FROM:Shannonm.Anderson,Stateriskmanager

MEMORANDUM

TO:AgencyMotorVehicleCoordinators

PleasedistributetoeveryonewhodrivesonStatebusiness

FROM:ShannonM.Anderson,StateRiskManager

CC:Gerry Oligmueller,ActingAdministrativeServicesDirector

Steve Sulek,ASTransportationServicesBureauAdministrator

RE:StateofNebraskaMotorVehiclePolicy-FiscalYear2014-2015

DATE:October 3, 2014

I. STATEOFNEBRASKA-MOTORVEHICLEINSURANCE

A. AUTO INFORMATION CARDS: in order to expedite the issuance of the auto information cards, agencies are asked to download the card from the Office of Risk Management website and to print copies needed for your fleet of vehicles. Please keep a copy with each of your vehicles. The Office of Risk Management will not be sending you information cards.

B. POLICYINFORMATION

InsuranceCompany: PrincetonExcessSurplusLinesInsuranceCompanyand

Illinois UnionInsuranceCompany

PolicyNumber:64-A3-EX-0000006-10 and

XPE G19851667 004

PolicyTerm:July1,2014toJune30,2015

NamedInsured:TheStateofNebraska(includingallAuthorities,Boards,Commissions, Departments,Divisions,andanyotheractivitiesunderthesupervisionorcontrol oftheinsuredexceptfortheUniversitySystem)

ClaimsAdministrator:NRMA

CenterStoneBuilding

100North12thStreet,Suite200

POBox85210

Lincoln,NE68501-5210

Phone:(800)642-6671or(402)742-9220

Fax(402)742-9220

StateContact:ShannonM.Anderson,StateRiskManager AdministrativeServicesRiskManagementDivision Phone:(402)471-4436Fax(402)471-2800

Email:

B. COVERAGEUNDERTHISPOLICY

1. AllmotorvehiclesusedonStatebusiness.IfaStateemployeeuseshisorherownpersonalvehicle on Statebusinessandanaccidentoccurs,theemployee’spersonalinsuranceisprimarycoverageand theState'spolicyisexcess.

2. AlldriverswhousecoveredvehicleswithpermissionandonStatebusiness.Thismayinclude contractorswhoareauthorizedtousestatevehicles.RiskManagementencouragesagencies,through theircontracts,torequirecontractorstoprovidetheirowntransportationortoindemnifytheState whenusingstatevehicles.IfyouneedassistancewithrelatedcontractprovisionspleasecontactRisk Management.

3. Allvehiclesownedby theStatearecoveredtothemaximumof$5,000,000peroccurrenceforliability(bodilyinjuryandpropertydamagetopersonalorrealproperty)causedby aStatevehicle.While coverageisautomaticforvehiclesaddedordeletedduringthepolicyperiod,youmay want to informRisk Managementwhenyouaddorsurplusavehicleso that we may confirm coverage in the event of an accident.

4. Thereisno medicalpaymentcoverageforanyinjuredpartyinacoveredvehicle.

a.Stateofficialsandemployeeswhoareinjuredmayqualifyforcoverageoftheirmedical expensesunderthestate’sworkers’compensationprogram.

b. Injurytoanypassengerofthestate’svehicle,causedby anuninsuredorunderinsureddriver, maybecoveredundertheuninsured/underinsuredmotoristcoverageintheautopolicy.This coverageislimitedtoamaximumof$25,000perpersonand$50,000peraccidentforall damages(propertyandbodilyinjury)resultingfromtheaccident.

5. Physicaldamagecoverageforvehiclesownedbyand/orleasedfromtheTransportationServices Bureau(TSB)witha$500deductibleperoccurrence.The$500deductiblemustbepaidby the agencythatwasleasingorrentingthevehiclefromTSBatthetimethedamageoccurred.

6. PhysicaldamagecoverageforanyotherState-ownedorleasedvehicleattherequestoftheowning agencyandatagencycost,witha$500deductibleperoccurrence.Physicaldamagecoveragemust havebeenelectedandpaidby theagencypriortotheaccident.

7. PhysicaldamagecoverageforprivaterentalvehiclesintheUnitedStates,itspossessionsand territories,PuertoRicoandCanada,whilebeingusedforStatebusiness.

8. UninsuredandUnderinsuredMotoristCoverageat$25,000perpersonandwitha$50,000limitper occurrence.

II. INSTRUCTIONSFORREPORTINGMOTORVEHICLEACCIDENTS

ReportallaccidentstoNRMAimmediatelyby(1)callingPeteEidenat402-742-9220or800-642-

6671(2)e-mailingNRMAator,or(3)faxingthepaperformto NRMAat402-742-9230or888-311-3152. Forseriousaccidents,calltheinformationinfirstthen followupwiththewrittenreport.SeriousaccidentsshouldbereportedtoNRMAandRisk Management.IfyouaredrivingaTSBvehicle,followthesameproceduresbutreporttheaccident to Angela LLoyd, Aor(402)471-2381inaccordancewithTSB proceduresandtoNRMA.

•Ifyouareinvolvedinanaccidentbesureyouobtaintheinsuranceinformationfromtheotherdriver regardlessoffaultandwhetherthepolicearecalledornot.

•Checktobesurethattheformisascompleteaspossible.Anybills,estimatesoradditionalmaterials maybesentwiththereportbutdonotdelayfilingwhilewaitingfortheseitems.IftheStatevehicle is coveredby physicaldamageinsurance,notethisclearlyontheform.

•Ifadditionalinformationissentlater,identifyby agency,dateofaccidentandStatedriver.

•IfaStatevehicleoranyvehicleusedonStatebusiness(includinganemployee'spersonalvehicle)is involvedinanaccident,reporttheaccidenttotheagencymotorvehiclecoordinatorandfileaMotor VehicleAccidentReportFormwithNRMA(andTSBifitisaTSBvehicle)within24hoursofthe accident.

•TheaccidentformsshouldbeintheglovecompartmentofallStatevehicles.Formsarealsoavailable ontheRiskManagementwebsiteat retainonecopyofcompletedformsandonecopyshouldbesentorfaxedtoNRMA(andTSBifitis a TSBvehicle)immediately.

ItisimportantthattheinformationbesentthesamedaysothatNRMAisawareoftheaccidentandcan bepreparedtoinvestigateorfieldinquiriesfromtheotherparty.ANRMAadjusterwillinvestigatethe claimandcontactyouragencyandthedriveriftheyneedassistance.Anyinformationyoumayhave regardingtheaccidentshouldberelayedtotheState’sadjuster.Youmayspeakfreelytotheadjuster.

ThevehicledrivermustalsofiletherequiredaccidentreportwiththeAccidentRecordsBureau, DepartmentofRoads.ThisreportdiffersfromtheonefiledwithRiskManagement.

Anemployeeinvolvedinanaccidentshouldneveradmitfault.Anemployeeshouldgivetheinsurance informationfromtheInsuranceIdentificationCardfoundineachvehicleandansweranyquestionsasked by anylawenforcementonthescene.Nomatterhowsmallanaccidentseems,getallinformationfrom theotherparty,e.g.,name,addressandinsurancecarrier,beforeleavingthescene.Otherpartiesshould be directedtoNRMAorRiskManagementiftheyhavefurtherquestions.

AllinjuriestoStateemployeesmustbereportedimmediatelytoFARA,theState’sthirdparty administratorforworkers’compensation,followingthedirectionsforreportingworkers’compensation claims,whichmaybeobtainedfromtheriskmanagementwebsiteorfromyouragencyworkers’ compensationcoordinator.

III. POLICYCOVERAGEDETAIL

ThepolicycoversanyoneoperatingacoveredvehiclewiththepermissionofaStateemployee.The policycoversallState-ownedvehiclesandnon-ownedvehiclesusedonStatebusinessintheUnited States,itsterritoriesandCanada.Sincecoverageincludesstudents,volunteersandotherswhoarenot Stateemployees,aswellasemployeeswhoaredrivingtheirownvehicles(asexcesstotheemployee’s individualinsurance),itisimportantthatallagenciesknowwhoisdrivinganyvehicleonStatebusiness. IfyouhavequestionsorconcernsaboutuseofyourvehiclesorwhowillbecoveredpleasecontactRisk Management.

A. RECOMMENDEDDRIVERSCREENING

1. AnnuallychecktoseethateveryonedrivingonStatebusinesshasacurrentdriver'slicense.

2. Identifyallemployeepositionsthatrequireacommercialdriver’slicense,thentrainandlicensethe employees.

3.ObtainamotorvehiclerecordfromtheDepartmentofMotorVehiclesforallemployeeshiredtodrive anyvehicle,eventheirown,onStatebusiness.Thisrecordshouldbecheckedregularlyforalldrivers includingthosepresentlyemployed. Shouldanaccidentoccur,theStatecouldbefoundnegligentfor allowingemployeeswithpoordrivingrecordstooperatevehiclesontheState’sbehalf?

4. RequirethatallemployeeswhoregularlydriveavehicleonStatebusinesstakearefreshercoursein defensivedrivingeveryfiveyearsandanytimeaticketedaccidentoccurs.

5. Adoptpersonnelrulesthatmakeemployeesaccountableforpoordrivingrecordsandthatallow accommodationsforemployeeswhocannotdrivesafelytemporarilyduetoinjury,illness,seizure disorders,medications,orothermedicalornon-medicalreasons.

B. RENTALCARS

WhenaStateemployeerentsacarundercontractintheUnitedStates,itsterritoriesorCanadaonState business(e.g.,Avis,Hertz),theState’sinsurancepolicywillprovidecoverageinexcessofanyother policyinforce. ThepolicydoesnotprovidecoverageforcarsrentedinothercountriesbesidesCanada. PleasepurchasethecoverageofferedorpurchaseinsuranceattheborderifyouarecrossingintoMexico. TheState’spolicyalsocoversphysicaldamagetoarentalcar,soStateemployeesshouldnot automatically payfor collisiondamagewaiversofferedby rentalcompanies.Pleasenotethattheprovidedcoverageisfor physicaldamageonly,anddoesnotincludeanydowntimeand/orlossofuseallegedby therentalcar company. Therefore, agencies are encouraged to review available rental insurance to determine whether the coverage provided is prudent given the cost plus any deductible the agency may face from the State’s coverage. Your agency would be responsible for paying the premium for this elective coverage.

IfarentedvehiclewillbeusedforbothStateandpersonalbusiness,theStatecoveragewillonlyapplyfor thetimeyouareonStatebusiness.Ifyourpersonalpolicywillnotprovidecoverage,youmaypreferto takethecoverageprovidedby therentalcompany. Insuchacase,thecoverageshouldnotbecharged totheState.

C. VOLUNTEERDRIVERS,PERSONALVEHICLES,GUESTPASSENGERS

Thevolunteerwhousestheirpersonalvehicleforstatebusinessistreatedthesameasanemployeedriving hisorherownvehicleforwork.Thedriver'sowninsuranceisprimaryandthestate’spolicywillonlyapplywhenthevolunteeroremployeehasusedhisorherinsurancelimitsorhasnocoverage. Independent Contractorsarenotvolunteers.RiskManagementencouragesagenciestoaddresstheissue of autousageandinsurancecoverageinallagencycontracts.

ToprotecttheState’sinterests,itisnecessarythateveryagencyscreenvolunteersandemployeesfor:

1. Driver’slicenses.Inspectlicensesannuallyforrenewaldates,restrictionsandpoints.

2. Requiredinsurancecoverage. InspecttheFinancialResponsibilityorInsuranceIDCardsannually.

Theagencyshouldreviewforliabilitylimits,physicaldamagecoverage,anddeductibles.Beaware thatshouldtherebeanaccident,theagencymayberequiredtopaythedeductibleundertheprivate policycoveringthevehicleor mayberesponsibleforotherexpensesthathavenotbeenbudgeted. Additionally,manypersonalpoliciescontainexclusionsforuseofthevehicleforwork,whichmay impactcoverageonthevehicleifanemployeeisdriving.Ifyouhaveanyquestionsaboutthe insurancecoveragepleasecontactRiskManagementforassistance.

3. Gooddrivingrecords. AperiodiccheckwiththeDepartmentofMotorVehiclesto monitoraccrued pointsisadvised,especiallyifavolunteeristransportingotherindividualsforwhomtheStatehas responsibility.

Volunteersshouldberegisteredwiththeagency,havehaddefensivedrivingtrainingwithinthepastfive years,andmustkeeprecordsoftheirtripsby day andhoursoStatebusinesscanbeverifiedifanaccident occurs.

Vehiclesusedonstatebusinessmustbesafe.Anagencyshoulddevelopaprocessforinspectingor verifyingthesafetyofanysuchvehicle.

Whetheritisappropriatetoallowpassengersotherthanstateemployeesandstateclientsinstatevehicles is adecisionlefttoeachagencydirector.Agenciesshouldbeawarethatotherthanforaccidentscausedbyuninsuredorunderinsuredmotoriststhereisnoinsurancecoverageforthesepassengersshouldtheybe injured.Ifthepassengerbelievesaninjuryisduetothestate’sorstateemployee’snegligencethey may fileatortclaimbutthereisnoinsuranceavailableundertheautopolicy.Someagenciesareaskingguest passengerstosignawaiverbeforeridinginstatevehiclesorwithstatedrivers.Asamplewaivermaybe obtainedfromtheRiskManagementwebsiteorbycontactingRiskManagement.Afewagencieswith frequentpassengershaveaskedthatRiskManagementprovidemedicalpaymentcoverageforguest passengers.RiskManagementisnotcurrentlyofferingthiscoverage.Wecontinuetoconsiderthisrequest andthemostreasonablemethodtooffersuchcoverageandwillnotifyagencycoordinators

shouldthiscoveragebecomeavailableinthefuture.