ISSUES MAY IMPEDE OPEN BORDERS

According to the National Association of Independent Insurers (NAII), two key issues may create barriers at border crossings recently opened between the U.S. and Mexico under the North American Free Trade Agreement (NAFTA). The first issue centers on two privacy bills working their way through the Mexican federal legislature. The other concerns a statement reportedly issued by the Mexican government saying that on-site inspections of Mexican trucks in Mexico create an un-level playing field. The two privacy bills could have an impact on whether American insurance companies will be able to underwrite Mexican trucks, as they may prevent companies from accessing Mexican motor vehicle records (MVRs). In comments sent to Texas Insurance Commissioner and National Association of Insurance Commissioners (NAIC) Committee Chairman Jose Montemayor, the NAII voiced its concerns about the legislation. “Motor vehicle records have always been critical underwriting tools for automobile underwriters. The privacy provisions that the federal Mexican legislature is considering have created an unexpected and possibly an unintended consequence regarding access to MVR records,” said David Golden, NAII director of commercial lines. “Access to MVRs will not be a problem for Mexican employers in Mexico, but the lack of MVR access for American companies could prevent American underwriters from offering insurance to Mexican motor carriers who wish to carry goods to the interior U.S.” Golden praised the Mexican government for its compliance with European privacy requirements and also for developing a computerized federal database system to help make information about Mexican commercial vehicles available to U.S. insurers. The NAII said some news accounts have indicated that the Mexican government objects to requiring on-site inspections of Mexican trucks, despite the fact that U.S. trucks have on-site checks. American trucks have on-site inspection before getting permanent authority to operate, however, while Mexican motor carriers are required to have on-site inspections before they can get provisional authority, the first level of authority to operate. The NAII said it learned that as many as 62 applications have been delayed because of the inability of the U.S. Department of Transportation to enter Mexico and make on-site inspections.

Topics USA Mexico