NAII SATISFIED WITH NAFTA MEXICAN TRUCK RULES

NAII SATISFIED WITH NAFTA MEXICAN TRUCK RULES    David M. Golden, director of commercial lines for the National Association of Independent Insurers, said the U.S. Transportation Department’s rules for Mexican trucks have “crossed the finish line” by addressing the insurers’ safety concerns under the North American Free Trade Agreement.
   Mexican trucks are expected to start crossing into the United States in mid-July.
   “We are pleased that the implementation rules require Mexican trucking companies to have valid insurance from a U.S. licensed insurance company and that vehicles will only be able to enter the U.S. at commercial border crossings when a certified inspector is on duty,” Golden said.
   “I addition, DOT is training additional inspectors to meet the demands of the increased truck traffic, all of these factors are critical to protecting American motorists,” he said. “After a six-year battle to highlight important safety concerns regarding the NAFTA agreement, it appears that many of our recommendations are now in place.”
   Golden said auto insurance for motor carriers is currently written by both standard and surplus lines insurance companies. State insurance regulators have convinced federal regulators to adopt the position that both types of insurers are able to provide this coverage to Mexican motor carriers that serve U.S. markets.
   “Surplus lines insurance companies will be important because they will keep the market viable by ensuring availability of insurance for Mexican trucks traveling throughout the United States,” Golden said. “That is why NAII has urged Congress and the Department of Transportation to adopt a broad interpretation of ‘licensed insurer to include surplus lines insurers.'”
   The NAII is also satisfied with the Mexican Transportation Agency’s new database to monitor Mexican drivers’ hours of service, drivers licensing and safety records.
   “NAII believes this database will enhance and promote safety and consistency between the three countries (United States, Mexico and Canada),” Golden said. “The challenge now is to make this information available to American underwriters as they evaluate the insurance risks associated with Mexican motor carriers operating in the United States.”