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ANALYSIS OF INSURANCE ISSUES FOR FLORIDA'S PROVIDERS OF TRANSPORTATION SERVICES FOR TRANSPORTATION DISADVANTAGED PERSONS Prepared for the Florida Trmsportation Disadvantaged Commission by the Center for Urban Transportation Research College of Engineering University of South Florida January 1993
TABLE OF CONTENTS Introduction . . . . . . . . . . . . . . . . . . . . . . . . I Historica l Issues . . . . . . . . . . . . . . . . . . . . . . . . 1 F lorida's Experience . . . . . . . . . . . . . . . . . . . . . . . 3 Nationa l Developments in TD Transportation Insurance . . . . . . . . . . 4 Southeastern Transit Insurance Program . . . . . . . . . . . . . . . 5 California Transit Insurance Pool (Ca!TIP) . . . . . . . . . . . . . . 5 Kansas Public Transit Risk Purchasing Group . . . . . . . . . . . . . 6 Trans it Mutual Insurance Corporat i on of Wisconsin (TMICW) . . . . . . 6 Other States' Insurance Initiatives . . . . . . . . . . . . . . . . 7 Iss u es for Florida's TD Systems . . . . . . . . . . . . . . . . . . 8 General Findings . . . . . . . . . . . . . . . . . . . . . . 13 Insurance Purchasing Alternatives . . . . . . . . . . . . . . . . . 15 Group Buyin g Pools . . . . . . . . . . . . . . . . . . . 15 Mass Marketed Insurance Purchasing . . . . . . . . . . . . . . . 16 Assigned Risk Insurance Purchasing . . . . . . . . . . . . . . . . 16 Market Assistance Insurance Purchasing . . . . . . . . . . . . . . . 16 Self Insurance Retent ion or Trusts . . . . . . . . . . . . . . . 1 7 Recommendations . . . . . . . . . . . . . . . . . . . . . 17 Future Implications . . . . . . . . . . . . . . . . . . . . . . . 19 Appendix A: CUTR's TD V ehi cle Insurance Survey for CTCs . . . . . . . . 21 Appendix 8: Summary of Responses to CUTR' s TD Vehicle Insurance Survey . . . 29 Appendix C: Survey Respondents . . . . . . . . . . . . . . . . . . 34 Appendix D: Insurance Data, 1988-1992 ................ ...... . .... ... 41 Appendix E: Insurance Providers as Reported by CTCs and Contractors and Addresses oflnsurance Providers . . . . . . . . . . . . 50 Appe n dix F: Sample Request for Conceptual Proposal . . . . . . . . . . 55 Endnotes . .. . . .. . .. .. .. .. . .. .. .. . .. .. . .. .. . .. .. . 62 II
ANALYSIS OF INSURANCE ISSUES INTRODUCTION Florida coordinators and contractors of services for the transportation disadvantaged (TD) experienced a 150 percent increase in insurance costs between 1985 and !989. Dur ing the same period, total costs increased by only 66 percent This report explores the possible causes for the increase in insurance costs; reviews data on insurance costs for 1987 through 1992; examines risk management practices of several TD transportation coordinators and contractors in other states and pro vides general recommendations on stabilizing or containing insurance costs HISTORICAL ISSUES Two pieces of federal legislation the Older Americans Act and the Federal Transit Act, have significantly contributed to the increase in the number of transportation coordinators and contractors who serve the transportation disadvantaged. Ti tle IIIB of the 1973 Older Americans Act provides funding for transportation of the elderly. Tbe 1978 ame ndment s to the F ederal Transit Act established Sections 16 and 18. The former provid es capital assistance for transportation services for the disabled and elderly and the latter provides administrative, operational, and capital assistance for no n urbanized area transportation. During the past decade the growth in nonurbanized and TD transportation was dramatic. Paratransit providers tended to be the extshng human services agencies organized either as private nonprofits or as public units of government. When purchasing vehicle insurance for transportation disadvantaged transportation services, agencies that previously provided these services were U. S. Tra nsit Systems 1981: I ,000 transit systems 1991: 5 000 transit systems 3 900 provide demandresponsive service 3,300 are non-profit able simply to expand existing coverage for new vehicles as necessary. In a number of instances the vehicles used in these programs were not identified as commercial vehicles. This omission would later complicate insurance problems. I
The growth in TD transportation took place against a backdrop of increased insurance costs. According to one study, the overall index for automobile insurance grew by 93 percent between 1977 and 1986. This was attributed to increases in actual and potential losses and to changing public attitudes toward higher claims. Between 1981 and 1986 insurance companies cited a total increase of 79 percent in income from premiums for all property and casualty insurance compared with a 92 percent increase in payouts for losses. During the period of 1977 to 1986, commercial vehicle insurance losses and expenses grew by 185 percent compared with a 119 percent increase for losses and expenses of private automobile insurance. Two major factors were said to influence these increases: I. an increasin g number of claims that reduced the policyholders' surplus; and 2. reduced returns on insurance company investments due to dec l ining interest rates. The first factor was basically due to a larger and more mobile population Changes in land use patterns population, and the number of women in the work force all contributed to increased transportation demand. The i ncreasing number of claims was also partially attributed to the public's attitude toward i nsurance. The insuranc e industry also stated that the incr easing number of veh icles on roadways and longer travel distances contributed to the potential for higher premium costs.' The second factor reduced returns on investments, was influenced by declining interest rates. Another influence was increased underwriting expenses, up 61 percent for the period from 1981 to 1986. Higher overhead costs for insurance companies are also associated with increases in insurance premiums. The net result of the insurance industry's increases in losses over premiums was an increase in liability insurance costs for commercial and private vehicles, most significantly during the years 1983 to 1986, which became known as the 1980s "crisis." Commercia l vehicle liab ility premiums increased 121 percent during the years 1983 through 1986. Physical damage premiums for these vehicles in creased 69 percent. This was in contrast to personal vehicle premium increases of 40 percent and 42 percent respectively. It should be noted that a similar "crisis" occurred in the mid-1970s. Industry leaders state that this phenomenon is cyclical, occurring every five to seven years. It was also during this period that TD transportation coordinators and contractors were identified as a unique market segment whose insurance premiums shou ld be increased because 2
they presented a higher risk expo sure. This higher risk was said to be due to the age and frailty of passengers and inadequate driver training and safety programs.2 The b.igher premiums that resulted posed particular difficulties for TD transportation o perators due to the relatively small size of their operations. The combination of the proliferation of TD transportation coordinators and contractors decreased returns on investments, and losses in excess of premiums may have combined with the failure of the insurance industry to understand fully the nature of TD transportation operations to create the dramatic and sudden increase in premiums. it was not uncommon during the 1980s for providers to report annual increases as high as 400 percent despite favorable loss histories. Perhaps the most significant of these factors was the misunderstanding by the insurance industry of the nature of TD transportation services. As one industry expert stated in 1990: "lnswance offered to [TD ] transportation syst ems is handled by standard markets on a competitive basis. However, [TD transportation] is not well understood by the inswance industry .... As a result of the insurance companies n o t realizing the investment returns they need, a hard market is imminent. In a hard market, insuran ce companies become more selective in the types of risks they underwtite, thus creating less competition and often causing higher insurance premiums ."' FLORIDA'S EXPERIENCE In an analysis of the Florida transportation disadvantaged program's community transportation coordinator (CfC) n etwork for the period of 1985 through 1989, it was found that insurance expenditwes, which included casualty, liability, and worker's compensation, increased ISO percent. lnswance was second only to "services" among the fastest growing expenditures. This translated into a per-trip cost increase from $0.18 in 1985 to $0.35 in 1989, an annualized increase of 18.1 percent. Although inswance costs accounted for less than 6 percent of total operating costs in 1989 inswance costs have been a serious concern to many CTCs. Of the three types of i nswance, the most significant increases have taken place in l iability insurance. Further analysis of insurance premiums and related i s sues was conducted from data provided in the annual operating reports for 1988 through 1992. The raw data for 1988 through 1992, and comparisons of 1990 through 1992 are included in Appendix D. Due to the manner in which the data were reported, it is unclear what the number and types are of transportation coordinators and contractors -public or private; broker or provider of service--that are 3
experiencing increases. A review of the data and the CUTR vehicle insurance questionnaire suggests that the smaUer operations experience more difficulty with vehicle liability insurance costs. (The respondents to the CUTR insurance survey are listed in Appendix C.) During the course of the analysis there was some concern that the growth in insurance may have been understated due to the increase in brokered transportation and the manner in which subcontractors report these and other costs A further analysis of the data submitted by sole-provider CTCs (i.e., CTCs that operate all of the coordinated TD transportation service in their service area.) indicated that any understatement was insignificant. A review of the increases experienced by the seventeen CTCs who were sole providers showed no significant difference from that experienced by all providers who reported during the analysis period. Several issues arise from this analysis. First, the data indicate that a significant increase in insurance costs occurred during the period of 1 985 through 1989, which overlaps the period of the mid-1980s crisis. In other words, to some extent this increase could have been anticipa t ed because the market was "hard." Second the contracting and reporting procedures of the transportation coordinators and contractors indicated numerous changes in providers and, consequently their loss experiences varied from year to year. These changes may have contributed to unfavorable ratings due to a lack of understanding on the part of the insurance companies of t he nature of services provided And, finally, where this understanding did exist, insurance companies may have chosen to increase premiums because of a perceived higher risk exposure In other parts of the country, mass transit and TD transportation coordinators and contractors have found various solutions to the increasing costs of vehicle liability and physical damage insurance. A number of these alternatives were reviewed by CU TR, and several are summarized in this document. NATIONAL DEVELOPMENTS IN TD TRANSPORTATION INSURANCE During the period of 1984 through 1988 almost every state in the country investigated the increase in the costs of commercial vehicle insurance. Some states, as a result of these investigations, developed various arrangements to minimize future increases; these ranged from better risk management to the formation of self-insurance corporations. This was facilitated in some instances by the 1986 amendments to the federal Risk Retention Act. The amendments allow for the formation of "risk retention groups" for the purposes of group purchase or self insurance. The groups are exempted from most state regulation which allows for interstate operation. An overview of eight programs is provided below. 4
Southeastern Transit Insurance Program This program was begun by the Alabama Transit Association, a private non profit corporation representing public and TD transportation coordinators and contractors in the state of Alabama. The insurance program was designed to provide insurance to public and human service transit providers, improve the availability of coverage during unfavorable insurance cycles, provide competitively priced insurance, and join i n surance coverage with risk management training. Soutbeas(ern Transit Insurance Program Began in 1988 with 26 transit systems Partially subsidized by oil overcharge funds 20 percent savings first program year (before subsidy) Significant increases in coverage and number of vehicles Informal group buying pool The program is handled by an insurance broker who presents interested clients to an insurance underwriter. The program is an informal group buying pool with individual ratings and premium assessment. The group's level of premium and losses can be reasonably anticipated based on sample actuarial data. The m i nimum coverage provided is $500 000; $1 ,000 000 is encouraged. The program has been r e latively successful in keeping premium costs at least competitive, despite a change in underwriters. Further the program has been extended to individual properties in Florida, Mississippi and South Carolina, with plans of expanding to Louisiana and the West Coast. California Transit Insurance Pool (CaiTIPl CaiTIP was developed from an insurance feasibility study conducted by the California Transit Association, which recommended that an insurance authority be created to form a self-insurance pool and purchase excess insurance. The purpose of the insurance authority is to provide liability 5 California Transit Insurance Pool (CaiTIP) Began in 1986 with liability coverdge $500 ,000 available through self-insured pool Exce. s s coverage a v ailable through insurance carrier Physical damage program added in 1 990 SIOO,OOO available through self-insured pool Excess coverage available rhrough insurance carrier Group buying pool
protection at a stable price. Costs are expected to be maintained at a lower rate than previously because of reduced co sts (e.g overhead, profit, and taXes) in pool operations. Premiums are assessed based on retrospective adjustment of both pool and individual experience. The program is managed by an i ndependent agency. Participation in the program is limited to public transit systems in the state of California Kansas Public Transit Risk Purchasing Group (KRPGl KRPG was established by the Kansas Public Transit Association with assistance from the Kansas Univer sity Transportatio n Center and the Kansas Department of Transportation. The group worked with an insurance and risk management broker to develop an insuranc e plan. The purpose of the program is to eliminate or reduce premium increases, maintain stable and Kansas Public T ransit Risk Purcbasing Group Non-profit organization Commercial automobile liability and physical damage Stable source of insurance; competitive premiums Safety and risk management activities quality insurance coverage, obtain competitive premiums that reflect the loss ratio of the group, and provide safety and risk management activities. The group provides commercial vehicle liability insurance with limits of $300,000, $500,000, or $1,000 000. Other available coverage includes commercial vehicle physical damage and various lines of business insurance Participation is open to members of the Kansas Public Transit Association, which includes public and non-profit paratransit providers in the state of Kansas. Each account is individually underwritten and priced. Transit Mutual Insurance Corporation of Wjscon sin ITMICW) TMICW evolved from the Wisconsin Mutual Transit Insurance Commission, which 6 Transit Mutual Insurance Corporation of Wisconsin Pool began with $2,400.000 reserve and $1,000,000 complement ing dues Unused premiums returned to members Coverage range: $750,000 $1,500,000 GeneralLy limited to public municipal systems
was created by state law in 1981. The purpose of the corporation, a joint self-insurance program, is to spread the risks. The program partic ipants are municipal transit systems. Premiums and the $1,000,000 collected annually in the form of dues are based on system size and loss experience. U nused premiums are returned to members as a cash rebate at the end of the year For the most part, TD transportation coordinators and contractors purchase insurance through con ventional means. Some sy stems are eligible for pool participation through city or county programs. Other States' Insurance Initiatives Minnesota has two insurance pools for public transit systems. The League of Minnesota Cities Insurance Trust Property and Liability Progr am (LMCIT) provides combined liability and physical damage insurance coverage of up to $600 000. The Minnesota Counties Insurance Trust provides broad coverage including transit needs. Administration underwriting, rating, and risk management serv ices for the programs are provide d under contract by independent agencies. Private non-profit organizations are Other States' Insuranc e Initiat ives MiNlesota Two insurance pools for public transit systems Montana t988 study reeommended group insurance program Oklahoma Program similar to Wisconsin Texas Self-insured program not included in either of the programs because the majority tend to be small operations and perceived as higher risks The Transportation Division of the Montana Department of Commerce, which administers the FTA Section 16 and 18 program funds conducted studies on ins urance in 1985 and 1988. The 1985 study showed that substantia l increases in insurance costs had occu rred Based on information provided by the I 988 study, recommendations were made to the Section 16 and 18 prov id ers to aid them in acquiring insurance coverage at reasonable ra tes. These re<:ommendations included setting liability limits of $500,000 to $1,000,000, s oli c iting bids for insurance, relating premiums to deductibles, and improving risk management procedures. A TD transit group insurance program was also recommended but has not been established. Oklahoma has established a program similar t o that of Wisconsin Texas also has developed a self-insured program. 7
The majority of all these programs were begun between 1986 and 1988, at the end of the "hard" insurance market. For the most part, the programs have met their objectives and there is some reason to believe that they have had a significant impact on the market. Opinion is mixed as to whether the current insurance market is hardening and where there is agreement that the market is hardening, there are various reasons as to why. There is some indication that the market may be hardening regionally and also that artificially low pricing may be occurring in efforts to increase market share.' One bus insurance specialty company stated, "Right now there are too many companies chasing too linle business and the problem is that some of those doing the chasing don't really know very much about the business they are chasing." It is possible that the amount of available premium has deereased due to the number of group or selfinsured programs and that higher premiums may be charged to some segments of the transportation industry to compensate for this loss. In addition, one major insurance company withdrew from the market in 199 I and a second company has made major adjustments to its insurance product lines The company that withdrew from the market also withdrew in the mid-I980s, just prior to the crisis. The prognosis seems poor. Interest rates are low, indicating poor returns on investments. Insurance companies have experienced record losses due to the number of natural disasters that have occurred this year If the market is not currently hard it may become so within the coming year. ISSUES FOR FLORIDA'S TD SYSTEMS There are several factors related to Florida's transportation disadvantaged program and the state, in general, that could lead to categorization of F lorida's TD operators as a "high risk" group by the insurance industry. These characteristics include: The adequacy of driver training and safety programs; The age and frailty of the population or ridership; The meehanics of service delivery; The relatively small size of transportation systems ; and The types of vehic les used to provide the service Each of the above characteristics has been examined to determine the significance, if any it may have in regard to insurance increases. 8
Adequacy of Driver Training and Safety Programs. Ideally, each transit system should have a risk management program that provides opportunity to evaluate the potential for risks, provides a means for assuming or transferring risks and helps to control losses. A basic risk management program includes safety, training, accident reporting, and v ehicle maintenance. Driver training and safety programs are essential in controlling losses. The Florida Administrative Code sets minimum guidelines that, if complied with, are the basics of a good risk management program. The TD transportation attitude and needs survey conducted for the Statewide Five-Year Transportation Disadvantaged Plan addressed safety and training needs in the section on training and technical assistance. Fifty-seven operators responded to the survey. The majority of the m agreed or strongly agreed that there was a need for additional training in driver safety driver sensitivity, S urvey Results Training and Technical Assistance 1. Please indicate the e x tent to which you agree that your organl:tatlon eou ld use additional T.O. training or technical assistanee (Areas named most frequently are listed below.): Driver safety Driver sensitivity roc policies and procedures Insurance procurement Vehicle Maintenance Purchasing 2. What types or T.D. training and technical assistance, if any, have you received during the past two years? (Types named are listed below.) TDC policies and procedure s Drug t esting Driver safety COL training Program management Maintenance Passenger assistance techniques CPR Sensitivity First Aid Defensive Driving TD Conunission policies and procedures, and vehicle maintenance. Almost one-half of the respondents agreed or strongly agreed that assistance was needed in insurance procureme nt, and one-third agreed or strongly agreed that assistance was needed in purchasing. The frequency of training and technical assistance needs for respondents in other areas was not as significant. Additional information regarding insurance and risk management has been solicited since the attitudes and needs survey. A follow-up insurance survey was conducted and one-third of the curre nt cres and seventeen contractors responded. (A copy of the Vehicle Insurance Questionnaire is included in Appendix A ) All of these respondents provide their personnel with training in the areas of general orientation, cardiopulmonary resuscitation, passenger assistance, and accident reporting training 9
All respondents indicated that they have safety programs. Only two respondents, sub contractors, indicated that their safety programs were not written. All respondents indicat ed that they have accident procedures. Only one indicated that the procedures were not written. The differenc e between the two surveys seems to indicate that a number of the training needs have been addressed. The high incidence of documented safety programs and accident procedures seems to indicate that at least a core group of crcs and contractors have good risk management practices. Age and Frailty ofTD Persons. Because the defin ition of"transportation disadvantaged" includes many elderly and/or frail persons, the industry sees a potential for more claims from providers of TD transportat ion. Further, the general aging of t h e United States population the increase in Florida's population due to in-migration, and the relative proportion of Florida's population that is elderly may all be contributing factors to increased insurance premiums. MechaoiS of Service Delivery. TD transportation service delivery may be one area for potential misunderstanding by the insurance industry. The federal legis lat ion that has given rise to this type of transportation encourages coordination of public and private providers, and in some instances, mandates the organizational structure of funding recipients. Two-thirds of all U S. transit providers in the U S. are private non-profit providers of services to the elderly and disabled. By and large, these organizations are not primarily incorporated to provide transportation. Their expansion into the transportation ind ustry has been driven by a need to provide TD services and fostered by public funding. Florida's TD transportation service is provided through an elaborate network that incl udes sole providers, institutional ridesharing, purchase of service contracts and multiple-area providers. In addition to the network's complexity, its contractors tend to change in response to both service needs and operator capabilities. One characteristic of these types of networks is the ease with which people in the sys tem understand it and the difficulty that outsiders have. Another element of this issue, which is discussed in greater detail below, is that of the types of equipment--commonly, modified vehicles--used to provide the service. Also, in many instances, the service is provided door-to-door rather than curb-to-curb. These characteristics of service delivery are not generally understood by the insurance industry and the misunderstanding has contributed to higher premiums 10
Size of Transportation Svstems. In 1986 the average number of vehicle s per agency for rural and TD transportation agencies in the U.S. was seven.' This figure represents Sections 16 and 18 agencies and subcontractors only. The average fl eet size for all respondents to the CUTR vehicle insurance questioMaire is seventeen. In contrast, the national average for Section 9 urbanized transportation bus fleets is 97 . Although the number of urbanized systems is comparatively small, their operations tend to be better understood by the insurance industry. In addition, the larger fleets are more attractive in terms of the level of premium available. Further, the size of urban transportation operations allows for more opportunities for risk management, including the level of risk that the systems are able to retain or self-insure. It is common practice for such systems to self-insure physical damage coverage, to retain substantial amounts of funds in the form of reserves and to purchase excess liability insurance coverage, usually beyond the first $50,000 to $100,000. Most TD transportat ion coordinators and contractors are unable to self-insure physical damage coverage and tend to have relatively smal l deductibles, sometimes as low as $250 or $500. In liability and physical damage insurance the lowe r the amount of insurance, the higher the unit cost The most expe nsive amount of coverage by far is fr om $0 to $5,000.' Types of Used. An insuranc e industry expert stated, "The unique characte ristics of modified vehicles which transport the disabled and the frequency of claims resulting during loading and unloading of wheelchair passengers have baffled many insurance companies not familiar with { TD) transportation." The TD transportation services for Florida's transportation disadvantaged are provided with a variety of vehicles including automobiles, taxicabs, vans, minibuses medi cabs and school buses. It is customary for the insurance industry to develop rates for each type of vehicle and the v ehicle's use. T h e vehicle use and mix of types may be perceived as a potential for higher risk exposure. A sub-factor here is whee l chair lifts and tiedowns. Unfortunately, the manufacturers of lifts and securement devices have not been able to keep abreast of the de vel opm ents in wheelchairs and scooters, which also results in higher risk exposure. Summary. Increasing or unstable insurance premiums have many repercussions. Community transportation coordinators and the state s transportation directors view insurance costs as a barrier to veh i cle use. Some contractors report that they are unable to use school buses for TD transportation because they have been advised by their agent that an increase in premiums would result Some coordinators report that tbe overall cost o f insurance premiums has a II
negative effect on service delivery. Where revenues are fixed, increasing insurance costs decrease the amount of revenue available for other operating costs. Further the inability to reasonably pred ict rising costs creates budgeting difficulties. An unanticipated 254 percent increase in one year--as experienced by one Florida operator--is quite difficult to absorb. A few contractors have reported a lack of available or i nterested insurers. This condition has led to the need to secure "assigned risk" insurance coverage. There also has been some concern expressed about increases in workers' compensation costs. On average, Florida businesses experienced increases of approximately 25 percent in 1991. T his increase in premiums was approved by the Florida Insurance Commission to offset losses by insurance companies in the state's workers' compensation system The workers' compensation premium increases do not appear to be a problem unique to Florida's transportation industry The effect of increased insurance costs may have some possible remedies through legislative action. The insurance industry states that there is a need for tort reform, establishing caps to liability. Other experts within the industry feel that this remedy is sufficient only until it is tested in court. The Florida Administrative Code, Chapter 14-90, sets forth the minimum requirements for equipment specifications and risk management practices. These requi r ements adequately provide guidance to minimize losses and service disruptions. Overall there are many factors about the TD services for Florida s transportation disadvantaged that can be interpreted as high risk exposure; however, there are two considerations that should be noted: I. The operations are well-regulated and have the basics of good risk management practices; and 2 Florida's TD transportation services for the transportation disadvantaged are similar to operations in other states that have been able to realize stable insurance costs and improve their risk management practices. It appears that the increases in costs for Florida s TD transportation operators may be due, in part, to a lack of understanding by the industry of the operations. There are quite a few methods of overcoming this misunderstanding as other states have demonstrated. 12
GENERAL FINDINGS Responses to the CUTR vehicle tnsurance questionnaire indicate that Florida's TD transportation coordinators and contractors for the transportation disadvantaged ha v e basica ll y good risk management practices. Despite the demographic factors and complexity of serv ice delivery efforts are made to be as prudent as possible. The size of the individual systems need not necessarily be a problem because in total the state's TD operators are a source of significant revenue for insurance carriers (The CTCs who responded to the CUTR insurance survey--one third of the t otal CTCs--pay nearly $500,000 in premiums each year.) The issue o f m i x of vehicles and related equipment become s less of a burden when consideration is given to the risk management practices. Generally, the i n itia l step suggested by insurance experts is to develop a more cohesive group in terms of risk management practices. Contracts for service providers should clearly state the safety program, training accident, and vehicle maintenance requirements A number of these elements are adequately outlined in the Florida Administrative Code; however there is a humanitarian obligation that is often associated with TD transportation services that goes beyond legal requirements.& This obligation is usually incorporated into risk management through "prudent" practices Such a risk management program would include the e le m e nts outlined in the Code along with the following: Safety Program Designation of an employee responsible for safety program admi n istration Quarterly safety meetings Defined role for the insurance company, agency, or safety engineer Driver i n centive program, including the definition of a chargeable accident References to claims reporting procedures, training programs, and maintenance procedures Comprehensive Training Program Classroom instruction Off-road training On-road training without passengers Supervised on-road driving with passengers Probationary period of actual in-service driving 13
Accident Reporting Procedures Designation of an employee responsible for reporting accidents to the insurer and making other contacts Definition of occurrences, including accidents and incidents Step-by-step reporting procedures Vehicle Maintenance Cons ideration of safety components when developing specifications Daily vehicle inspection by drivers Formal montbly vehicle maintenance inspections Tbe second consideration is risk assumption. Risk assumptio n is simply determining the level of insurance coverage that is really needed This is essentially a property-by-property issue Most service providers do not need first-dollar coverage on comprehensive and collision insurance However, most do need to conduct an in-house evaluation and identifY the costs associated with these types of coverage. This is a simple three-step process: IdentifY the premium s paid for comprehensive and collision; Identify the in-house maintenance costs; a nd IdentifY the administrative costs associated with managing insurance. After the costs are identified, they should be compared with the loss experience in these areas. If the cost of coverage greatly exceeds the amoun t paid for claims, for example, costs being two to three times the amoun t of claims the decision might be to seek a higher deductible for this coverage. It should be noted that this may serve to lower premiums but may also increase administrative costs. The administrative detail that bad previously been assumed by the i nsurance provider in exchange for the lowe r deductible must be assumed in-house or provided by a third party. Liability coverage is not so simple because it is not as easy to predict; however some relief can be obtained by raising deductibles. On the other hand, the limits in the transit industry generally run from $500,000 to S I ,000, 000. Currently, Florida TD servi c e providers are required t o carry at least $100,000 per person and $200 000 per occurrence. The amount of risk that is not assumed is transferred by purchasing insurance coverage. It is possible to negotiate with insurance providers to get assistance in developing risk 14
management programs that can be translated intO greater coverage or reduced premiums and more stable costs. INSURANCE PURCHASING ALTERNATIVES Once the amount of coverage needed has been determined there arc several options in purchasing insurance. Some service providers have found relief by si mply going out on bid every three years This practice is gener ally fine when the market is soft. In a hard market, the purch aser is very vulnerable. As has been discussed earlier, a number of Insurance Purchasing Alternatives Group Buying Pools Mass Marketed Risk Market Assisted Self Insurance service providers have formed various typeS of groups to stabilize their costs. These groups basically take one of the five forms discussed below. Group Buying Poob Group insurance buying pools are common in th e public sector. Many municipalities form such groups to purchase automobile comprehensive and collision coverage and workers' compen sation. Over the past five years, these have become more common in the ttan sportatio n industry. The Southeastern Transit Insurance Program is a "ficti tious group. K.RPG, CaJTIP, and TMICW are formal shared-risk programs. Generally, such groups experience IS to 20 percent reductions in costs in normal or soft markets Even when the market is hard, their increases are not as dramatic, and costs are relativ ely stab le The I 986 Federal Risk Retention Act has facilitated interstate ac tivities by such groups. The informal groups may realize some added savings because they have not formed new en t ities. The administrative or overhead costs are generally assumed by the insurance agent, broker, o r underwriter. In addition, because risks are not shared, individual purchasers may incur costs lower than the average based on their loss experiences. On tbe other hand, these groups are somewhat vulnerable to the market. When the market is hard, they may not be as attrac[ive a nd may lo se an underwriter Th. is can be particularly burdensome if the agent or underwriter is not commi tted [0 the group. IS
Fonnal groups may have some increased costs due to program administration, which is usually contracted to a tltird party. These groups can still be somewhat vulnerable in hard markets. Some groups lessen this by self-insuring a substantial amount of the deductible and purchas ing only excess coverage. This usua lly is not feasib le unless premi ums are at the $250,000 to $300 ,000 l evel. Mass Marketed Insurance Purchasing Mass marketed insurance is very similar to group buying pools. The major difference is that it is insurance-provider driven. An insurance agent or broker develops an industry or market segmen t plan for a group and goes out to sell the plan to interest ed underwriters A compe titive e nvironment is created where underwriters see a substantial amount of premium and offer goo d rates. Others in the indu stry or market becom e interested in group participation because of the reduced rates. The savings during a normal or soft market are similar t o that of group buying pools. How e ver, in a hard market, similar vulnerabilities exist. There are little or no direct administrative or overhead costs because the services are provided by the insurance agent or broker and underwriter Again, the key to stable costs is the lev e l of commitment by the insurance industry. Assigned Risk Insuranc e P u r s haing As sig ned risk pools are cov erage of last resort. When the market is hard, insura n ce companies may "pull out" on writing some types of coverage. Based on the amount of business they are doing in a state, they are required by law to continue to write a certain percentage of insurance for "high risk groups. The premiums tend to be higher and the coverage limits lower than the s tandard The positive feature is that availability is guaranteed. Market Assistance Purchasine Marke t assistan ce programs are similar to assigned ris k pools. Some insurers feel that it is their social responsibility to provide coverage to high risk groups. This is usually not an alternative in a hard market because the purchaser is subject to the same experiences as being in an assigne d r isk pool-high pre miums and low coverage--and availability is not always g uaranteed. 16
Self-Insurance Retention or Trusts Another option is that of self-insurance or trusts. These are commonly associated with vehicle physical damage and workers' compensation because the loss expedence is relatively easy to predict. Most transportation properties that are "self-insured" simply have large deductibles. These programs can have high front-end costs. They require very detailed analysis and evaluation in order to accurately access actuadal credibility. As is the case with formal group buying pools, a level of premium of $250,000 to $300,000 should be available before this becomes feasible. In addition, if a group decides to self-insure, it is vulnerable to one bad operator within the group or one major loss. It is a shared-risk experience. Likewise, there are administrative and overhead costs associated with self-insurance that may also reduce savings. RECOMMENDATIONS As discussed earlier, the basics of good risk management are already in place for Flodda' s TO transportation operators. This is essential in controlling losses. The next level of effort is to market the TO service providers to the insurance industry. Given the diversity of operations, an informal group may be the most feasible. In regard to a formal group, one service provider stated: "We would have to be assured that all the other participants were actively using a good safety plan. We have been given excellent marks on our van records and maintenance. Our hiring practices are stringent and driver education ongoing. We are proud of our operation. Going into an insurance pool with other organizations that might not be as committed to safety would not be to our advantage. Therefore, perhaps you need some way of making participants adhere to a stdct safety plan, thus guaranteeing that every effort has been made to provide safe transportation and lower premiwns." An informal group whose members are i ndepe ndently rated would allow good operations to maintain their good ratings and provide opportunity for those operations that are not so good to improve. A committed i nsurer who understands TD transportation services can assist with these issues and with others that are not directly related to costs. The following three-step plan is recommended. 17
I. Use the insurance survey results and the insurance cost information in Appendix B to develop a request for conceprual proposals for an insurance program. (A sample request for conceprual proposals is included in Appendix F.) This gives the insurance industry an opportunity to sell itself. Given the large amount of total premiums available among TD coordinators and conb:actors some proposals may be rather innovative Emphasis should be placed on liability coverage. Other lines, such as collision and comprehensive, are generally easy to obtain. Most proposers will also make an offer on workers' compensation. It is suggested that the proposal be distributed by an independent organization or committee such as the Florida Association of Community Transportation Coordinators, with representation and technica l assistance provided to the organization or committee by the T ransportation Disadvantaged Commission, Florida Insurance Commission, and Department of Transportation. The purpose of the committee or organization would be to provide oversight for proposal distribution and review and insurer selection process The actual labor--proposal development, distribution, collection meeting arrangements, and so on--could be provided by TDC staff Have the proposers identify deficient risk management areas. 2. Establish a program based on the proposals lt may be feasible to combine the elements of several proposals to develop such a program. An informal group, without shared risks, is a good beginning. As the program matures, other options may become more attractive. 3. Monitor the program annually It may be a good practice to request conceptual proposals every three years The issues of the mix of vehicles -school bus use, in particular, and use of volunteers have not been extensively addressed in this document. T he vehicle issue was investigated as a result of information provided in response to a survey conducted by the Department of Education. 18
When asked what barriers prevented the use of s chool buses on a re g ular basis, insurance cost was the fourth most f r equent response among district school transportation directors and tied as the second most frequent response among community transportation coordinators Upon further investigation the appropriateness of school buses for transportat i on disadvantaged transportation services was more of an issue than actual insurance cost. Other providers o f transportation disadvantaged transportation services in Florida have found favorab l e insurance coverage for school bus use and volunteer drivers through some of the insurance providers listed in Appendix E (Names and addresses of insurance companies p r oviding coverage to respo n ding CTCs and contractors are listed in Appendix E.) Legislative relief is not recommended as an option at this time The experiences of the transportat i on coordinators and contractors have been such that stable premiums seem to be more of an issue than actual costs This problem may best be remedied by improving risk management practices. A l so, some of the CTCs and contractors are already participating in group programs, such as the Southeastern Transit Insurance Program and the program active in the Panhandle; others are realizing some relief through self-insurance or as part of county or municipal policies; others are still exper i encing increases, and others are not. T he point is that transportation disadvantaged transportation services are very diverse and legislation may be beneficial to only a small group of contractors, at the expense of others. The Transportation Research Board is convening a seminar on tort liability and risk management in June 1993 The TDC should seek to either send rep r esentatives to attend tbe seminar or receive copies of the proceedings FU T URE IMPLICATIONS Given the losses that the industry has sustained this year due to natural disasters it may be difficult to get rates as compet i tive in a group plan as those that were available two or three years ago. However, group activity at this time can serve to reduce the rates that would be realized without such an arrangement. There also are benefits other than reduced prem i ums to be realized through the establishment of a group. Stable premiums or increases, improved risk management practices, and committed insurance providers are a few of these benefits. Transportation coordinators and contractors in other states have developed a l ternatives to individual insurance purchases that range f r om annual bidding t o trusts. A number of the 19
providers or groups who have developed these alternatives have operations similar to those in Florida. It is recommended that such alternatives be explored for the TO transportation coordinators and contractors. 20
APPENDIX A CUTR's TD Vehicle Insurance Survey for CTCs 21
CTC Questionnaire TO VEHICLE INSURANCE SURVEY lnatructlons Please answer questions below as completely as possible. If you do not know the precise answer to a question, please provide your best estimate. If a question does not apply to your organizat i on, please write N/A. Date : --------Coordinator Name : -----------------------------Address : -----------------------------Service Area: -------------------------------Contact Name For Operating Information : --------------------Tille: Contact Name For Insurance informat i on: Title: Year your organization became a CTC: Coordinator System (check one only): Complete Brokerage Partial Brokerage Sole Source Phone Numbe r. ------------Phone Number: Coordinator Type (check one only): 22 Private Non Profi t Private For-Profit Government Section 9 Transit System Other (Explain):
Service Information 11 Please estimate the total miles for each type of service: . Pravl
Drfvtr Information (cont.! 81 Please check the appropriate box ij the answer to the following questions is yes: Quntlon Full-Time Part-Timt VotuntMr Drivers Drivel'S Drivers Prior to hiring or just after hiring do you c heck the driving records of. Do you check the driv i ng records of: Prior to hiring or just after hiring, do you require a physical exam for. Do you require Qeriodic physical exams for: Prior to h iring Of' just after hiring, do you require drug tests for: Do you requ i re l!!!riS!!:!ic or random drug tests for: Saftl'l and Training 9) For each category below, indicate the number of curTent drivers who have received training in each category : Type of Training Full-Time Part-Time VoluntMr Drtvtra Drivers Drivers Genera l Orientation Defensive Driving Fin;t Aid Cardiopulmonary Resuscitation Passenger Assistance Training Accident Reporting Other Other 24
Safety and Trai ning (cont,l 10) Please c heek the boxes that descfibe t he emphasis on tra ining for each ca t egory Type of Training Provide Require Encourage Do Not Address General Ori enta ti o n Defensive Driving First Aid Cardiopulmo na ry Resuscitat io n Passenger Assistance T r aini ng Acc i dent Repo rt i n g Othe r Olher 11) Do you have a safety program ? Yes No If yes is it in writing ? Y es No I f yes please attach a co py. 12) Do you have an accident reporting proc ed ure? Yes No If y es is i t in writing? Yes No If yes please attach a copy 13) Do you requ ire drivers to wear seatbelts? Yes N o lll!!Y!l!RCe lnfonnation 14) Please send a gomp!ete copy of your current automob ile, general, and excess/umbrella liability policies 15) Are you r vehicles insured on a policy lha t covers vehicles of another organization (e g .. county)? Yes No II y es. explain: 2S
I nsurance lnfonnation lco nll 16) Please indicate the carrier name for each type of insurance: Property: Automotive: Workman's Comp: Excess/Umbrella: Loss lnfonnatlon 17) Please complete the attached Loss History form. In addition, please request a copy of your Loss H istory Runs for the l ast five years of automobile, general a n d excess/um brella liabil ity policies from your insurer. Please complete this questionnair e and ret urn i t as quickly as possible. The Loss History Runs can be forwarded at a l ater date. If you need assistance from CUTR in gett ing the runs, a sampl e l etter is included that gives your insurance company permission to send information to u s 26
Loss l nfonna tion (cont.) LOSS HISTORY Please list your veh i cle-re laled accident cla i ms since 1987 for directly owned vehic l es only DUP LICATE IF NECESSARY. (Note Shaded areas are examp l es) Liability Physical Damage Date Description To Paid Reserved' Total' Owned Vehicles 3-18' -88 Our vehicle .rear,ended other $5,000 $10 680 $200 vehic le 8-25-89 Passenger slipped i n bus $11,200 0 $11, 200 0 1-25-90 Our vehicle s i deswiped gravel $350 $40 000 $40 350 $3, 200 tnuck That you and/or your insurer e it her have paid or have estimaled will be paid In the future for the described accident. I f you don't have you r insurer's loss figures, call your agent for details 27
Issues 18) a) Are you interested in participa ting in an i nsura nce group or pool? Yes _ b) 'M1at incentives should a group or pool offer? Stable Premi ums Reduced Premiums Risk Management Driver Tra i ning Othe r (Spec ify ): ---------c) 'M1at i nsurance prob lems or concerns have you experienced since 1987? No __ d) Please comment on other insurance issues and provide any sugge.stions you may have on how best to address the i nsurance problems fa ced by TD operators, 28
APPENDIX B Summary of Responses to CUTR's TD Vehicle Insurance Survey 2 9
Summary of Responses to TO VEHICLE INSURANCE SURVEY A total of 17 CTCs and 18 contractors responded Average number of years organization a CTC (asked of CTCs only): 2 Average number of years organization contracted with CTC (asked of contractors only): Organization type : . Number of CTCs Type Of Number of Type of Neiwork Organization Contractors Total I Sole Partial Complete Source Brokerage Brokerage < Private No n-Pr ofit 5 6 6 0 12 Private For-Profit 13 0 0 2 2 Government Agency 0 0 1 0 1 Public Transit Agency 0 1 1 0 2 Tota l 18 7 8 2 17 Service l nfonmation 1) Please estimate t he total miles for each type of service: Service Provided by Contractors Service Provided by CTCs Type of Est. 1991 SeNice Est. 1990 Esl1991 Est 1990 Total Miles Total Miles Total Miles Total Miles Fixed R oute 1.119.541 1 ,3 13,155 351,606 171, 240 Demand Responsive 897,367 1 558,244 3,719,471 4,065 326 Subscription 22,784 232,964 155,649 381, 208 Charter 0 0 0 0 TOTAL 2,039,692 3,104,363 I 4,226,7261 4,617,774 1 30
Vehicle lnfonnation 2) Number of vehicles operated by reporting CTCs: 362 3) Number of vehicles operated by reporting con t ractors: 4) Percentage of wheelchair trips reported by CTCs and contractors for 199 1: 19%. 5) Do you or your contractors use school buses for transportation (CTCs only)? 6) Do you or your contractors provide insu rance for the use of school buses ( CTCs only)? (56% only includes those CTCs that answered yes in question #5) Driver lnfonnation 7) Number of Drivers with Tota l Number of Drivers 3 or More Years Experience CTCs Contractors CTCs Contractors Full-lime Drivers 362 194 118 140 Part Time Drivers 16 9 39 88 17 Volunteer Drivers 7 0 3 0 8) Please check the appropriate box if t he answer to the follow in g questions is yes: Percent of Percent of Percent of Full-lime Part-Time Vo lunteer Question Drivers Drivers Drivers CTC Cont. CTC Cont. CTC Cont. Prior to hiring or just after hiring do you 100% 89% 100% 92% 0% NA check the driving records of: Do you periodically check the driving 100% 89% 100% 92% 0% NA records ot. Prior to hiring or just after hiring, do you 100% 89% 100% 92% 0% NA requ ire a physical exam for: Do you require period i c physical exams 100% 89% 100% 92% 0% NA for: Prior to hiring or just after h iri ng, do you 73% 71 o/o 79% 67% 0% NA require drug tests for: Do you require periodi c or random drug 73% 71% 79% 67% 0% NA tests for: 31
Spfetv and Training 9) For each category below, indicate the number of current drivers who have received train ing: (The table shows the percent of drivers who have received all of the following types of training: General Orientation Defensive Driving F irst Aid, Cardiopulmonary Resuscitation, Passenger Assistance Training and Accident Reporting) . Percent of Percent of Percent of Full., Time Part-Time Volunteer Drivers Ddvers Drivers ,.ere Cont ere Cont. CTe eont 88% 93% 85% 92% 0% NA 10) Please check the boxes that describe the emphasis on training for each category. .. Percent That Percent Tliat Percent That Percent That Do Not .. Provide Require Encourage Type of Training Address CTC Cont CTC Coril CTC Cont CTC Conl General Orientation 7 1 78 53 44 -Defensive Driv i ng 41 44 53 50 18 11 6 6 F irst Aid 41 44 59 78 12 -12 CardiopulmOnary Resuscitation 59 44 59 78 --6 -Passenger Assistance Training 71 50 53 78 --Aocident Reporting 71 67 59 56 ---.. 32
Safety and Training (cont.) C T Cs Cont!!ctors 11) Do you have a safety program? Yes 100% Yes92% I f yes. is it in writ i ng? Yes 100% Yes 83% 12) Do you have an accident reporting procedure? Yes 100% Yes 89% if yes. is i t in writing? Yes 1 00% Yes 89% 13) Do you require drivers to wear seatbelts? Yes 100% Yes 100% lnsuranc! I nformation 14) Please send a complete copy of your current automobile general and excess/ u mbrella liabil ity policies. 15) Are your ve h icles insured on a policy that covers vehic l es of another organizatio n (e.g county)? 33 CTCs Yes 29% No 65% Contractors Yes 17% No 83%
APPENDIX C Survey Respondents 34
Survey Respondents (Those names followed by an ..... denote organiza t ions inte rested in an insurance group or pool.) CTC Clay County Clay County Council on Ag ing, Inc 604 Walnut Street Green Cove Springs FL 32043 Sheryl Hartzog Transportation Coordinator 284 5977 CTC Duva l County Comsls Corporation 4161 Carmichael Avenue Jacksonville FL 32207 A. DeCandis General Manager 904/395-4920 CTC Escambia County Comsis Corporation 5514 N. Dav i s Highway Suite 117 FL 32503 Les Solberg Manager 7 Laurie Fanln 415/324-0606 35 CTC County F l agler County COA & Community Serv i ces, Inc 1000 Belle Boulevard Palm Coast FL 32137 James W. Allen Operations Manager 904/437-7272 Benigna Zayco Fiscal Manager 904/437.7280 CTC Gulf County Gulf County Transportation P .O. Box 296 Port St. Joe, FL 32456 Chery l G Fitzgera ld Executive D i rector 94/229 Hannon Insurance Agency 904/2.27 133 CTC Hernando County Mid Florida Community Services, Inc 820 Kennedy Box 896 Brooksville, FL 34601 Bill Klark Transportation D irector 904/799-1510 Christine Batten Finance Officer 904/796
CTC Hillsborough County Hillsborough County Board of County Commissioners P.O. Box 1110 Tampa, Fl 33601 Sidney Moss D i rector, Department of Social Services 8131272-5074 Charlie Down i e General Insurance R isk Management 8131272-5802 CTC Holmes, Walton, Washington Counties Tri-County Community Council, Inc 301 N Oklahoma Street Bonifay, Fl 32425 Bettie l. Slay Executive Director 904/547-3688 Janice Richards Bookkeeping Director 9041547-3688 CTC Indian R i ve r County I nd ia n River County Council on Aging 694 14th Street Vero Beach Fl 32960 Arlene Retcher Executive Director 407/569-0760 Mary Boyle Assistant Director 407/569-0760 36 CTC lake County Lake Sumter Mental Health Center & Hospital P.O. Box 491000 leesburg Fl 34749-1000 Joyce Wellman Devitt Administrative Assistant 904/360-6620 JoAnne Brown Administrative Assistant 9041360-6575 CTC Marion County Marion County Senior Serv i ces Transportation 1644 N.E 22nd Avenue Ocala, Fl 34470 Harold Besley Transportation Manager 904/622-2450 Juanita Beasley Assistant D irector/Fiscal Office 9041629-8661 CTC Nassa u County Care-A-Van Transportatio n 1389 Hospital Drive Fernandina Beach, Fl 32034 Debbie Tucker Operations Manager 904/261-0700 Chris Ward Fiscal Officer 904/261 -0701
CTC Okaloosa County Oka loosa County Coordinated Transportation, Inc. 105 Santa Rosa Boulevard Ft. Walton Beach, FL 32548 Ruth R. Lovejoy Executive Director 904/833 -9 165 Lee McCallister F i scal Manager 904/833-9166 CTC Pasco County Pasco County Public Transportation Division 5418 Sunset Road New Port Richey, FL 34652 Michael H. Carrol l Assistant STAR Transportat i on Manager 813/84 7-8031 Jane M. Calano Risk Manager 813/847-8535 CTC Polk County Polk County Transportation System Polk County Board of County Commissioners P O. Box 2528 Bartow, FL 33830 Roger S Eckert Transportation D irector 813/534-4036 Cecil Gunter Risk Management Director 813/534-6498 37 CTC Sarasota County Senior Friendship Centers I n c. 1888 Alderman Street Sarasota FL 34236 Jim Van Pelt Transportation Director 813/957 1878 Sue Berger Admin istrat ive Supervisor 813/957-3094 CTC Wakulla County Wakulla Transportation P.O. Box 537 Crawfordville, FL 32326 Nell Rozar Transportation Coordinator 926-7145 Linda Sasser Bookkeeper 926-7145 Contractor DeSoto, Hardee Highlands. Okeechobee Counties Florida Trai l s. Inc d/b/a/ Annett Transportation P O Box 33 Sebring, FL 33871-0033 Robert v. Van Allen Personnel & Safety Director 813/385-5547 Ann Annett 813/385-554 7
Contractor Duval County Buggs Transportation Service P.O Box 2125 Jacksonville. FL 32203 Cathy Outler Office Manager 904/398-1597 Cathy Outler Office Manager 904/398-1597 Contractor Duval County Ebony Cabs, Inc. d/b/a Checker Cab Co. 5819 Moncrief Road P.O. Box 9998 Jacksonville F L Luella J Robinson, President/General Manager William Knox Operations Manager 765-9999 Luella J Robinson President/General Manager 765-9999 Contractor Escamb i a County Paratransit Services of West Florida, Inc. 1000 W. Leonard Pensacola, FL 32501 M i chael Gates Operations Manager 904/432-0177 Ben Earty President 904/469-1620 38 Contractor Glades, Hendry Lee Counti es Glades Area Assoc. for Retarded Citizens Inc. 601 W. Canal Street N. Belle Glade F L 33430 F. Scot Kannel Executive Director 407/996-9583 Sharon Peace Assistant execut i ve D i rector 407/996-9583 Contractor Hardee County H.O. P.E. of Hardee P.O. Box 1763 Wauchula, FL 33873 Ann Martin Execu t ive Director 813/883-2022 Hardee County Personnel Office 813/773-2161 Contractor Indian River County Veterans Counc i l of I ndian River County 1840 25th Street P O. Box 2164 Vero Beach, FL 32960 C. Vincent McCann Veterans service Officer 4071770-5035 C. V i ncent McCann Veterans service Officer 407mo-5o3s
Contractor Palm Beach County Spectran Pa l m Beach Tra nsportation 1700 N. F lorida Mango Road West Palm Beach FL 33409 Lynda Adams Supervisor 407/689-4222 Bob Ackerman Director of Safety 407/689-4222 Contlactor Pasco County Cam-Jo, Inc. P.O. Box 14907 Clearwater, FL 34629 Nicholas A. Cambas President 8131726-9776 John A. Favata Safety Di rector 813/726-9776 Contractor Pinellas County Pinellas Association lor Retarded Children 3100 7th Street N. St. Petersburg, FL 33710 Donald Powell Director of Operations 8131345-9111 Donald Powell Director of Operations 813/345-9111 39 Contractor Pinellas County Handicap Helper Inc. 150 Commerce Drive N. Largo, FL 34640 George Williams President 813/586-3129 George Williams President 8131586-3129 Contractor Pinellas County Wheek:hair Transport Serv i ce, Inc ... 150 Commerce Drive N. Largo FL 34640 George Williams President 8131586-2711 George Williams President 813/586-32811 Contractor P i nellas County VIP Wheelchair Trans Inc. 726 4th Street N. St. Petersburg, FL 3370 1 Cart Holzwart Manager 822-7999 Sandra Gallman Manager 822-7999
Contractor Polk County Heart of Florida Hand i cap Transportatio n Inc. P.O. Box 2942 H ai n es City FL 33845 Barbara Orlsich Vice President/Driver/Secretary 421-2092 Gary Ewers Insura n ce Agent 800/329-1324 Contractor Polk County Coke r' s Ha ndiVan 306 Shady Oak Avenue Lake Wales, FL \MIIie Coker Owner 8 1 31676-3188 \MII i e Coker Owner 813/676-3188 Contractor Pol k County lake Wal es Cab Co. 316 W Sessoms Avenue lake Wales Fl 33853 Joyce llczhyn Owne r 8131676-1089 Joyce llczhyn Owner 813/676-1089 40 Contractor Wakulla County capital Transit I n c. 5709 Deese lane Tallahassee, Fl 32304 Perry Sheets Operations Manager 545-8313 Perry Sheets Operations Manager 545-8313
APPENDIX D Insurance Data, 1988-1992 41
' -0 w _, I r L s i "" .. 'li Bi !i il I CL oo Pl H >: -li d H H u a :n F H i sa!! H !H! H; U ;; u; it H :H :t a !I h !i U!t 11 H t" H ii :; :; H i -.. a p a !ius u n u :u a!!. ii_ u a i 11 11 u a a a R a$ " .... "" .. i ai M ig s - a a ........ "" : .... "" .., ;; N g u .. ;; " ""' "' ....... :0 ....... ..... ................. .......... ...... !::! " N J M "' ... ......... ... .. ... ... = ... -" f1 ..... :!;$ 9'. :; .'! ;: " " R. !! ia i 5 a s: e "t" . ... .. ... w cse = ; = I u coo u -'JJ z 42
" Si. i !! !. a. ii. 5 1. SJ. ii ' .:. !! !i\ i !!a$ s;v -a; ;; fl" :2 .. :;:l:;;:2:; l tl U l :; .... ;; .... ;; /! .. ..... ... ::; -. ,; .ti N znz z "' i; a .. !2 gg l 1 .. j 1 .. .. .. ......... ... ...... ... .. Ir :t ... :1 j - _qi ... ...... . ... . a :; i :r; : ; ;; :; :; :; ih ; i e Ji o -i -" a ; ... ;; ... :; ;;; = -H -pi -n ; n N N NN i ... ... ..... --..... ... ... .. ... ... ... .. .., ... ; il ... a; 1.'1 s:' m i .. .. .. .. .. .. ... -J_ :; i ;:, .j ;; ; "-ill] 5 i Y! '1 11 i I idG f l > xxx_ 22 > 43
TABL E 0-1. (continued) . . l991 lnso.noco Premiutl'l8 t SW C T C 0.-Automo'IN& Aueemolive ......... .... """"""' $01V:C0NN (Cocll$3cW ( Unln$tlt*' Too t<>ooo<> '""""'' (l. illlbitily) """"" ._, $1$,6$7 so .,. .. .. S:U ,701 $4 9,17 2 ...., $10.688 10 10 so 10 10 U,347 $ ((035 .. so ""-007 so 10 10 $ 1 7 630 $68 ,33 7 ,., ... n "" "" "" ....... .. .,.,,., so 10 .. .. $&4 ,7$2 $120.$42 ........ 10 ........ .... ... 1445 ,106 S.SU61 "" $408,001 c.,_ 10 $1 3.27$ 10 so 10 .. sO $3,.528 $ 16.804 c .... -so "! ....... t18,0 .. ""' $6,6)1 -t $39.6 c .... NR HR HR HR HR c.., .. 10 ,,.., .. .. 10 $9,:200 525,499 comw S12,.n& so .. .. 10 $12 4 5() 12$,248 COiu,t-Wn, S uw " "' " "" "" "' "" "" .. .. so 10 10 123,47!) m ... ro O.S,H!f, tti.Ok .. U9,en so 10 .. 10 Dilt.Cii,Levr "' "" "" ... "" """" 10 so 528 .71 .. $'-01 0 $30 7,448 ......... I!:Knbio 10 .. .. .. 10 10 10 fiD;IOt 10 .. 10 $32,210 .. SO Sl2 .7t5 $4$.1)66 fretlll f n "" '" "" "" G4.Jf.lti,Md,T, .. so 171.296 S24t .S.t3S1 .$4!,!.09 Gld,Hon,Loo so $88,41 7 .. 16 3.0 1 7 $4,9,., .,,. $15 246 S11U8EI WI so .. ... $9,920 so 10 so -, $ 10 .61Xi -10 $14,595 .. .. so $14,8$0) $29,494 so 10 10 IM,615 '''" 1);335 123,29& ..., ... Hoi,W.t,WOWI 10 .. 10 .. .. 10 $16,763 1 1&,763 t so 10 .. 10 $31,164 .. !'21,7711 .,_.,. """"" NR NR NR NR so so "' 10 $1,713 10 $1,719 $9,431 "" so .. $SS,99t so .. so $14,61 9 $10,61 0 '""" so .. .. .. .. .. "' "'""" NR NR NR NR HR NR ...... 10 10 $4,263 S2l,1&4 ..,. "! ""'"" """' so 10 S3,0&0 $2Z,.t87 .,, '"" S1,390 S18,t29 ........ ... HR NR ... HaU;JoJ so .. $8,91 6 St&.& so .. '" ""' .... 001 "'"""" ., .. S8,700 $$1,200 $ t,M2 so St3,500 S7i.Qn Otroo.O.c. s.m HR HR NR HR Ptlm "'' "" "" "' '" "" "" Puco so 10 .. so so .. io Plnollas "' "" "'' "' ""' "" "' .. ... NR HR N R '"""" ... Saini. JOM 10 10 $1,967 $31 o&S $ 1 ,660 1 1 001 S49,316 $86,039 S aint l ucit '" "' "" '" '" "' "" "" Sll"ltA Rosol ... NR HR NR HR NR .. ... a$01. HR .. ..,.,., "" '" '" .. '" "" "" "'' ..,_ .. so "" n .sw .,.. ... .. .. 14,373 Vo.'l.lsia NR HR HR HR NR w ...... so $9.199 10 so .,. so $$,3M A.vor.aQO $13 983 $318.&41 $162,965 Sl.212.163 $10S,65S SU,!544 $1,19!1,195 $3 023.338 rJI: (no AOR W\'15 fl:.t Hft: A()R was Slbmi llod but diM iiOffl wM 1\C( t (ll)()ft&d
.... V> TABLE 0-1. (eonlinued) 195q ll'ltu!WICO Ptomllllllt 199'1 CTC c .... ,t, Au!Qmotive ht.lotno6\ S....W:. Noa (COIIifionl (Unil'ltur&d (GGnltilli} (General) ( Liefity) Motmit} ,.,.,..,. "'''"' $ 1 $ ,56$ $1.2,984 '3. 672 SUl9 "' so -1 1 2 ,oe9 so so so "' .. "" so 10 S6,4:l9 $31 ,179 11.320 St.0$7 .. _, $0 10 10 10 ...... 10 -"" 10 10 so ... ..,. .. so .._ ... 10 $5 892 SS07.700 .... c ...... so so $4, 650 $ 1 9 156 $1,316 c-. 10 .. $5,405 .. ""' CiiM 10 so 10 .. 10 10 c., ., 10 J19.,31 )' ""' s
... aTABLE 0 2. Comparisoo of l ns"rance Premi"ms in 1990 and 1991 1$$?t:TC CUIA'fy (GenwfiO ........ A!AomW.-e -SotVico At.a 1990 "" c._ ... 1 c.....,. AIIICI'IuD $<17.7<1$ $3,275 43. 1 $ 1 4 ,498 $19,657 35.G% ... ., $10, Ge& ...,_.,, "' .. -. ., 10 .. $50,807 ........ "" "" "" Bteva:d 10 .. 135.750 $}5,7&0 ...... ....... 10 so !2-"" ....... """"" 10 .. $13 ,276 SIU'76 .... """'"" "' "' 10 10 -c .... "" NR N R Cloy .. 10 -10 .. ,. ... NR 10 NR $12.1'98 Colu,Haln,Svw $0 "'' 10 'Y .. "" .. "" Duv.al "'' so -'" 10 fioC$"1'.bill .. 10 so 10 FitQft( 10 10 10 10 -"" ..... "'' "" GdAli\IM,T)o .. 10 "' 10 GM,Iter\l .. .. "' $66.<11 7 $88,4U 0.0% ""' '" .. ... .. --10 so 10 U4.S96 10 10 -.. 10 10 .. .. 10 -IM:iln RiYer "' $0 .. so -so NR so .. 10 10 10 .... so 10 10 10 """" 10 .. 10 .. "" Mw\IIH NR """" 10 $0 .. .. """' .. .. -S23,154 .. - .. NR NR Nu.., .. .. so .. ........ .. 10 10 .. Omg,Osc ,Stm N R N R NR P411n 8otdl $4$.11 2 "' .. "" Puw NR 10 NR -P11101111s 10 "' $ U ._625 "" P-olO: "" NR NR NR -10 NR -.. NR Sitll JOMl .. .. -" .. .. "" $12.,416 "" SMI'A Ro .. NR NR -.. 10 -... "" ""' "' ..... .. .. -10 .. voe..si .. NR 10 W..Wi o .. $'9,19& S$,1$$ ..... A vefl9111 $112.141 Sl3,003 -87.$% .751 $318,_&41 1 .0% nfl: N o l applietbl e (M AQR was Slltltnolled for N HR: AOft ,.n tlbritted, Clo)t.l km,.11S nol topot'led N.ltOriiciFY {COIS;MniComp, ) ........ : 11.4b11M > P.r'C*" I f . 1'!'0 1 .. 1 1990 .. 1 .. so ... 1 SS)$ 1&4% .. .. .. 10 (; ...... so ....... 10 ... "" ... ,. -. .. .. so "' .. SM8Z S26.1st . 11lMI. .. lp2.68& 10 $0 .. .. ..... ... ... ... S18.C63 .... ... -" NR NR -NR NR .. 11$.299 301.7% 5 1 1.74$ '<. $0 ; -. '' .. -NR 10 -. so "" ' .. "'' ?-. __ "' so -NR so 10 10 !9 .. ...... nla $2.$7 1 ,.,. "" $2e,774 -'" S347.o78 .. 10 .,., ... 10 16,-211!1 so $3WO . '" ""' "" '" -. $3..51 0 S4.8% ... 'PO .. "' so so ..... $63 011 .... . "" ..., '" $ 1 ,05 10 ....... .. .. 7.1l> $6il.e;15 .. "' 10 $0 -so so .. so < ' 1 1 $.200 S$4 .f20 .... 10 10 --10 .. --"-...... .... .. 1 .... .. so -.. .,. so .. -,, NR NR -IIU 92 ....... $1 9 _t.60 122.1e;t "' 10 ..... -.. 122.47 .. .. HR .... $6_916 1 4 1 ,2% $17,956 SI8,U8 2 .7" ...... ...,.. 14t.&% $1&.890 ;, 2Qi.l NR .. 10 "" ... <: so .. t17,321 "" "' -- NR ... $\0,260 NR NR U .9G1 S2, 967 ... $31 0SS $31,08$ ... so "'' 10 "" '"'"' NR 10 NR -" "" o> "" -$2,41$$ S222 41. 0% $4, 118 ...... $ 1 2 7 1 & 10 so 10 .. SU'-4,511 11.7% S968.tJ7 $1 2 1 2, 1&&
u CCI! "' "' 1 1 t 1 I I ; 'fl!l! 0 0 0 __ oo o -!1 r !" !I!! a i a a! a J i 11 i I.!! .. .. .. .. r:i H "' "'"' = fC l -:ltt .,: .. I il I 1 .. 1 I I I t.:.t::;.'"-:111 I I I I I I t:;:l : ei;;oo fi; o _..,oa .. '": -1 o oN 1 sa; G! a; f i j f:i1Z8 !! iJt !;! !!!' :;:; fi :if:::t lii;S -.. ------H "' "' . I I I g I I I I I I I I I I I I I I '* -l 0 .:; 0 I -! II -a i .. ----H "' t I I I I I II I I ,,,,,g, ,,,i,! I I I I I $ii I 0 "': 0 0 0 I. ; .. .. :;;-.. ... - r I' . .. .. :J . .. .. . -... ... ... !;l .. -----1 .. 1 It tillq_ ih iHI 47
' ' I l ' !!, ' ' I ' ' ' ' 0 --' ' ; te I 14' . ' !l of' ' ' ' "' ' T !!i a a U u U .! a !!i i aa n U U H U 3 s U 3 i i !! a a f !il ; a -R:i t;!! :. a 3 s ... -;; .. I i 'fi a :;:. i lf fi-$1 '!! tt . ... ... ... . ., -;; 1 i .. !: .. ' ' g f ' ' ' I I ' ' ' ' ' ' ' ' ' ' "' - -!I - g a ta 'i. .a t a i ;a a a l " l l ; a i s G ;; g. i h ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 0 .; 0 l ii t g"" d til ... :;; ... = ... :; -" t -' 8 O!i ! o> g .n n .. g 0 ... !.. -.. ... ... ... .. ... ... ... s I t i ' ' ' ' ' ' , ' ' ' ' ' ' ' ' ' ' ' ' ' ' g .. 6 -I! 1 a a g .:; :; ... .. r " $ L ,; II -" :: s C i i": t !ii I c i 48
''I .. ' ' > ' > $ F _;;, , f: # It I ,. ,. ,. .... -I 0 g I J"{":' l I I ; !":1'o.; "": .q, f I I I "': I I I I I Si "' lri o < "',, :O,OIJ ,it l'l .,, "' ;; . "' ,.It a o-il s s s i 5\"' ss 1 1 "'-"'1- "' i"' 1!-s:"' . . ..... z . s: ....... z z z z :ii . z ::;. ' H t .. t i .. ,. ,. I I "'! o : I' I I ... I Sj 0 .i ' i ' ' ' ' ., :l 0 cS N .... "' N . i! l i I ... ... _.., ..... --... --... ..,. w ... ... ... ... ... ..,. ..,...,. -' I h =--ft ... "' ... .. ... ... N ... tJ u .,. -... ... ,.. ... .. .. .. ... ... ..... -. H "' .., I I I ' ' I I ' I ' ' ' ' ' "' ' ' I ' ' ' ' ' -0 :;; .. ' .. -... i ; ., ., ..,. .. ! H "' I ' I I I ' ' ' ' ' ' ' 11 g ll ' ' I ' ' ' ' ' ' i (:iQ " li! ., ., = .N .. ..,. ., ... .. ..,. .. .. .. I g "i .. ; .. ; i p j a i r 1 lji. u t 49
APPENDIX E Insurance Providers as Reported by CTCs and Contractors and Addresses of Insurance Providers 50
E-1. Insurance Providers . ., c ,, ... . > ' Pf9 v ide r ' Workm an's Excesa/ ProP!rty fU!omotlvo ' . Comp ... Umbn!Ha American Emp i re Surplus Lines ./ Arthur J. Gallagher & Co.,Orlando ./ Auto Owners Insu r ance Co. ./ ./ Bakers I nsurance ./ ./ ./ ./ Bankers ./ ./ Bifuminous Casua l ty Corp ./ Brown & B r own (Agen l ) ./ ./ ./ Capital Assuranoe Company Inc. ./ Chubbs Insurance Co. ./ Cign a ./ ./ Cinc i nnati I ns u rance ./ ./ Continental I nsurance Co. ./ ./ ./ Credit Genera l I nsurance Co. ./ Cred i t I nsurance, Lake Wa l es ./ Empire Fire & Marine ./ Employers SeW Insurers Fund F E I SCO ./ Firema n s Fund ./ F l orida Home Bu i lders SeH Insurance Fund ./ F l orida L eague o f C i ties ./ Florida Wor1
E 1 (co ntinu e d ) ':,? ; of Coverage .. ' insurance Provider ' AutomoliYa' Workman's EXceso/ ' Pro,perty .. Comp Umbrella I nsurance Co. of N orth America ./ Liberty Mutua l Insurance Group, Boston ,/ Marke l American Insurance Co. ./ N a tional Indemnity Co o f the South ./ Natio n wide ,/ Progressive American Insurance ./ ./ Sarasota International Risk & I n surance ./ Scottsda l e Insu r ance Co. ./ St. Paul Fi r e & Marine I nsuran c e ./ ,/ ,/ State Fann ,/ ,/ Transportation Casualty tnsuranoe ./ ./ T he T ravele(s Co ,/ ./ ./ USF&G ,/ Westfie l d lnsurence eo. ,/ ./ 52
E-2. Addresses of Insurance Providers Arthur J. Gallagher & Company 3535 Lawton Road Sutte 25 Orlando, FL 32803-3738 Auto Owners Ins ura nce Company La nsi ng, Ml 48909 Brown & Brown (Agent) 220 South Ridgewood Ave. Daytona Beach, FL 32115 Capital Assurance Company, Inc. P. 0. Box 025276 Miami, F L 33102-5276 Chubbs Insuran ce I nc. Headquarters 15 Mountainview Road Warren, NJ 07059 CIGNA 1601 Chestnut Ave. Philadelphia PA 19192 Cincinnati Ins urance P.O. Box 145496 Cincinnati, OH 45214 Continental Insurance Company 333 Glen Street Glens Falls NY 1280 1 Credit I nsurance 139 West Stuart Ave. Lake Wales, FL 33853 Employer's Self I nsura nce Fund P.O. Drawer 988 Lakeland FL 33802 Florida Home Builders Self Insurance Fund P.O. Box 166007 Altamonte, FL 32716 Florida Wor1
Nationa l I nd e mnity Company of the South 302 Harney S treet Omaha NE 6813 1-3580 Progressive American Insu rance 6300 Wil son M i ll s Road P O Box 5 07 0 C leveland, OH 44101 Sarasota International Risk & Insurance P O Box 1598 Sarasota, Fl 34230 St. Paul Fire & Marine Ins urance Co. 1060 Maitland Cen te r Com merce Blvd M aitla nd, FL 32751-72 72 S t a te Farm Insurance 2702 Ireland Grove Rd Bloomington, IL 61709 Transportation Casualty Insurance Comp any 1600 West Commercial Fl L auderdale Fl 33309 USF&G Fishe r Brown P.O. Box 711 Pe nsaco l a FL 32593 The Travele(s Company One Tower Sq u are Hartford CT 06183 Westfield Insurance Company P O Box 5001 W estfield Center, OH 44251-5001 54
APPENDIX F Sample Request for Conceptual Proposal 55
SAMPLE REQUEST FOR CONCEPTUAL PROPOSAL REQUEST FOR CONCEPTUAL PROPOSALS The _____________________ ( organizationlcommitteename )isf orming a group insurance program to provide a utomobile liab i lity (and related coverage) to transportation disadvantaged tran sportation coordinators and contractors. Your firm is one of severa l that t h e ____________________ (organization/committee name) is cons i dering to place the group Insurance program and handle the account. The------------(organiza t ion/ committee nam e ) would like your firm to prepare a proposa l describing yo u r qua l i ficatio n s to handle the group i n surance program. Ten (10) copies of your proposal must be returned to. ________________ (organ i zation/ committee name or contact ) by ------a.m./p.m on ----------19 to t h e address t hat follows: We plan to i nterv i ew prospective b rokers to discuss thei r proposals. T h e interviews are t e nt atively s ched uled for 19 Interviews will be conducted by th e _________________ (organizat i on/comm ittee name). Following t he interviews, the broker(s) to market the program w ith insur ers wi ll be sel ected. At that t i me . detailed bid specifications will be released to the chosen broker(s) At this time, you are !!2l authorized to approac h potentia l insurers formally on the-----------------(organizet i onlcommittee name)'s behalf. Do ing so may be gro un ds for disqualifying your firm from further considerat ion. 56
The following i s a planned schedule of important dates for the process : Activity Conceptu al proposal s due Interviews with se lected finns Bid specific ations releas ed to specified broker(s) Insurance quotations ret urned Insurance prog ram becomes effective Target Completion Date Any Inquiries regarding this request for qualifiCations should be di r ected to the------------------(organization/committee name or contact) at phone number 1.....--Lmention lng the request for conceptua l for proposals to the telephone receptionist. Inquiries concerning the proposal should be mad e no late r tha n ------a m./p m on -----------19 to allow adequat e tim e for response 57
Outline for Proposals I. BACKGROUND INFORMATION A. PROGRAM STRUCllJRE The selected group insurance program should have a primary automobile l iabil ity limit of $500,000 or $1.000,000 (recommended). Several transportation disadvantaged transporta tion coord i nators and contractors may be interested i n purchasing h ig he r l imits on an in d ividual basis or as part of a smaller group. The broker may be asked to make these placements. A majority of the transportation disadvantaged tran sportation coordinators and contractors are currently purchasing comprehensive and collis i on coverage. Several transportation disadvantaged transportation coordinators and contractors may atso wish to purchase uninsured motorists coverage and medical payments coverage Th e i nsura nce program should also provide these coverages to those transportation disadvantaged transportat ion coordi nators and contractors des iri ng the m. Although (o rganization/committee name)'s main focus is automobile l iability insurance coverage, individ ua l transit transportation disadvantaged transportat ion coordinators and contractors may need general lability, property, and worker's compensation coverage. The selected broker may be asked to place these coverages for indiv i dua l entit i es that req uire assistance i n t his area. We prefer the group purchase program to be rated on a loss sensitive basis such as a loss/profit sharing arrangement or on a retrospective plan. So that you will know more about transportation disadvantaged transportat io n coordinators and contractors exposures, the (organization/committee] name has i ncluded some u nderwriti ng informa tion in Exhibit I. It is understood that the data in Exhibit I is minimal. Virtually complete underw rit i ng data was co\leaed in and will be updated in the bid specifications. B. SERVICES DES I RED FROM BROKER Services [organization/committee name] desires from t he selected broker i nclude: 1. Assisting in the preparation of materials, specifications, and underwriting data required by insurers. 2. Placing i nsura nce coverage. 58
3. Verifying accuracy and adequacy of all policies, endorsements. and invoices prior to delivery 4. Submitting a marketing report. 5. Servicing the i nsurance policies placed (i.e., issuing certificates of i nsurance, chec kin g policy wording and accuracy, and answering coverage quest ions ) 6. Answering questions regarding use of insurance c lau ses in contracts 7 Attending meetings with [organization/committee name)'s Execut ive Director, Board and others to discuss the group Insurance program 8. Assisting with loss adjustment problems. 9. Submitting an annual report describing act i v i ties performed on [organization/committee name)'s behalf, i ncluding future plans and goals for reduc ing costs. 10. Assisting with marketing the program to [organization/committee name)'s members 11. At [organization/committee name)'s option, providi n g other pertinent services for which your firm has a special background. II. INFOR MA TION REQUIRED FROM BROKER This section of the request for broker's qualifications and conceptual proposals contains questions that will allow [organization/committee name] to learn more about your firm its capabilities and how it will respo n d t o [organization/committee name)'s needs. The quality of written presentations is important. Your proposals should be well organized, c lear, and concise. A. QUALIFICATIONS/SERVICES 1 P r ovide a brief history and description of your firm. The description should include the s ize (number of employees and/or revenues) and areas of specialization. Prov ide t his same i nformation f o r the office that would handle [organization/committee name)'s account. 2. We prefer that the successful broker have a contact office or person in Florida If you do not currently have an office i n Florida, describe how this preference might be fulfilled. 59
3 If available, include a copy of your latest annual report or other comparable document. 4. Provide the name and experience of each i ndividua l that would be assigned to work on [organizatio n/com m ittee name)'s account. This should i nclude account executives, marketing personnel, and others who would actively work on (organization/committee name )'s account. Be sure to Identify the Indiv id ua l within your firm who will have overall responsibility for (organizat io n/committee name)'s account and the office i n which each account member is located 5. Provide the names and telephone numbers of at least three refere nces The (organizat ion/committee name) p refers as references other state transit association programs or transit systems loca ted in Florida 6. Describe your firm's ability to assist the transportation disadvantaged transportation coordinators and contractors with difficult claims. 7. Describe any special expertise your firm has in providing insurance to transit associations or systems. 8. Describe what you will do to keep abreast of the loss exposures of transportation disadvantaged tra nsportatio n coordinators and contractors. 9. Describe other services (e.g., safety and loss control, claims handl i ng, general administration) that your firm can offer to transportation disadvantaged t ransportation coordinator and contractors. B. COMPENSATION 1. Describe your approach to determining the compensation you require t o provide the services requested. 2 State whether you prefer to be compensated on the basis of fees or commissions. If you plan on being paid a fee how will the amount of fee be determined? If you plan to be on a commission what percentage do you propose? 3. State the amount of income you will require to provide the services requested. If you cannot p rovide a firm figure at t h is time, please provide as narrow a range as possible and ind icate when the (o rga nization/committee name) can expect a firm figure 4. Describe any special services, and costs, not included in the above compe nsation. 60
C. INSURANCE COMPANIES Please list t he i nsurers (showing the complete name of each, i n order of preference) that you would app roach for providing coverage to the (organization/committee name]'s p rogra m For ea c h insure r be sure to ide nt ify any managing general agent or surplus l i nes b rok e r that you would use. Also list the c u rrent Best's rati n g and i ndica t e whether the in surer is admitted in the [org a nization/comm i ttee name)'s state. If you plan to use the Lon d on market p l ease i dentify London brokers a nd specific underwriters (Lloyd's synd i cates or o ther carriers) that will be used At this time yo u are !lQ! authorized to contact any i nsurance company formally on the (organizatio n /committee name]'s behalf. Failure to comply with this request cou l d disqualify your fi rm. Please use Exhi b it 2 to provide the req u es ted i nfonn a t ion. Attach an add iti onal pag e if you wish to list add iti onal carriers. D CONCEPTUAL APPROAC H Please describe the group in s u rance program(s) that you thi nk may be availab l e to t ransportation disadvantaged transp ortatio n coordinators and con tractors I n desc rib i ng approaches you believe the (orga niza tion /committee name ] should explore p l ease describe any program feature s that y ou believe would be particular l y attra ctive. These features coul d incl ude u se of pa rt icular insurers. use of a particula r adjust i ng finn. special rating plans particular services available from your finn, or the Insurers you would use. E MARK ET ING PROCESS The first attachment of this req u est for conceptual proposals conta ins the (organization/committee name]'s planne d schedule o f activities. Working within that schedu l e (or wit h changes you feel n ecessa ry), prese nt the plan of action you w i ll follow to mar ket the [o rga niz a tio n/ committee name]'s program. Your plan should include a description o f the u nderwrit i n g data you will require 61
ENDNOTES 1 Nonh Dakota State Highway Department, Transit Insurance OptiOIIS and Alternatives for North Dakota, (Fatgo, N. D.: Nonh Dakota State University 198 8 ) p. IS. 2. Ibid p 4 2 3 Diane Gay Wrenn, "Insurance: Protectin g YoUI'SCif in a Hard Market,"' Community T r ansportation Reporter, Vol. 8 No. 9, (Washington, D C.: Community Transportation n Associ at ion of Americ a, 1 990), p. 8. 4 Bill Goodwin, The S t ate of the Insurance Ind ustry: Premiwns Going Up in 1992 But Not for Everyo n e, The Bus OperaJor, (Nashville Tenn.: Tom Jackson and Associates, 1992) p. 8. 5. R ura l America, A Directory of Rural and Specialiud Transit Operators, Volume I: Eastern U. S. Sysrems, (Wash i ngton, 0. C.: Office o f Grants Manag e ment, Urban Mass Transportation Administration 1986) p. vii. 6 Federal Trans i t Administration (FTA), 1990 Section /5 Reports, ( Washington D C ., FTA) p. 64. 7. Ellis, op cit> p 79 8 Thomas l. Phillips. "Risk Management: The Basics," Community Tran.sportaJio n Expo 91, (Washington, D C.: Community Transport a tion Association of America, 1991) 62
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text:
This is a blog about one woman's quest to manage Type 2 Diabetes while maintaining her health and humor.
Thursday, January 8, 2009
The Shirt That Was Not Just A Shirt
I pulled the chocolate-themed one our of the closet this morning, and remarked to Mr. Handsome-and-Handy, "Thanks again for the shirts. You know, they're not just shirts...."
He looked puzzled. "They're not?"
"No...these are the first shirts from a 'normal shop.'" (Not having read The Amazing Adventures of Dietgirl, he didn't quite catch the reference. Oooo, I've plugged it yet again...this is getting ridiculous!)
"So you're not Abbie anymore?"
My turn to look puzzled. As far as I knew, I had never been Abbie, one of my best friends since jr. high school. Although there have been times when I would have liked to have been Abbie, certainly.
"You know, Abbie-normal?"
Ah! Of course. Young Frankenstein reference. I always love those!
"Well, they're the first things I've gotten that are actually a normal size, from a nice shop that slender people like my mother buy things from." (That sounds kind of funny, doesn't it? But its appeal is broad...people who have actually been to Paris, like Abbie, have bought things there, too. I think even my teenage niece would love this store.)
"Oooh!" (Behold the lightbulb!)
"Yep, a little non-scale victory of sorts."
I'd tell you what he told me next, but I don't want to turn this perfectly respectable post into a glurge-fest....Suffice it to say it was sweet and (I'm happy to say) typical of him and would induce gagging in the non-sentimental.
So you want to see this shirt-that-is-not-just-a-shirt? The photo really does not do it justice, but you get the idea.
7 comments:
- SeaBreeze said...
COngrats! That's fantastic. I love that it is a non-scale milestone and something that you can really appreciate. Your hubby sounds very supportive indeed.
Did you catch your reference to your mothers size and clothing choices? I did. Beware comments she makes that will likely sound more critical than she intends as you seem to value her opinion. I could be way off base here, but I know that's how it is with me.
- January 8, 2009 at 1:29 PM
- MizFit said...
love that you posted a pic as I didnt see that coming as I read and imagine the shirt.
and I love that you share my love for all things DG as well ;)
- January 8, 2009 at 3:14 PM
- Shauna said...
WOOHOO! Three cheers for Normal Shirts! :)
- January 9, 2009 at 1:21 AM
- Juice said...
The shirt looks GREAT. Congrats on the NSV. :)
- January 9, 2009 at 8:01 AM
- Fitness Surfer said...
Oh, very, very nice. Now you've got me re-reading what store you bought that from. You look great by the way. Maybe it's the extra confidence of a new (non blogger) shirt, and all the nice things Mr. Handsome-and-Handy said to go with it.
I've been trying to find something like that. The ones I find are close but always have some strange word on them with the art designs. That's prefect, and oh-so-flattering.
- January 9, 2009 at 8:24 AM
Yippee! Yes, that is quite an accomplishment!
I hated those plus size stores - mostly nautical themes - nothing that was fashionable at all!
- January 11, 2009 at 4:15 PM
- debby said...
Ooh La La! Isn't that something? And do you notice how much younger you look than in your heading picture? Its amazing how taking some pounds off the face really does make you look younger.
And, boy, do I get going in 'normal' stores. Most of the time it does not come naturally to me at all.
- January 13, 2009 at 6:49 AM

subset: commoncrawl


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When I was a kid (in NYC) the type of Chinese restaurants my family went to always gave you one from Column A, one from Column B, headaches from excessive MSG, and bowls of crunchy noodles that we dipped in sweet, slimy duck sauce.
I have since graduated to more exciting and less embarassing culinary inclinations, but last night during a delicious dinner at Su Hong (xiao long bao, chicken and chestnut hot pot, fish filet in wine sauce) my partner admitted that she still craved the childhood pleasure of those noodles dipped in duck sauce. Personally, I think it's kind of gross, but I don't even like chips and salsa.
Anyway, is there someplace that serves those crunchy noodles, preferably the thick, slightly greasy kind and not the thin ones that come out of a can, and (shudder) duck sauce, that also has decent food? I would like to take my sweetie someplace where she can indulge her nostalgic desire, but where I can still have a meal that doesn't consist of overcooked celery in MSG sauce. Peninsula preferred, if possible.


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Institutional Video
To watch from the most spectacular window in the city the blend of the river that brought the immigrants who would give birth to tango, with the most modern buildings of Argentina, is to acknowledge that tango is alive.
Planes and Prices
Madero Tango ha desarrollado una exclusiva selección de platos típicos argentinos del más alto nivel internacional en la que se incluyen las mejores carnes del país y cocina de autor.
Corporative Dinner Show
Madero tango offers a service of Corporate Dinner Show with special characteristics to please people of all nationalities.
It know our living rooms
This Hall combines the charm of the old docks of Buenos Aires and the modern touch of a recycled work to match the most modern neighborhood in the city.
Dock One Hall
This alternative suits medium size events perfectly. Double circulation in a Hall whose left side is endowed with the best view of Puerto Madero due to its transversal position to the docks.
Puerto Madero Hall
A stage that can be compared to those in the US or in Europe close to a visually arresting window complete an option that dazzles whoever comes by it.
Madero Tango Hall
This option includes Dock One and Puerto Madero Halls embodying their magnificence and a capacity required only for large events.


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Council approves zoning change for aquarium expansion
May 30, 2017 12:02PM ● Published by Kelly Cannon
An aerial map showing the planned expansion of the Living Planet Aquarium. The city council approved rezoning the area to a commercial special district. (Draper City)
The Draper City Council approved both a zoning change and a change to a text amendment related to the expansion of the Living Planet Aquarium. The four-to-one vote took place during the April 18 council meeting with Councilwoman Marsha Vawdrey voting against.
Draper City Planner Dennis Workman explained to the council the Living Planet Aquarium was requesting 9.09 acres to rezone from CBP, a business/manufacturing park, to CSD-LPA, a commercial special district.
"This narrows the number of uses that can go in there quite a bit," Workman said. "The CBP allows a lot more uses than the CSD-LPA."
Workman also said the aquarium was requesting a change to a text amendment.
"This text amendment, we're looking at a significant change that the applicant has made per his request," Workman said. "This is the basic summary of the text amendment. It increases the maximum building/structure height from 100 feet to 175 feet. It makes allowances for a future structure to be located on the south parcel that will serve as a pavilion. It clarifies that the Rocky Mountain Power corridor is exempt from the requirement to install trees."
During the April 11 city council meeting, Living Planet Aquarium included a change to the rules about signage in their requested text amendment change. However, those changes to signage were removed for the April 18 meeting due to concern expressed from the city council.
"The signage will be what it always was as it was adopted many years ago. That's the signage they will be allowed unless they come back and want to change it somehow. But right now, there is no request for additional signage," Workman said. "Power signs are allowed. There is one already there as we all know. The signs can be 40 feet tall and 200 square feet per sign face. That's what they'll be allowed from here on out unless they decide to change it."
Councilman William Rappleye thanked Brent Anderson with the Living Planet Aquarium and his team for working through the parts of the text amendment changes that the council was concerned about.
"I understand he went back after talking with us at the last meeting and did some reconsideration of the plan and realized that what they really need to do is get the rest of the plan in place before they could really think about signage changes," Rappleye said. "I appreciate that understanding and being so quick on that."
Councilwoman Michele Weeks also thanked Workman for working hard so the council could vote on the changes at the April 18 meeting.
During the Feb. 21 Draper City Council meeting, the council unanimously voted to waive all zoning fees associated with the expansion of the Living Planet Aquarium.
"I do believe that we're a strong partner with the aquarium. I believe it does bring a lot of recognition to Draper City. I think it's hard to prove out how many dollars have come to the community after the fact. But they do have a great map to show where the visitors come from and it's quite a wide range across the United States," Rappleye said during the Feb. 21 meeting. "I think that does help recruit businesses into our city. They've proven they're a good corporate neighbor."