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IFTA License Renewals for 2021

IFTA License Renewals for 2021 – What You Need to Know

By DHSMV Bureau of Commercial Vehicles and Driver Services

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IFTA renewal notices for 2021 were recently mailed by the Bureau of Commercial Vehicles and Driver Services (CVDS). In Florida, renewal of International Fuel Tax Agreement (IFTA) credentials simply requires submission of a Decal Reorder form. A personalized copy of this form is included in the renewal notice package. A blank copy is also available on the Florida Department of Highway Safety and Motor Vehicles website (www. FLHSMV.gov). Search for Form 85010.

Carriers may reorder one set of decals for every qualified vehicle in their IRP fleet. Carriers which do not have a Florida IRP account must submit proof of their qualified vehicles with their decal reorder. Carriers which have a Florida IRP account and are also registered E-File users may order online instead.

Before placing your order, be sure all your quarterly tax returns are up to date and there are no outstanding taxes due. Carriers whose tax filings are current through the third quarter of 2020 will be considered eligible to renew. However, carriers with Florida IRP accounts are also required to have proof of current vehicle insurance on file. Therefore, to be in full compliance and eligible for IFTA renewal, any carrier whose vehicle insurance policy renews after they have already renewed their Florida IRP fleet needs to ensure that CVDS has a copy of the current coverage on file. Without this proof of active coverage, Florida IRP accountholders will not be eligible to renew IFTA. If this applies to you, enclose a copy of your current certificate of insurance or other proof of coverage with your 2021 decal reorder. Remember, in addition to the minimum liability coverage that applies to your type of operation, you must also show that you have current personal injury protection (PIP) coverage.

CVDS will start issuin g new licenses and decals in November to those carriers which have satisfied all the requirements and were prompt about submitting their renewal requests. The new decals can be affixed to vehicles beginning December 1. However, the deadline for submitting renewal requests has always been December 31. Carriers which do not timely comply with requirements or wait after December 31 to submit their reorder are considered late. Although it is permissible to operate with last year’s license and decals through February 28 of 2021, the purpose of this two-month grace period is for jurisdictions to have ample time to issue renewed licenses and decals. It is not a grace period for carriers to renew.

Avoid last minute issues and get your renewal submitted before the holidays!

Hurricane Isaias and COVID-19: Maintaining Operations through a Compound Disaster

By Scott Fouts

Take-away: COVID-19 has significantly impacted every aspect of our personal and professional lives. Now, throw a hurricane into the mix and you’ve got a compound disaster. It’s possible to prepare for such an event with these three best practices. Whatever your business’ annual disaster preparedness plans are during hurricane season, they’ve changed for 2020. As the COVID-19 pandemic continues to impact and disrupt businesses—along with a very active hurricane season, it has become increasingly important for business owners and operators, especially those in trucking and logistics, to anticipate the potential of a compound disaster. A compound disaster refers to two or more disaster events creating additional and increasingly complex response and recovery challenges as each disaster amplifies the effect of the other. Unfortunately, natural disasters and human-caused crises are unlikely to decrease in frequency during a pandemic.

Compound Disaster Business Considerations in Florida

In the midst of this “new normal” now is the time to assess and adjust your business preparedness plan, anticipating new ways of responding to compound events. Supply chain disruption and remote, decentralized workforces and financial constraints are just a few variables important to consider when recalibrating preparedness planning. Consider the following issues that are currently complicating compound disaster scenarios in Florida.

• Overwhelmed disaster management support.

Familiar state, federal and municipal government responses may be limited due to lack of availability or resources during a compound disaster. Government agencies, emergency service providers and healthcare systems already struggling to keep up with the global pandemic will be further strained by storms, and therefore, response times could be unusually high.

Natural disaster response efforts require a large mobilization and coordination of teams of people and volunteers, which will include new and difficult challenges in a compound disaster response environment.

An added challenge will be protecting first responders and those affected by the disaster from COVID-19.

• Supply chain and shelter challenges.

It is critical to consider how a compound disaster will affect the supply chain of the businesses you contract with, and therefore, your business as well. When considering how to shelter drivers on the road during a large-scale natural disaster, it’s possible there could come a point in time when temporary shelters are the only alternative. Options that may have been available previously may no longer be viable due to social distancing requirements and COVID-19 risk. Review and amend your evacuation and continuity plans accordingly, and consider any possible options for establishing new meeting places and overnight shelters along driver routes.

Technology-related challenges.

Many carriers already have a decentralized workforce, which has both pros and cons in the face of a natural disaster.

While the likelihood of your entire remote staff being impacted by a single, localized event may be low, utility outages could disconnect support-critical staff for an extended period of time should their homes or travel areas temporarily lose power or connectivity. Consider your options in this scenario. Is there a way to make these employees and their technology more resilient in the face of a natural disaster? Another important aspect to consider is the recent rise in cyber incidents. A decentralized staff has made many business networks more vulnerable. Developing a business continuity plan that takes into account both a hurricane and COVID-19 constraints and challenges will prepare your truckers for the unexpected today. Scott Fouts is Vice President of Hub International’s Risk Services Division. Hub International is an FTA member.

2020 Fleet Safety Awards Fleet Safety Awards are not easy to come by: to receive one, a company must rely on the driving records/accident history of all of its drivers. Receiving such an award requires a singular goal and commitment to safety that reverberates throughout all departments of a company. Congratulations to all winners of 2020 Fleet Safety Awards this year!

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Understanding PIP

By Monte Stevens

Simpson spoke of reviving talks to replace the state’s no-fault auto insurance system, which requires motorists to carry $10,000 in personal-injury protection coverage to help pay medical bills after accidents, with a requirement for bodily-injury coverage. The issue has stalled the past few years as the House and Senate fought over whether to restrict “bad faith” litigation as part of the proposal. “I think we could have some major reforms there and have some guardrails as it relates to bad faith,” Simpson said. – News Service of Florida, October 23, 2020 When asked about his 2021 legislative priorities at a recent event sponsored by the Florida Chamber of Commerce, Florida Senate President-Designate Wilton Simpson listed repealing the state’s current motor vehicle insurance law among other issues such as limiting water pollution and reforming the state’s pension system. While legislative debates about Florida’s no-fault insurance law are nothing new to Capitol watchers, rarely has a presiding officer weighed in before the session starts. As a result, consumers and interest groups will want to pay close attention as session approaches because radical changes to the way Florida motorists are insured may be on the horizon.

A Brief History of Florida’s No-Fault Law.

In 1971, Florida became one of the first states in the nation to adopt a “No-Fault” system of financial responsibility for motorists. The idea behind this system is laudable; in order to lower costs, drivers will be guaranteed certain medical and death benefits in exchange

for limiting their right to sue for certain non-economic benefits. This provides a minimum level of coverage regardless of who is at fault for an accident while simultaneously reducing litigation and the costs associated with it. Florida is one of 12 states with some form of no-fault system. Current law requires all motorists to carry a minimum of $10,000 of Personal Injury Protection (PIP) coverage and $10,000 of Physical Damage coverage. This guarantees that, in the event of an accident involving an uninsured motorist, there will be at least $10,000 for medical treatment resulting from that accident. This minimum coverage requirement has not been increased since the 1970’s and there is increasing recognition it is not sufficient to treat accident victims in need of care. Over the last 40 years, the Legislature has enacted several changes to the no-fault law that have been intended to lower costs and increase efficiency. While many of these changes have resulted in some modest savings for consumers, the outcome of these changes has been at best a mixed bag.

The Case for Repealing PIP Without question, $10,000 in insurance coverage doesn’t go very far when motorists are injured in an accident. Despite the rising cost of health care, the compulsory insurance benefit in Florida has not changed in more than 40 years. Advocates of repealing the no-fault law are quick to point this out. Further, it is difficult to argue that current law is doing anything to reduce litigation associated with auto accidents. The proliferation of billboards and television advertisements for law firms tells you all you need to know about the amount of litigation happening in Florida. Those advocating for the repeal of Florida’s no-fault law typically advocate to replace it with a new system that mandates all motorists purchase bodily injury (BI) coverage with limits higher than the current $10,000 benefit. Legislation filed over the past several years would require minimum coverage of

“Current law requires all motorists to carry a minimum of $10,000 of Personal

Injury Protection (PIP) coverage and $10,000 of Physical

Damage coverage. ”

$25,000 for injuries to a single person and $50,000 for injuries to multiple people. This coverage would increase the available benefits for injured parties and provide some protection for an individual’s personal assets, whereas PIP only provides medical and death benefits.

The Case against Repeal More than 90% of Florida drivers purchase insurance coverage that exceeds the mandatory coverage required by law, so for most drivers going from a PIP benefit to a BI benefit won’t be a big deal. However, there may be as many as one million drivers who buy only the minimum compulsory coverage. These individuals are virtually certain to see premium increases which could be significant depending on where they live. Forcing someone to purchase 2.5 more coverage than they did previously may not be feasible to Florida residents who are living paycheck to paycheck. Legislators will also need to consider Florida’s litigation environment when deciding how best to protect the roadways. Insurers are rightfully concerned that repealing PIP and replacing it with a mandatory BI benefit will result in far more lawsuits for far greater amounts. Business interests and insurers will push for significant tort reform to help protect against this expected increase in litigation. In the past, insurers have advocated for reforms to the state’s bad faith law, and all indications are that will be on the table again in 2021. The fate of Florida’s auto insurance model is certainly up in the air heading into the 2021 session. While replacing a system that has been in place for almost 5 decades will not be simple, legislative leaders appear to be supportive of a repeal of the no-fault law. It will be important for those that occupy Florida roadways to pay close attention and engage with lawmakers as they grapple with this complicated issue. Monte Stevens is a Partner at The Southern Group Editor’s note: While PIP/BI does not directly impact CMV insurance requirements, trucking companies are affected by auto insurance requirements— how auto drivers are insured and how claims would be handled in the event of an accident.

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