I am writing today regarding the June 18 Opinion titled "Higher Bonds Still Not the Answer" by Daniel Larson, president and chief operating officer, Pacific Financial Association Inc. (p. 9).
I realize the op-ed is Mr. Larson's
opinion, and I respect the fact that his
opinion is based on his
experiences in the sector of the transportation industry he
is involved in.
I agree with Mr. Larson
that simply increasing the bond/trust amount from the outdated amount of $10,000 to the more industry-practical amount of $100,000 will not resolve all the issues plaguing today's industry, but it is a step in the right direction.
op-ed by asking readers to call and write their members of Congress to generate support for the opinions he
company, Pacific Financial Association
, provides surety instruments on behalf of almost 5,000 licensed transportation brokers - approximately 25% of the entire industry.
went on to say his
company handles, on average, roughly 10,000 claim inquiries per year for the 5,000 brokers insured through PFA
, which averages out to two claims per insured per year.
Even though I am not an insurance expert, I believe that is excessive in any book and most certainly creates a "dire" need for reform.
confused and lost me in his
comparison of the total number of claims filed through PFA
each year vs. the industry total number of authorized motor carriers.
is not implying that, since his
numbers reflect a small average of truckers being ripped off, this is a non-issue?
In regard to the statement by Mr. Larson
that 90% of the claims filed are resolved with a telephone call to the broker: In 2011, OOIDA filed claims with PFA
on behalf of our motor-carrier members totaling $147,544.73; $94,262.73 of that amount is still outstanding.
My final comment addresses the last question posed by Mr. Larson
, "Who protects the brokers?
Under Federal Regulation Title 49 CFR §387.307 and Form BMC-85, not you, Mr. Larson