- by Lisa Burnside, VP-Information Technology, Truck Writers, Inc.
 
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Brokerage Relations
Does a trucking company have recourse against a shipper for unpaid freight invoices from a broker that provided the shipper's freight should the broker experience financial problems? The problem is that, from the view of the shipper, the carrier doesn't exist because the shipper only sees invoices from the broker. Usually, once the broker is paid, it collects its percentage and, only then, pays the carrier. However, there are many brokers who find themselves in the financial death spiral of taking one shipper's money and not paying the carrier that moved that shipper's product but instead pay themselves or one of the broker's other carriers or vendors. Usually, this results in the broker leaving town with a trail of unpaid carriers, possibly stranded freight and unhappy shippers and always unhappy carriers.
There has been a fair amount of litigation in this area and sometimes the carrier wins and sometimes not, especially if it means that the shipper has to pay twice. We advise our carrier clients to do as many of the following things as they can get away with in this competitive environment:

1. If there are a series of shipments from a particular shipper, early on the carrier should send a friendly note (and keep a record of doing so) advising the shipper that it is the carrier that is actually moving the goods. It should also state that the carrier considers the broker to be the shipper's agent, that the carrier accepts payment from the broker only for the convenience of the shipper and the carrier will look to the shipper and its consignees if the carrier is not paid.

2. The carrier should make sure that its name is always, always on the bill of lading section listing the name of the carrier. The brokers name should not appear here.

3. The carrier should always be sure that Sec. 7 of the bill of lading is not marked "COLLECT", "COD", "WITHOUT RECOURSE", "PREPAID" or in any other fashion implying that the shipper or the consignee is not liable for the shipping costs.

4. If the broker gets behind in its payments to the carrier, by even a few days, the carrier should immediately notify the shippers directly in a kind (or not so kind) letter advising them of the problem. This will either poison the relationship with the broker or convince it that the carrier's bills should be paid. At the least, it will stop the shipper from paying any more to the broker, thus avoiding the shipper's best defense in many cases, "But I already paid once."

5. The carrier broker contract should specifically allow the carrier to contact the shipper in scenarios where the carrier is not getting paid. At the least, the agreement should not prohibit it, which many do. In addition, the broker-carrier agreement should provide that the broker will immediately pay the carrier once it receives the bill from the carrier or immediately after receiving funds from the shipper, whichever is sooner. It should also require the broker to place the carrier's name on all shipping documents, and that it will provide copies of all relevant shipping documents and other shipment information to the carrier upon request. If possible, the agreement should work in the concept that the broker is holding the carrier's money from the shipper "in trust".

6. If the carrier has leverage, it should get an "advance" from the broker or have the broker post a bond or other security as a cushion for possible future unpaid freight bills. The carrier may also be able to obtain a personal guaranty from one of the broker's principals.

7. Require that the broker list the carrier in the contract between the shipper and the broker. At least, the carrier should be provided with a copy of that contract (even if the rates are blacked out) to see how the broker has limited the carrier's rights.

8. Last, the carrier should obtain a copy of the broker's bond and broker's license and check periodically that both are up to date.

This is usually a good place to start for a carrier. However, this area of the law is unsettled and many cases simply turn on which party has the most opportunity to avoid the problem in the first place. Some courts find that if the shipper has already paid once, then its the carrier who took the risk of associating with the broker.

- by Michael Glover, Kalina Wills Gisvold & Clark, PLLP
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Value Added Coverages
At Truck Writers, Inc. we make every effort to tailor your coverages to fit your specific needs. With the rising cost of insurance, we want you to pay for only those coverages that are a value to you. We also want to be sure you have the coverages that you need in the event of a loss. So, the next time you wonder why we ask so many questions, please remember: the better we know your business, the better able we are to provide you with the most comprehensive and economical insurance package.
The following are some commonly overlooked coverages that can provide you with significantly greater protection, at a relatively low cost to you.

Leased Value and Financed Value endorsements. They provide additional protection when the actual cash value of your equipment is lower than the cost to pay off your lease or loan. This coverage will bridge the valuation gap, greatly reducing your out of pocket expense at claim time.
Items Without Wheels! a. Miscellaneous Equipment Coverage covers various items used in securing cargo; such as tarps, chains, and binders when used on a trailer that you do not own. b. Electronic Equipment extends your physical damage coverage to include many of those gadgets that help keep your business running smoothly while you are out on the road. Examples include equipment that has been permanently mounted by you or the dealer; such as cell phones, two-way radios, satellite systems, computers and fax machines. 
Contingent Coverages for Auto and/or Cargo Liability. If you have any brokerage or freight forwarding operations, these coverages can cover potential risk that you may not be aware of. A good example is when the hauling carrier's coverages have any gaps that you may ultimately be responsible for.
Bailee Liability covers physical damage of non-owned equipment that you are contractually liable for. This is most often used when pulling someone else's trailers.
These are but a few of the items that can be added to your package to enhance the value of your coverages. I hope this at least gets you to think about some questions to discuss with your agent or customer service representative. They are here to help you get the coverages that you need and the protection you deserve. You have got enough to worry about delivering America's goods.

-by David Burnside, Marketing Manager, Truck Writers, Inc.
 
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Big Iron Classic Helps Toys for Tots
On Saturday, September 9, 2000 Truck Writers, Inc. participated in the First Annual Big Iron Classic Working Truck Extravaganza held at the Dodge County Fairgrounds in Kasson, MN. This was a dream come true for organizers Logan Bjerke of Stray Dog Transport, Todd Eggler of Byron Express, and Jim Finn of Jim Finn Trucking. One hundred working trucks arrived in immaculate condition, many with families along to share in the weekend events. Festivities included several vendors, food provided by Young Riders 4-H club, horse drawn wagon rides, and an evening light show. This event provided truckers and their families an opportunity to share stories, experiences, and time with one another and the community. Donations from all involved and a raffle held Saturday afternoon resulted in a $750 contribution to Dodge County Toys for Tots. This two day event was well received by everyone involved and plans are underway for 2001. You won't want to miss The Second Annual Big Iron Classic!
- by Marcia Bjerke, Agent, Truck Writers, Inc.
 
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Survey Says - Workers Comp Rates to Rise in 2001
A survey conducted by Hartford, Connecticut-based asset management and research company Conning & Company expects Workers Compensation rates to rise by up to 20% for 2001. The majority of the 30 top workers compensation insurers plan to take 10 - 20% increases. Therefore, companies should gear up to spend more on workers compensation premiums.
- Business Insurance, September 4, 2000 issue
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Truck Drivers Appreciated
The fifth annual National Truck Driver Appreciation Week was celebrated August 12-19, 2000. Truck Writers celebrated by holding a truck driver break at the Blaine office on Tuesday, August 15. Goodie bags with trucking information, pens, mouse pads, atlases, snacks and pop were given away. The truckers that stopped in took a few minutes to enjoy the sunshine and chat with staff members. We would like to thank all truck drivers for their hard work and dedication. 
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Perkins Wins SC & RA Hauling Job of the Year 2000
We would like to extend congratulations to Perkins Specialized Transportation Contracting. They competed against several other companies from around the world for their achievements in the heavy haul industry. The move involved maneuvering under, around, and over 370 overhead utility cables from the Port of Milwaukee to Beloit, WI. Fourteen utility companies put in over 2000 man-hours.
-by Donald Sullivan, CEO, Truck Writers, Inc.