C48 Automobile Part 2

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C48 Automobile Part 2
2012-04-01 11:10:45

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  1. Transport trucks, private passenger vehicles, motorcycles - what automobile policy may insure all of these vehicles and others?
    Owner's Policy
  2. How might the task of rating as described in C14 for personal automobile insurance become unduly onerous for commercial automobile?
    The rating task would become huge if one had to gather such information on every driver for a commercial risk that has 20 automobiles. Such a risk could have 20 drivers; a few occasional drivers; other personnel, such as the principal of the company, who might occasionally operate a vehicle; and some turnover of drivers.

    The rating process would be so inefficient that one would have difficulty finding an insurer willing to accept the risk.
  3. Summarize the provisions of the Owner's Policy.
    Third-party Liability - damage to the property of others arising out of the ownership, use, or operation of the automobile.

    Accident Benefits - provides specified amounts of money for immediate expenses resulting from injuries arising out of the ownership, use, or operation of the automobile.

    Uninsured Automobile Coverage - uninsured or unidentified drivers.

    Physical damage - insured may buy coverage to protect it against loss or damage caused by collision, fire, theft and a number of other perils.
  4. What does the term "no-fault" mean in the context of Accident Benefits coverage?
    Those benefits are provided to an injured insured whether or not that insured is responsible for his or her injuries
  5. What consideration directly relates to how generous Accident Benefits are in some provinces as compared to others?
    Benefits are more generous in some provinces than others and are directly related to whether an injured party has the right to sue the responsible party in the particular province where the policy has been issued.
  6. What is the first recourse for indemnity for victims of accidents involving uninsured automobiles?
    In some provinces, this section of the policy is the first recourse for insured’s injured in accidents. In other provinces, the public fund created to compensate victims of such accidents is their first recourse.
  7. How is compensation provided insured’s in those provinces where the right to sue third parties for damages after automobile accidents has been taken away or limited?
    In those provinces, compensation is provided under insured’s' own policies for damage to auto and their contents caused by other motorists
  8. How is the coverage for an insured or his or her spouse driving "other automobiles" limited under the Owner's Policy?
    If the other automobile has a gross vehicle weight of more than 4500 kg. Or is used to carry passengers or make commercial deliveries at any time.
  9. Give an example or circumstances for which some commercial risks need coverage that the owner's policy cannot accommodate.
    Employee may operate his or her own automobile at the direction of his or her employer.
  10. Explain the purpose of the following policies:
    - The Garage Automobile Policy
    - The Non-Owned Automobile Policy
    - The Excess Automobile Policy
    - The Lessor's Contingent Automobile Policy
    Garage Auto Policy: provides garage personnel the coverage that the owner's policy excludes. It insures non-owned and customers' automobiles in the care, custody or control of garage personnel. It can also be used to cover personal automobiles owned by the principal and other owned vehicles used in operation of the garage business.

    Non-Owned Auto Policy - provides legal liability coverage to a business entity for automobiles it does not own but may at times use for its business purpose. Often attached to the CGL Policy.

    Excess Auto Policy - provides limits of liability in addition to the limits on underlying auto policies. Often written as part of an umbrella policy, it may also be added to the CGL policy. As an excess policy it makes its limit of liability available after the limit of liability on an underlying, or primary, auto policy has been exhausted. Can be used for both personal & commercial risks.

    Lessor's Contingent Auto Policy - primary coverage is arranged by the lessee. Owner's policy if properly endorsed will protect both the lessee and the lessor. The lessor's Contingent Auto Policy will protect the lessor, to the extent that the lessor is legally liable as the owner of the auto, should the primary policy be terminated or fail to respond. It can be added to the CGL policy.
  11. Define a "commercial automobile".
    • A. a motor vehicle of the truck type or deliver body style
    • B. a motor vehicle of the PPV type that has been altered for the transportation of merchandise, equipment, materials or products, or other commercial use;
    • C. a motor vehicle of the PPV type used for commercial delivery, driving schools, the transportation of passengers, or funeral, fire or police department services
    • D. A motor vehicle of the bus type used to carry passengers along designated routes or on sightseeing trips or outings that does not fall within the definition of a school bus or a hotel, golf, country club, or wheelchair van
    • E. a motor vehicle of the bus type used in the business of carrying schoolchildren, students, or teachers to and from school or school activities
    • F. a motor vehicle of the bus type used in connection with the business of hotel golf, or country club
    • G. a motor vehicle of the bus type used for transporting employees or operated by a church or a charitable or other association
    • H. a motor vehicle of the van type designated or equipped for and used in the business of transporting passengers confined to a wheelchair.
  12. Identify exceptions to the definition of “commercial automobile” – vehicles that might appear to be commercial vehicles but are not.
    • Commercial vehicles of the truck type used exclusively for pleasure purposes, with a gross weight of 10,000 lbs./4,500 kgs or less.
    • Automobiles used on behalf of volunteer organizations and driven by volunteer drivers to transport individuals, including volunteer drivers who receive reimbursement for their driving expenses and meals.
    • Automobiles used for demonstrating or test-driving purposes, or held for sale by an automobile dealer.
    • Private passenger automobiles used to transport sales samples.
  13. What is a bill a lading?
    When a carrier accepts goods to transport them, the bill of lading includes a list of the goods in the shipment and outlines the carrier’s undertaking and its responsibility for the property.
  14. Explain what is meant by “interlining”
    Several carriers will share contractual responsibility for a large shipment between them. One takes the shipment part of the total distance, then turn the shipment over to a second carrier for the next leg of the trip – it’s the contractual relationship[ between carriers to share shipment delivery.
  15. What is a “long haul”?
    travel a one way distance of more than 160km standard is a general guideline used by various parts of the Canadian trucking industry.
  16. Describe the following types of commercial risk:

    A Carrier
    A Common Carrier
    A Contract Carrier
    An Exempt Carrier
    A Private Carrier
    A Freight Forwarder
    An Owner/Operator
    A Terminal
    A Carrier – A carrier is an organization that transports freight or persons.

    A Common Carrier – Transports merchandise for hire, must accept shipments from anyone who wishes to use its service, provided that the merchandise is not restricted.

    A Contract Carrier – is a company that engages in for-hire transportation of merchandise under an individual contract with one or limited number of customers.

    An Exempt Carrier – engages in transportation for hire.

    A Private Carrier – provides transportation services solely to the firm that owns or leases the vehicles, must be secondary to the business of the owners.

    A Freight Forwarder – is a third party transportation company that assembles small volumes of freight from various shippers.

    An Owner/Operator – is a truck driver who owns his or her vehicle and who works under contract for a carrier (for hire or private)

    A Terminal – is any location where freight originates, terminates, or is handled in the transportation process or where a commercial motor carrier maintains facilities.
  17. Describe the following types of commercial vehicle and the hazards associated with them:
    A Highway Tractor
    A Tank Truck
    A Deliver Truck
    A Cement Mixer
    A Cube Van
    A Dump Truck
    A Tractor and Logging Trailer
    A Tractor and Livestock Trailer
    • A Highway Tractor – a conventional single or tandem axle cab and chassis with a 5th wheel assembly mounted on the rear of the chassis with electrical and airline hoses for attachment to a semi-trailer. Used to transport goods long distances and may leave the province or country. They are subject to jack-knifing; loss of control when the trailer pivots suddenly and forcefully; driven without trailer (bob-tailing); may be difficult to control as weight may not evenly proportioned over the axles. Other hazards include sleepiness, exhaustion, unfamiliarity with roads along the route; risk to certain types of cargo of theft or of time; tight deadlines, triple-trailers harder to control than those with single.
    • A Tank Truck – cab & chassis fitted with a tank body and pumping and unloading equipment used for the delivery of liquids. Hazards – shift in load can affect the required stopping distance & stability of the unit when stopping or turning; danger that the load in the tank could be contaminated by the residue of previous loads; environmental hazard
    • A Deliver Truck – cab & chassis with a 1 to 5 ton capacity and a 12 to 18 ft closed body mounted on the chassis. Hazards – blind spots.
    • A Cement Mixer – a tandem axle chassis with a cement mixer mounted on the back of the chassis. Hazard – upset exposure is high.
    • A Cube Van – single axle van used by couriers and postal services to deliver small parcels. Hazard risk of collision.
    • A Dump Truck – single or double axle cab & chassis with a mounted dump box. Hazards – susceptible to upset, driver paid per trip – violate safety standards.
    • A Tractor and Logging Trailer – tractor with an attached flatbed trailer used for carrying logs. Fitted with steel uprights to keep logs from rolling off & steel rack in front to prevent logs from shifting forward. Hazards – units travel on poor road conditions. Blind spots, collisions, wear and tear, load may be unstable.
    • A Tractor and Livestock Trailer – semi stock trailer attached to a tractor and used for transporting livestock, trailer divided into an upper & lower level. Hazards – risk of loss control, high centre of gravity combined with shifting of the stock.
  18. What is the main piece of legislation in each province that specifies the legislative requirements for automobile insurance?
    Federal & Provincial legislation and municipal by-laws.
  19. State the function of the federal Truck Transportation Act.
    Delegates authority to the provinces to enact legislation setting out the minimum requirements in areas such as minimum limits of liability and operating regulations for commercial and public vehicles.
  20. Discuss the history, purpose, and provisions of the National Safety Code.
    The National Safety Code was developed and implemented to complement the provincial standards. Its purpose is to establish a code of minimum performance standards for the operation of commercial vehicles. The code applies to the person responsible for the operation of commercial vehicles and also regulates the hours a truck driver can legally drive. The intent was to provide consistency among the provinces for the administration of the safety functions. Previous to this, highway safety was the responsibility of the Provinces and each province had different standards for safety. The main purpose of the NCS is to handle the concern for motor carrier safety in the deregulated environment legislated by the Federal Motor Transport Act.
  21. Describe the function of the Transportation of Dangerous Goods Act.
    • The Transportation of Dangerous Goods Act regulates the handling and transportation of dangerous regulated goods.
    • The act identifies 1 through 9 general classifications as any products, substance or organism included by its nature or by the 9 classes listed on the schedule.
    • The purpose of the handling act is to ensure that the goods as properly handled during transportation and the carrier licensed to do so. The act places certain responsibilities on the carrier in making sure that labelling and placards, cargo security and reporting the event of a sill upset. The act also has a clause for imposing the legal doctrine of absolute liability on those handling regulated substances.

    Certain responsibilities are placed on the carrier by the Act including place cards and labeling, cargo security, reporting procedures in the event of a spill upset. The act also states that only a licensed carrier can handle regulated substances and that the legal doctrine of Absolute liability applies to those same people. Some other legislation that supplements the Transportation of Dangerous Goods Act include: Explosives Handling Act, Radioactive Materials Handling Act, Environment Protection Act, Workplace Hazardous Materials Information System Act as well as many other regulations.
  22. Name four other pieces of legislation that suppplement the Transportation of Dangerous Goods Act.
    • Explosives Handling Act;
    • Radioactive Material Handling Act;
    • Environment Protection Act;
    • Workplace Hazardous Materials Informations System Act;
  23. Explain how each province provided for the regulation of truck and bus operations.
    Many of the provincial government bodies responsible for transportation publish their requirements and other information on the internet.
  24. Discuss the regulation of driver licensing by provincial governments.
    To qualify to operate some types of commercial vehicle, operators are required to complete driver test on the type of equipment for which they are applying for licences; they may be required to submit medical certificates; they may also have to have graduated from an approved driver-training course and the licence may be subject to minimum age restrictions.
  25. Discuss the application of municipal bylaws to the operation of commercial automobiles and related considerations.
    Municipal bylaws regulating & licencing certain carriers such as cartage companies, tow trucks, or refreshment vehicles specify minimum limits of liability & miminum covearges for carrier operating within municipal boundaries. Municipalites also regulate roads within their boundaries, restricting the operation of commercial automobiles on some roads & specifying maximum load limits on some roads, bridges, and other thoroughfares.
  26. Discuss the regulation in the United States of for-hire transportation in interstate or forgeigh commerce.
    • It's subject to regulation by the US Interstate Commerce Commission.
    • Companies must also receive operating authority from the ICC.
    • Proof of insurance is required.
    • Minimum limits of Liability, in U.S. Dollars, are prescribed, depending on the type of commodity being carried.
  27. How do most insurers divide their portfolios of commercial auto risks?
    • Two groups:
    • Individually rated Commercial
    • Fleet-rated commercial auto risks
  28. What is a power unit?
    A power unit has a motor and so is self-propelled.
  29. What crietia largely determine the underwiring of individually rated commercial auto risks?
    Same criteria as are personal auto risks: use, operating radius, length of time the risk has owned the vehicles or similar vehicles, driving record, number of years accident-free, and rate group.
  30. What constraints do insurers face in selecting or declining, terminating, or refusing to renew individually rated commercial auto risks? Identify exceptions to the general case.
    In Ontario, insurers must have the grounds on which they may select or decline, terminate, or refuse to renew any auto risk approved; no distinction is made between personal & individually rated commercial risks. In provinces where a government insurer insures auto risks, all risk must be offered insurance.
  31. How are fleet risks usually defined?
    As having five or more power units, excluding recreational vehicles, some insurer’s thresholds are ten.
  32. Commercial auto underwriting comprises what three elements?
    • 1) the acceptance or rejection of a risk (except for government insurers)
    • 2) the negotiation of the policy terms under which the insurer will accept the risks
    • 3) The negotiation of an acceptable premium for a policy issued on these terms.
  33. At what two levels does underwriting take place?
    Head Office and the Individual Underwriter.
  34. Market philosophy: where is it formed? How? By whom? For what purpose? Any exceptions to this rule?
    At the Head Office of the insurer, management determines its market philosophy, to attract business that will produce a profit. Exceptions to this are government insurers, which are not profit-driven.
  35. Do insurers consider all classes of commercial risk? Explain.
    Some insurers will consider most classes of commercial risks. But many try to attract specific classes. Classes are often determined together with Property/Casualty department so that the insurer may meet all of the insured’s needs.
  36. What are the bases for market segmentation?
    Some companies segment by size of company in terms of either receipts or employees; some, by type of equipment, preferring to write only light commercial vehicles (under 4500 kg). Some companies segment risks by territory of operation, declining risks with vehicles that travel out of the home province or country. Others segment by class of risk; such companies usually compose a “decline list” of unacceptable classes. Risks that all insurers consider unprofitable would go to “residual risks” market such as the Facility Association.
  37. What is typically included in an underwriting manual? What is an underwriter to do for risks that fall outside the parameters of the manual?
    Underwriting manual will set out the criteria for acceptance or rejection of risks; types of risk to be declined; underwriting authorities; a limit table; a classification guide based on the use of the vehicle, the gross vehicle weight and the operating radius; and other instructional material. Risks that fall outside the parameters of the manual are referred to head office. The manager enforces company guidelines and rules and establishes audit procedures.
  38. What determines the limits the underwriting manual specifies for third-party liability?
    It’s based on the insurer’s reinsurance treaties and the amount of risk the insurer is willing to assume on its own account.
  39. What options does an insurer have for severe exposures not covered by the treaties?
    The insurer may place these risks on a decline list or it may agree to write the first $1 million of exposure and seek facultative reinsurance for the additional limit required.
  40. What do limits table have to say about Accident Benefits? Physical Damage exposures?
  41. What else is included in an underwriting manual?
    The underwriting manual will show all policy extensions, embellishments, and endorsements that underwriters may offer.
  42. What is exception underwriting?
    Most companies have some type of screening, editing, rejecting, approval, rating and policy issuance now done by computers, more companies are moving towards exception underwriting, whereby the underwriter reviews a risk only if the system “flags” a piece of information that does not fit the manual’s criteria.
  43. Describe the task of a commercial auto underwriter in general terms.
    Ensuring that new applications, renewals, and requested changes conform with the acceptance rules, underwriting philosophy, guidelines and strategic plan, or rules for referral to a higher level.
  44. In general terms, what information should commercial auto applications include? Is it the same in all provinces? Explain.
    Commercial Auto applications should include the information in personal auto applications and additional information particular to commercial risks. Different provinces have different application forms for this information. Some use the same standard application form used for personal auto applications and another, separate form called the Commercial Vehicle Supplement.
  45. In commercial auto application, what information should the description of the insured's business include? Why is this information important?
    It should include what commodities, if any, are being transported, and specify the operation radius and the gross vehicle weight (the actual weight of the vehicle plus its carrying capacity); rates differ between rate classes. Therefore, proper classification of auto risks is essential to the profitability of an insurer’s commercial automobile portfolio. Rate classes are determined by the nature of an applicant’s business and the operating radii and gross vehicle weight of the vehicles.
  46. Identify and explain the three elements of the applicant's experience with its vehicles.
    Three elements are the driving experience for all operators on like vehicles and the length of time that the applicant has owned each vehicle or a similar vehicle and claims experience for each vehicle. The importance of this experience is to show that the driver contains certain skill sets to drive a commercial vehicle, unlike private passenger commercial type vehicles are more of a hazard to operate they cannot turn corners on a dime, the distance between vehicles are important as it’s not easy to come to a stop suddenly. It puts the onus on the business to have greater hiring standards for the employees that operate commercial automobiles. Losses follow the vehicles and not the drivers. The business would not be able to hide losses by firing the employee that caused a loss.
  47. Why is a value for a vehicle needed on the application? What is the measure of that value in approved forms? What variations on that measure are sometimes used - and why?
    To assign a vehicle to the proper rate group for physical damage coverage, there must be a value to it. In approved applications forms, the value requested is the list price new. If a commercial vehicle has any attached equipment to it, the value of the equipment is part of the list price new for the vehicle.
  48. Besides the application form and CVS, what else should a request for individually rated commercial auto insurance include?
    In addition to the above it should include the applicant’s loss experience.
  49. How useful is the claims experience on computer databases for IRC autos? Why?
    The claims experience on computer databases is of limited use, they do not identify individual commercial autos as they do individual personal auto. They will display loss experience for policies issued by previous carriers. Although losses are not attributed to specific commercial vehicles, it will show the rate classes for the insured’s vehicles.
  50. What are MVR's?
    Ministry of Transport Driving Record Abstracts. It will advise you of the type of licence classes drivers hold, along with driving violations.
  51. How might you be tempted to explain the purpose of fleet underwriting in terms of the law of large numbers? Why would that explanation be wrong?
    If a given risk were to generate lower costs than were anticipated in the rate it was charged, there would be no actuarial reason to reduce its rate because the experience of just one vehicle is not statistically significant. But if an insured has a large number of vehicles, then there would be more significance to any difference between the experience of this fleet as a whole and the experience that would have been anticipated for it. Therefore, an insurer is justified in rating a fleet of vehicles as a group rather than simply adding the premiums generated by individual rates to calculate a total premium for the fleet.The explanation would be wrong – very few fleets have enough vehicles for the law of large numbers to be reflected in their experience; as we have seen, a fleet may have as few as five power units.
  52. If the law of large numbers does not explain it, then what is the purpose of fleet underwriting?
    In fact, the main reason insurers underwrite groups of five or more vehicles as fleets are not actuarial but simply practical: use and maintenance.Vehicles owned by one insured will all be treated with the same standards of use and maintenance. The standards applied to that fleet of vehicles are more likely to be formally established, implemented, and monitored than are the standards improvised by the owner of a single vehicle. It’s less expensive for an insurer to negotiate terms with one insured and issue one policy than to negotiate with ten insured’s and issue ten policies.
  53. Why have many auto insurers developed their own fleet survey forms?
    Approved application forms have limited space for listing vehicles, drivers and claims. The amount and type of additional information that can be requested for fleet-rated commercial auto insurance is not regulated, therefore most insurer’s designed their own fleet survey forms or established minimum requirements for information included in a fleet application so that the necessary fleet premium may be developed.
  54. What information should the list of vehicles in a fleet include?
    A list of vehicles, including attached equipment or machinery that includes the use, the gross vehicle weight, the list price new and the operating radius of each vehicle.
  55. How much loss experience should be included in a fleet submission? In what form should it be obtained? What might lead an insurer to need still more loss experience as a minimum?
    The loss experience for a minimum of three years, usually displayed on an insurer’s letterhead. If insurer wants to offer a retrospective rating plan or calculate premium by loss rating, it may need a minimum of five years experience.
  56. What is loss fequency? Loss severity? Why are these important measures of loss experience? Are there any othe aspects of loss experience to be considered?
    Loss frequency that is, the ratio of the number of losses to the number of power units. The severity of losses the dollar amounts actually paid for individual losses.Other important aspects of claims experience are prior coverage’s and deductibles.
  57. What information should the list of drivers in a fleet submission include?
    Length of time employed and the applicant’s hiring procedures.
  58. Why does it matter how long drivers have been employed for? What is the importance of a risk's hiring procedures? What else besides experience should an insurer consider in a risk's drivers?
    Lengths of employment determine the stability of the applicant’s workforce. A stable workforce suggests that employees are treated fairly and are paid a fair wage for the industry, that morale is acceptable, and that management is capable. Evaluating an applicant’s hiring procedures is it important because drivers with little driving experience may not have the skills necessary for the demanding and stressful job of a driver and may need comprehensive training to ensure that they can perform satisfactorily. Driving experience alone does not mean that the driver will have the necessary skills to perform satisfactorily on the type of equipment or carry the type of cargo required. Experience is an important criterion. Convictions should also be considered – number and type.
  59. Why does an underwriter look for a description of a risk's maintenance procedures in its application?
    The underwriter looks for a description of maintenance procedures in the applicant’s application to be sure that the applicant does in fact schedule regular maintenance for its vehicles.
  60. Why does it matter how long a risk has been in business?
    New businesses often fail, may be insufficient capital to build a strong client and employee base. There may be capital invested in vehicles that are sitting idle while a business establishes itself or during slow period. A new business has little or no loss experience with which the insurer can calculate a creditable premium.
  61. What is the signicicance of a risk's financial strength to its attractiveness for the insurer? How does the insurer assess a risk's financial strenght?
    More likely to attract high-quality drivers by its ability to pay;Vehicles are maintained in top running order, regularly replace older equipment with new, and provide the service required to keep a solid client base. The financial statements for at least three years are often required to afford a direct assessment of financial strength.
  62. Of what use are loss control reports to an insurer? What information does a loss control representative collect and present in a report? When should an underwriter order a loss control report? What considerations bear on the decisions?
    Loss control reports confirm that the risk characteristics are as presented and provide valuable supplementary information. Loss control representative will usually check driver files and maintenance logs to ensure that the procedures are as stated and that they comply with various legislation and operating authorities. Loss control representatives can also confirm the exact nature of the insured’s or applicant’s business, goods carried on its vehicles, and it normal radius of operation; they may also provide their own analysis of claims experience
  63. How is the attitude of a risk's management assessed? Why is that attitude important?
    It is important that the management attitude towards safety and loss prevention be genuinely positive to have a real impact on company goals for safe operation of well-maintained vehicles by competent, responsible individuals.
  64. Why should an underwrier be interested in whether an applicant's employees have been hired for skills other than driving?
    An underwriter must consider whether an applicant’s employees have been hired primarily for skills other than driving or, where a business hires casual drivers, whether driver turnover might affect the loss experience.
  65. How may an underwiter assess the driving of employees who do incidental driving but for whom the hiring process did not include reviews of their driving and accident records?
  66. What should be expected of employees driving company vehicles? Why should this be a special concern to risks large enough to be fleet-rated?
    Employees driving company vehicles should be expected to drive defensively and not merely be concerned with fault. For rating purposes, the liability losses of individually rated risks are reduced by the amount that represents the fault of third parties. In fleet rating, however, no distinction is made between the fault of the employees and that of a third party in assessing the amount of a third-party liability loss.
  67. What characterizes defensive driving?
    A defensive driver will adjust for unusual weather, traffic, and road conditions to prevent accidents that might otherwise be caused by the unsafe actions of pedestrians or other drivers. A defensive driver will be alert to potential accident situations as they develop and act in advance to prevent an accident by allowing for the lack of skill or improper driving practices of others.
  68. Why should the underwriter evaluate the employer's practice regarding personal use of business automobiles? What precautionary measures should he or she be looking for on the part of the employer's management?
  69. How many businesses with incidental driving of commercial vehicles be expected to maintain those vehicles? What about business-use PPV's?
    Businesses with incidental driving exposure will usually not have their own repair facilities. A business that requires the use of commercial vehicles should have a maintenance contract with a local garage and should maintain logs to control the regular maintenance of these vehicles. The maintenance on business-use private passenger vehicles is often left to the discretion of the driver. They are not used so much, vehicles are often replaced every two or three years.
  70. What should an insurer ascertain about management attitude where incidental driving is an exposure? What factors might affect management's response to an employee's poor driving record?
    It is important to ascertain the action that management is prepared to take should that employee’s driving or accident record affect the acceptability of a risk. Management may be unwilling or unable to place an employee – for example, a top salesperson with a poor driving record – in a non-driving position. Management may also be constrained by the terms of a collective bargaining agreement if its employees are members of a union.
  71. What is a preventable accident? How should preventable accidents be identified? What complicates the identification effort? What should management do about them?
    A preventable accident is one that would not have occurred had the driver taken all reasonable precautions to prevent it. It may be difficult to classify accidents, especially for someone not trained in risk management. An accident should be reviewed with the driver to determine if he or she could have taken some other action. Disciplinary procedures should also be set out to ensure a consistent approach and so that drivers are clear on management expectations.