This has been a busy month. It was fun catching up with some of you at the AAIS annual meeting and addressing the continued need for financial underwriting of motor carriers in the post BMC-32 world.  Financial underwriting remains as critical a part of the underwriting process as motor carrier operations diversify.  Underwriters need to ensure that they are aware of the risk they are undertaking and pricing it correctly. We are happy to talk to you about it if you would like information on the subject. I also had the opportunity to speak at the IMUA Midwest Regional meeting this month and meet many old and new friends and discuss these very topical issues.

I am heading out to Dallas this week to speak at the National Truck and Heavy Equipment Claims Council meeting to assist that notable organization in making sure that the industry has adjusters who can properly handle the complexity of cargo claim work.  Anyone interested in becoming a member can take a look at their website at www.nthecc.org.  They would also be pleased to provide you with their most current book containing information on licensed adjusters in this field. If you would like a copy, simply e-mail jreverette@everetteclaims.com and they would be happy to send you one.

The IMUA annual meeting is coming up quickly and we look forward to seeing many of you in Chicago. This year I will be joined by Tiana Cain, who will have a table in the vendor area so that she can meet all of you and show you all of the new items which you should be using on a daily basis as you underwrite your risks. Stop by the table and say hello.  You won’t be disappointed.

This month we report:

INSURANCE SCAM – A California licensed insurance agent, Paul Daniel Cornejo, has been arrested and charged with collecting premiums from long-haul carriers and never actually obtaining the policies. His company apparently serviced the Inland Empire area under the name Tatemas Truck Insurance Services and Royal Insurance Group Services, Inc.

TRUCK ACCIDENT REPORTS – The DOT has announced that the number and rate of traffic fatalities in 2010 fell to the lowest levels since 1949.  According to the National Highway Traffic Safety Administration’s (NHTSA) early projections, the number of traffic fatalities fell three percent between 2009 and 2010, from 33,808 to 32,788. Since 2005, fatalities have dropped 25 percent, from a total of 43,510 fatalities in 2005. They also project that the fatality rate will be the lowest recorded since 1949, with 1.09 fatalities per 100 million vehicle miles traveled, down from the 1.13 fatality rate for 2009. The decrease has even greater significance when we recognize an estimated increase of nearly 21 billion miles in national vehicle miles traveled. A regional breakdown showed the greatest drop in fatalities occurred in the Pacific Northwest states of Washington, Oregon, Idaho, Montana and Alaska, where they dropped by 12 percent. Arizona, California and Hawaii had the next steepest decline, nearly 11 percent. You can view the NHTSA’s latest statistical projections of traffic fatalities in 2010, including regional estimates here.

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We would like to start this month by welcoming our newest addition to the CAB family.  We extend a big welcome Tiana Cain who joins us as our Assistant Vice President of Business Development.  Tiana comes to us with tremendous experience in transportation insurance and brings to CAB your point of view, the end user of our services.  We look forward to all she will do as CAB continues to focus on its changing operations.  Don’t be surprised if you hear from her soon. And if you do not have the CAB advantage in your underwriting process contact Tiana to arrange for a demonstration. She can be reached at tcain@cabfinancial.com.

She is already moving us forward.  We are now on Facebook and Twitter! Please make us feel good by “liking” us on Facebook and following us on Twitter.  We promise that tweets will be worth reading and not reports on what we are having for lunch.

BMC-32 ENDORSEMENT – What a mess this last month has been with the termination of the cargo endorsement for certain carriers.  Many insurance carriers began to cancel their filings, effective on the scheduled end date.  Unfortunately the government failed to stop their automatic notice process and motor carriers began receiving notices that their operating authority would be revoked.  CAB got involved and was able to assist in getting a formal response that the letters were sent in error and that motor carrier authority would not be revoked.  We would also note that the FMCSA has now changed the licensing and insurance page to indicate that no one needs filings, which is in fact incorrect as household good carriers and forwarders still need the filing.  In other news a last ditch effort by some organizations to stop the cancellation of the endorsement did not work but steps may be in the works to try and legislate the endorsement back into existence.

CARGO NET CARGO THEFT REPORT – Our friends at Cargo Net have released their 2010 Cargo Theft Report. Many cargo insurers have joined forces with Cargo Net to help combat cargo theft and recover stolen cargo.  A copy of the report can be viewed here. Inside this excellent report you will find information on stolen commodities types, locations, time trends as well as a wealth of additional material which will help you evaluate this exposure. The Cargo Net program can be reviewed at cargonet.com. Read More