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Commercial Driver's LicenseNon-Employee Drivers Medical Payment InsuranceDriver Authorization and Vehicle UseSubject: Commercial Driver's License
This paper explains the new Commercial Driver's License and the procedures that drivers of commercial vehicles should follow to qualify for this license In 1986, the Federal government passed a law called the Commercial Motor Vehicle Safety Act (CMVSA) in an attempt to gain greater control over safety of the roads, both for drivers of trucks and buses, and for everyone who shares the road with them. The CMVSA creates new procedures that States must follow when issuing licenses to truck and bus drivers. The new Commercial Driver License (CDL) is a State license which conforms to uniform national standards. The CDL is not limited to long- distance truckers. It covers everyone who drives commercial motor vehicles including but not limited to intercity buses, gravel trucks, semi trucks, garbage and utility trucks, and mechanics, who test drive commercial motor vehicles. Because the Client may has many drivers who were previously issued chauffeur or bus licenses, or who fall into the category of commercial motor vehicle drivers, the Commercial Driver's License Law will have an effect on most Client's divisions. It must to be the Client's policy, that all Client's drivers who are driving commercial motor vehicles, as defined by the law, meet the requirements of the CDL as set forth by the Department of Transportation. Operating a vehicle without the correct license will result in substantial penalties including arrest and monetary fines to both the Client and the driver. 1. General Requirements Because the type of vehicle, and not the driver, defines who needs a CDL, the following characteristics have been set forth to define what a commercial motor vehicle is. A CDL is required of any driver of: 1. Any vehicle designed to carry 16 or more persons including the driver, such as our Client's Divisions' mini buses. 2. Any vehicle that weighs over 26,000 pounds (defined as the greater of manufacturer's gross vehicle weight rating, manufacturer's gross combination weight rating, actual weight, or registered weight). 3. Any vehicle that carries hazardous materials that require placarding as found in Title 49, Code of Federal Regulations, Part 397. These requirements include volunteers and temporary renters of such vehicles who are driving commercial motor vehicles on Client's business. 2. Pre-April 1, 1992 Requirements Beginning January 1, 1991, in order to drive a commercial motor vehicle across State lines in the event of field trips, athletic events, etc., the driver must be at least 21 years of age and possess a Federal medical permit and a chauffeur's license, a consolidated license, or a commercial driver's license. For intrastate transportation a driver must be at least 18 years of age, meet medical requirements, and have a chauffeur's license, a consolidated license, or a commercial driver's license. 3. Post-April 1, 1992 Requirements All commercial vehicle drivers must possess a commercial driver's license with the proper classes and proper medical certification. 4. Acquiring the CDL The Department of Transportation (DOT) expects to begin issuing CDL's in April of 1991. Information on acquiring a CDL will be included in the renewal information of a drivers current license. All chauffeur and school bus licenses will expire on March 31, 1992 if not sooner, so that application for the CDL must be made before that date. 5. Specific Requirements You need to meet three conditions to get a CDL: 1. Pass the Testing Requirements Vision, knowledge, and skill testing is required. We have been pursuing the possibility of having DOT come to the Client's divisions to offer the knowledge tests if there are enough personnel taking the tests at one time. Beginning in September of 1990, Client's divisions should begin arranging dates for the knowledge tests that are required for the license. The enclosed appendix includes a copy of contact personnel from DOT who can set up these programs. There is a "grandfather" provision being offered between January 1, 1991 and April 1, 1992 for the skills test. To qualify for the skills test waiver a driver must: (1) have two years of experience driving the same type of commercial vehicle or have passed a driving test in the same class of vehicle, (2) not hold a license from more than one State at the same time, (3) have a good driving record. 2. Complete the Driver Record Background Check Drivers must meet a variety of legal and medical requirements to complete this check. 3. Pay Any Necessary Fees A four year CDL costs $32. Class changes or endorsements after the license is issued will cost $5. The skills test will be approximately $20. Decisions as to whether the employee or the Client will pay the CDL fees will depend upon the necessity of having a CDL for the employee's particular job and the individual Client's division policy. 6. General Suggestions for Client's Divisions Client's Divisions are recommended to ensure that drivers who qualify for, or are required to drive commercial motor vehicles take the necessary knowledge exams before January 1, 1991 and take the skills test as soon as they can take it. We encourage people to take the skills tests as soon as possible so that when DOT offers the CDL license after April 1, 1991 they will be eligible to receive the license at that time and not risk being without a license after April 1, 1992. Individuals applying for a chauffeur's license now will be able to secure one until January 1, 1991. After April 1, 1991 DOT will only issue CDL Instruction Permits to new drivers. This permit will allow you to drive a commercial vehicle out of State if you are at least 21 years old. The permits are good for six months. After April 1, 1992 CDL drivers with instructional permits must have a licensed driving instructor accompany them on trips or meet other qualifications. Lastly, it is recommended that each Client's Division affix a permanent label on the inside windshield of all commercial vehicles owned by the Client to help in their identification. Subject: Non-Employee Drivers Medical Payment Insurance
This section has been developed to give an overview of the application and operation of the Non- Employee Driver Medical Excess Insurance Fund within the Client's Legal Entity. Client's Risk Manager has to study the feasibility of the protection for volunteer and Staff drivers of Client's vehicles. A large gap in protection of those non-employee drivers was perceived as a serious risk management exposure for the Client. To circumvent serious liability claims arising out of injury to non-employee drivers, it was decided that a fund would be set up to pay for the medical expenses incurred as a result of automobile accidents when driving in the scope of the non-employee's agency with the Client.
All claims should be sent in writing directly to Client's Risk Management Office and should include the following:
Subject: Driver Authorization and Vehicle Use
The purpose of this section of the UKGC Risk Management Document is to provide the Client's institution risk manager and related personnel with the driving requirements that must be met in order for an employee, Staff or volunteer to be authorized to use a vehicle while on Client's business. These specifications will give each Client's institution the ability to evaluate and screen drivers with the goal of assuring State automobile liability protection and reducing uncertainty and loss from vehicle claims. This policy applies to anyone driving on Client's business, including times when the vehicle is not only owned by the Client but when a vehicle (including vans) is rented or leased. As described in the UKGC Self-Funded Liability Program (UKGCSLP) section of this document (Section 3, A), Client's employees, officers, and agents are provided liability protection while acting within the scope of their employment or agency through the UKGCSLP. This includes those actions which arise out of the use Client's vehicle. To control the liability exposure that vehicle use generates, Client's administrators and/or Client's institution risk managers must monitor the use of Client-owned vehicles carefully. This exposure can most effectively be controlled through the use of a systematic driver approval and authorization program at each institution. It is critical that those making the determination on who is authorized to drive remember that driving a Client's vehicle is not a right but a privilege, and the exposure is extreme. Vehicle use entails a wide variety of related issues which affect the liability, property, and workers' compensation experience of the Client. Therefore, the exposures created by vehicle use must be controlled since the losses can be extreme. The issues that will be addressed in this section which affect the exposures generated by vehicle use are: driver authorization procedures; liability protection for employees, Staff employees, Staff, and volunteers; drivers with out-of-state driver's licenses; driving in other states; foreign drivers and the use Client's vehicles in foreign countries; the use of personal vehicles for Client's business; and non-employee passengers in Client's vehicles. These guidelines do not apply to the Commercial Driver's License Program. This issue is addressed in Section 7A of this document. As set forth in the State Fleet Policies and Procedures (Appendix A), use of Client's vehicles is limited to Client's employees 18 years of age with a valid driver's license, two years of licensed driving experience and acceptable driving records. Exceptions may be made for Client's Staff and other Client's agents, when their use is deemed to be in the best interest of the Client, however, any exceptions must be approved by the Client's institutional risk manager as delegated by DOA to Client's Risk Management and/or the institution Director or their designee. The Department of Administration requires that part-time employees be subject to the same exception criteria as Staff and volunteers as set forth in Section V below. Full-time employees who are taking classes shall be subject to the criteria in Section IV. In addition, any driver who knows or should know that he/she is unable to drive for health or safety reasons does not qualify to drive. In order to begin to determine if an employee is approved to drive it is a requirement of the UKGCSLP that all drivers must first sign a Vehicle Use Agreement Form (Form 7, D.11), which signifies that the driver has read and understands the State Fleet Policies and Procedures. The Vehicle Use Agreement also contains space for the driver's license number and it informs the driver of the obligation to reveal any changes in the status of that license. This information allows the Client's institution risk manager to check the individual's driving record, and, based on their record, determine if they can be authorized to drive. The employee must be in the scope of their employment in order to receive protection under the Client's liability policy. The following requirements apply to employee drivers. (They do not apply to volunteer drivers. The requirements for these groups are listed separately in section VI.) 1. If all sections of the Vehicle Use Agreement are not completed, the form will be returned to the department to complete, and approval or denial will not be determined until it is completed and returned to the risk management office. 2. Employees will only be authorized to drive Client's vehicles while they are in the scope of their employment. Liability protection will only be afforded to the extent that the individual is acting within the scope of the specific institution's activities. 3. All approved drivers must have a valid regular driver's license or have held a probationary license a minimum of two years. 4. All drivers must meet the following requirements regarding Violations and/or Accidents: Denial of use will occur if any one or more of the following conditions exist: 1. Three or more moving violation(s) and/or at fault accident(s) within a 2-year period. (these guidelines apply no matter what state the violation is received in) 2. Violations within the past 12 months for: 1.Drunk
driving, There are instances where an individual has a violation for drunk driving, driving under the influence of drugs or reckless driving and they are given an occupational permit. This does not mean that they are approved to drive a Client's vehicle, only their own vehicle. (This stipulation applies to all situations where someone has an occupational permit due to a poor driving record.) The decision as to whether or not these individuals can drive on behalf of Client, will still be made by the Client's institution risk manager in consultation with Client's risk management and the Client's institution Director (Chancellor) or designee. 5. Driver experience - Denial will also occur when someone has: 1. Less than two years licensed driving experience. Possessing a learners permit does not apply toward this requirement. 2. A reinstated license in effect less than one year after revocation. It is important to note that these requirements apply to all employees. Requests for exceptions to the denial for employees who are required to operate a state vehicle as a primary part of their job, should be referred to the Client's Risk Management office and they will in turn work with the Human Resources Department to resolve the situation. All other exceptions must be approved by the Client's institution risk manager in consultation with the Client's risk manager. Before protection can be extended to students, student employees or volunteer drivers, they must complete the Student or Volunteer Driver Authorization Form (page 7, D.12). When properly completed this form will indicate usage for a legitimate Client's activity and will be signed by the designated departmental staff person and department chair if appropriate. The form must be submitted to the Client's institution's risk manager who will review the intended use and the driving record. Upon approval, this form will help serve to designate the non-employee student and the volunteer as an agent. Students, student employees and volunteers shall not be allowed to drive without having an approved authorization form on file. As an authorized driver, liability protection is afforded by the State for the individual only while acting within the scope of the Client's activities. 1. If all sections of the Driver Authorization Form are not completed, the form will be returned to the department to complete, and approval or denial will not be determined until it is completed and returned to the risk management office. 2. Violations and/or Accidents - Denial of use will occur if any one or more of the following conditions exist: 1.
Three
or
more
moving violation(s) and/or at fault accident(s) within a
2-year period. 1.
Drunk
driving, There are instances where an individual has a violation for drunk driving, driving under the influence of drugs or reckless driving and they are given an occupational license. This does not mean that they are approved to drive a Client's vehicle, only their own vehicle. The individuals that fall under this section (VI) will not be allowed to use Client's vehicles under any circumstance. (This stipulation applies to all situations where someone has an occupational permit due to a poor driving record). 3. Driver experience - Denial will also occur when someone has: 1.
A
reinstated
license
in effect less than one year after revocation. Vehicle use approval should only be given for official Client's business including activities necessary to sustain a traveler away from home such as going out to eat (within a reasonable distance). A substantial or unreasonable use of a State vehicle for personal purposes may result in a decision that a driver is, was, or will be, operating outside of the scope of employment or agency. 1. Some examples of approved usage are: 1.
Class
related
field
trips that are for educational purposes and have
on-site supervision by a Client's employee or agent. 2. Some examples of denial are: 1.
Individual
research
projects
or course-work primarily for the personal
benefit of a student working toward a degree. These guidelines do not apply to the new Commercial Driver's License Program and drivers of Commercial Vehicles as defined by that program. This issue is addressed in section 7A. An employee requesting to drive a 12-15 passenger van, mini-bus, or bus must complete the applicable driver authorization form and meet the following vehicle authorization criteria: 1.
25
years
or
older with two years licensed driving experience and a
valid regular driver's license. Any other individual (student, student employee or volunteer) who may request the use of a van or bus will also have to meet the requirements in Section VI and all of the requirements above. License checks may be made as follows: 1.
DOTI
(DMV's
Official
Transcript Information) 2.
By
telephoning
the
DOT at telephone number __________________. Any driver who has an out-of-state license and is requesting approval to drive State vehicles must attach a completed Notarized Statement of Driving Record (Form 7, D.14) to the Driver Authorization Form or Vehicle Use Agreement. This statement must list any moving violations and describe any accidents they have been involved with, in the past three years. This also applies to drivers who have been licensed elsewhere, but have had a Driver's License less than three years. Drivers from other countries can only be approved to drive State vehicles if they speak and read the English language, and have a valid operator's license or a valid international driving permit for a period not to exceed one year from date of arrival. A valid operator's license or international driving permit is defined as one from a country who was a signatory to either the 1943 regulation of inter-American automotive traffic or the 1949 Geneva Convention on road traffic. An international license is required for the international drivers as it can be useful in emergencies such as traffic violations or auto accidents, particularly when a foreign language is involved. Drivers from foreign countries whose license is expiring must pursue a local driver's license. The procedures to follow when approving a driver from a foreign country are the same as those for drivers with a license from other states with authorization expiring at the time the driver's license expires. Authorized drivers who take a State vehicle into another state should be aware that many states require proof of insurance in the event of an accident or traffic violation. Form 7, D.15 is a certificate of coverage which has been developed by Client's Risk Management. The certificate is designed to provide proof of liability protection for persons driving in State or Client-owned vehicles. A copy of the signed certificate must be placed in each vehicle that the Client uses to avoid the possibility of being without such proof in circumstances where it is needed. 1. Canada Drivers should be authorized through the same procedure described earlier. In addition, when driving a State car to Canada, a Canadian Automobile Liability Card must be carried in the car at all times. Although full liability protection exists for drivers in Canada while acting within the scope of their employment or agency, these cards provide the necessary proof of insurance as required by Canadian officials. Client's Risk Management will provide these cards upon request. The cards can be used throughout the policy year and are valid for any auto we own or rent. It is highly recommended these cards be collected and reused throughout the year. 2. Mexico Mexico does not recognize foreign insurance (U.S. insurance); therefore, it is required that all Client's vehicle drivers procure adequate auto liability and physical damage coverage before crossing the border. Employees or agents who are driving rented or personal vehicles in Mexico on official Client's business must also procure adequate auto liability and physical damage coverage before entering Mexico. This coverage should be obtained from the rental agency or outside insurance carrier. Travel into Mexico also requires that you have proof of ownership of the vehicle you are driving. It is very important to be sure that you have title to the vehicle before you enter Mexico. The titles to Client's vehicles are not kept with the vehicle so be sure to obtain the original title or a duplicate title before leaving on the trip. Client's officers, employees, and agents can drive their personal vehicles on official Client's business, however, their own automobile insurance will be primary to the coverage. The UKGC will only provide excess coverage to drivers when they are using their personal vehicles. It is prudent to require that all employees who may possibly drive complete the driver authorization process and make them aware of this situation. It is also advisable that individuals driving their own vehicles carry personal auto insurance with limits of at least $100,000/$300,000/$50,000. In general, non-employee and non-agent passengers are not allowed to ride in State-owned vehicles due to the additional liability exposure which they pose. Exceptions to this rule arise when transportation is necessary or convenient for individuals who are dealing directly with, or are involved in, Client's or State business, (or it is part of the Client's mission.) Transportation of Staff athletic teams and students participating in Client's institutional governance activities may be considered Client's business. Exceptions have also been made for handicapped employees who need the assistance of a non-employee driver, and long distance (300 miles round trip) trips where alternating drivers are necessary. If these passengers are required to drive, they must follow the same authorization procedures used for Staff and volunteers. When non-employee/non-agent individuals wish to travel with a Client's employee, i.e., spouse, family, team boosters, they should use a personal vehicle so their personal liability insurance will apply to the loss. Medical expenses of drivers and passengers of State vehicles are reimbursed depending upon the status of the injured individual. Employee expenses should be paid through Workers' Compensation. Injury to non-employee drivers may be reimbursed through the Non-Employee Driver Medical Expense Pool described in Part 7, B of this document. Injury to non-employee passengers should be reimbursed through the individual's health insurance, the driver's personal automobile insurance, or the Client's Liability Program (if our driver was negligent). Client's employees who have acceptable driving records may be furnished with a personally-assigned vehicle. These individuals should also have their driving records checked annually for authorization to drive. Drivers of personally-assigned vehicles must follow the guidelines for permitted and prohibited use as outlined in the Fleet Policy and Procedures. Special provisions for liability protection are extended to Staff (chancellors) in their use of personally assigned vehicles. These provisions apply because a chancellor is on-call 24 hours a day and his/her family members can also be agents of the Client. A chancellor and his/her family shall be covered for automobile liability. When renting vehicles for non-business use, it is recommended that the Chancellor purchase auto coverage through the rental agency or through a personal insurance company since they would not have any auto coverage from the state for their personal exposures. If the chancellor already has an auto policy for other vehicles they may own they should check with their insurance agent to confirm liability and physical damage coverage for the rented vehicle. The State or Big 10 approved auto rental vendors must be used whenever possible; the only exceptions are the following: 1.
The
State
or
Big 10 vendor is unable to provide a vehicle at the
location needed. If a State or Big 10 approved vendor is used, the CDW does not need to be purchased (the coverage is already afforded in the contract). If, on the other hand, an alternative vendor is used, the CDW must be purchased and reimbursed as an expense. If it is necessary to rent a vehicle for travel outside the United States or Canada, the CDW must be purchased; in addition, liability coverage should be purchased (the amounts will vary according to the statutory requirements of the country). When a trailer is rented use the approved State vendor if possible. If it is not possible to use the State vendor it is important to purchase the CDW. If this type of activity is occurring with any frequency it would be advisable to add the trailer to the inventory. GENERAL INFORMATIONCoverage for use of Client-owned vehicles is restricted to our UKGC Self-Funded Liability Program. It is a requirement of the UKGC Self-Funded Liability Program that any Staff or volunteer driver must have a "Staff or Volunteer Driver Authorization Form" on file in the Risk Management Office, prior to using a Client's vehicle. INSTRUCTIONS:A. All forms must be signed by the Staff/volunteer's supervisor making the request. B. The form must be sent at least ten (10) working days prior to departure to: Risk
Management
Department DEFINITIONS AND EXAMPLES:"Student Driver" - All Client's Staff, students, including student employees. "Volunteer Driver" - An individual other than a student or employee. Some examples of approved usage are: 1.
Field
trips
that
are for educational purposes, and have on-site
supervision by a Client's employee. Some examples of rejections are: 1.
Individual
research
projects
or course work primarily for the personal
benefit of a Staff in working toward an undergraduate or advanced
degree. |
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