Petrogram - Winter 2009 - (Page 23)

Insurance ISSUES You Never Really Know… Check Driver Licenses! o m e t i m e s you may be tempted to take shortcuts or overlook background checks on prospective employees, if you know them and feel they are trustworthy. But, you never really know. Even though you use a hiring checkBo Orr list for new employees and try to gather Federated all the right information, you might miss Insurance something. Just because an employee’s motor vehicle record (MVR) shows no violations, you cannot assume his or her driving record is spotless. If you don’t ask to see the employee’s driver’s license or check the number, you may not get an accurate MVR. In some states, Social Security numbers are used as driver’s license numbers. The Social Security Act allows any state to use the Social Security number (SSN) to establish identity. However, individuals or the state may change driver’s license numbers for a variety of reasons. Always ask to see the driver’s license! Be sure to look at the license. Check to see if the driver has changed license numbers, and use the current number and state of license when requesting MVRs. When an old license number is submitted, the MVR report may show “license expired.” This may result in a dispute over the individual’s status and cause unnecessary delays. It’s important to follow up on reports that seem unusual. It may be a simple error – or it could be cause for concern. There are conditions for furnishing and using consumer reports such as MVRs for employment purposes. Employers can get a consumer report on a prospective employee if the individual provides consent. To help comply with the Fair Credit S Reporting Act (FCRA) requirements, you should have prospective or current employees sign a “notice” and/or “release” form before ordering MVRs.1 You can obtain MVRs from local law enforcement centers, your State Department of Motor Vehicles, a consumer-reporting agency or an MVR vendor. Insurance companies can order MVRs for underwriting purposes but may not provide copies or release the informtion to employers. However, the insurer can let you know whether the driver meets its standards for acceptability. Businesses insured with Federated Insurance may use Federated’s Driver Insurability Service to check the insurability of a prospective employee before hiring by calling 800-335-4687. It is always important to check the MVR of any prospective employee who may drive a company vehicle. In most cases, ordering the report is a simple matter, especially if you have an MVR program in place. However, any time you receive a questionable report or one that shows “expired license,” it pays to investigate further. You just never know. ❍ This article is intended to provide general recommendations regarding risk prevention. It is not intended to include all steps or processes necessary to adequately protect you, your business or your customers. You should always consult your personal attorney and insurance professional for advice unique to you and your business. © Copyright 2008 Federated Mutual Insurance Company. All rights reserved. What if… You hire a young man who seems to have the right background and enthusiasm to be a good long-term employee. You’ve known his parents for years as reputable business owners in the community. After a few weeks on the job, the employee runs a red light while driving your company vehicle and hits a van in the intersection. He is cited for the violation and for driving without a license. You assumed the young man had a valid driver’s license and even checked his motor vehicle record. What you didn’t know was that he had moved out of state for a short time after graduation and had been issued a new license in that state. While there, he made a mistake that resulted in his license being revoked – a fact he kept to himself. Potential damages: $1 million or higher Information on the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 may be found at this Federal Trade Commission Web address: Petrogram 1. | Winter 2009 |

Table of Contents for the Digital Edition of Petrogram - Winter 2009

Petrogram - Winter 2009
President’s Perspective
2010 FPMA Patron Members
Enviro Corner
Danger Ahead: Hometown Democracy
Out & About the Industry
Insurance Issues
Drop and Swap, Fishing and Dogs
Barrister’s Counsel
Index of Advertisers/

Petrogram - Winter 2009