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10/01/2005
The Department of Transportation Safety Rating System: General Rating Factor
This is the fourth in a series of articles developed to help provide guidance to National Association of Tower Erectors member companies about the Federal Motor Carrier Safety Administration (FMCSA) Safety Rating, how it is established, how it affects them and what they need to do to establish and maintain a Satisfactory rating. Today’s topic is the General Rating Factor. All regulatory references used in this article are to the Code of Federal Regulations, Title 49 – Transportation, Subtitle B - Other Regulations Relating to Transportation, Chapter III - Federal Motor Carrier Safety Administration, Department of Transportation, Subchapter B - Federal Motor Carrier Safety Regulations.
During a compliance review (CR), a company’s compliance with the requirements of Parts 387 and 390 relating to Minimum Levels of Financial Responsibility and General Regulations, respectively, will be checked by a representative of the Federal Motor Carrier Safety Administration for the purpose of developing the company’s score relating to the General Rating Factor. Following are the acute and critical regulations that the agent will assess during the CR:
Acute regulations relating to the General Rating Factor which are considered during a compliance review include violations of §387.7(a) and §387.31(a), which relate to operating a commercial motor vehicle without having in effect the required minimum levels of financial responsibility. Another acute regulation relating to the General Rating Factor is a violation of §390.35, which involves making or providing intentionally false statements or documents. Critical regulations relating to the General rating factor which are considered during a compliance review include violations of §387.7(d) and §387.31(d), which relate to failing to maintain required proof of financial responsibility and of §390.15(b)(2), which relates to failing to maintain an accident register and all accident reports related to listed accidents required by the State or other governmental entities or insurers.
Financial responsibility compliance depends upon several factors:
• Where you operate – interstate or intrastate;
• What kind of carrier you are – private or for-hire;
• The gross weight of the vehicles; and
• The commodity carried – non-hazardous property or hazardous materials, waste, or substances.
Refer to the schedule shown in §387.9 of the Federal Motor Carrier Safety Regulations (FMCSR) to determine whether or not your company is subject to the FMCSA’s financial responsibility regulations.
If your company is not required to file evidence of financial responsibility, it doesn’t need to maintain proof of financial responsibility. However, if your company is, in fact, subject to the FMCSA’s financial responsibility regulations, you must additionally, in accordance with §387.7(d), maintain proof of the required financial responsibility at your principal place of business. The required proof of financial responsibility can take the form of one of three documents. If you choose to insure, an MCS 90 must be maintained in your office. Companies meeting the public liability requirements with a surety bond must have an MCS 82 issued by a surety as evidence of compliance with §387.9. The FMCSA provides a sample Form MCS 82 in §387.15, but the document must be issued directly to the company by a surety company. An MCS 82 serves as proof of a surety bond, just as the MCS 90 provides evidence of insurance. Certain companies are self insured under §387.309; for these companies, a written decision, order, or authorization from the FMCSA authorizing a motor carrier to self insure will satisfy the proof of financial responsibility requirement.
Regulations included in those deemed critical or acute that will bear on the scored General Rating Factor include those relating to retaining accident information and documents and to making fraudulent or intentionally false statements or records relating to the requirements related to noise control detailed in §325 of the FMCSR. Companies are required to retain accident records and to maintain an accident register. The only accidents that should be listed in the accident register are those meeting the definition of an “accident” specified in §390.5. This section defines an accident as an occurrence involving a commercial motor vehicle operating on a highway in interstate or intrastate commerce which results in:
• A fatality;
• Bodily injury to a person who, as a result of the injury, immediately receives medical treatment away from the scene of the accident; or
• One or more motor vehicles incurring disabling damage as a result of the accident, requiring the motor vehicles to be transported away from the scene by a tow truck or other motor vehicle.
The term accident does not include occurrences that involve only boarding or alighting from a stationary motor vehicle, nor does it include those which involve only the loading or unloading of cargo. For accidents that occur after April 29, 2003, a company’s accident register must maintain accident records for three years after the date of each accident. Information placed in the accident register must contain at least the following:
1. A list of accidents as defined above containing for each accident:
• Date of accident;
• City or town, or most near, where the accident occurred and the State where the accident occurred;
• Driver name;
• Number of injuries;
• Number of fatalities; and
• Whether hazardous materials, other than fuel spilled from the fuel tanks of motor vehicle involved in the accident, were released.
2. Copies of all accident reports required by state or other governmental entities or insurers.
I am hopeful that the information contained herein will alert companies to those areas in which compliance will ensure maintaining a satisfactory safety rating in accordance with the Federal Motor Carrier Safety Regulations.
DISCLAIMER - The information and suggestions contained in this document have been developed from sources believed to be reliable. However, the accuracy and correctness of such materials and information has not been verified. We make no warranties either express or implied nor accept any legal responsibility for the correctness or completeness of this material or its application to specific regulations. This information should not be construed as business, risk management, or legal advice or legal opinion.
William M. England, CSP, ARM, CFS is a Senior Technical Services Manager for AIG Consultants, Inc. AIG Consultants (AIGC) is the entity of AIG that provides support to clients in their efforts to control losses and ultimately reduce their total insurance costs and risk exposure. AIGC recently became one of the few organizations worldwide to be certified under the new ISO 9001 registration for quality management.
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