GARAMENDI TO ADDRESS DANGER OF UNINSURED VEHICLES FROM MEXICO:

Seeking better coordination of insurance programs so that people on California and Mexican highways are protected, Insurance Commissioner John Garamendi lead a delegation to Mexico on April 11 to participate in trilateral negotiations with Mexican and Canadian authorities. The commissioner is the co-chair elect of the Tri-National NAFTA Working Group of the National Association of Insurance Commissioners. “Conflicting and uncoordinated insurance requirements in our three countries have a damaging impact on the flow of trade, and create damaging situations for Californian, Mexican and Canadian motorists,” Commissioner Garamendi said. “Policies sold in one country can be worthless once you cross the border, so many truckers simply drive without insurance. This confused regulatory state is a ripe environment for fraud to thrive.” During his Mexico trip, which built upon principles announced during the recent meeting between President Bush, Mexican President Vicente Fox, and Canadian Prime Minister Paul Martin, the commissioner and New Mexico Superintendent of Insurance and co-chair elect of the working group Eric Serna discussed the problem of cargo insurance to protect against frequent hijackings. Presently there is no insurance product that covers cargo as it crosses the Mexico/U.S. border. “We need to find a way to allow these truckers to get cargo coverage from the beginning of the trip to the end,” Garamendi said. The commissioner and the delegation also looked at solutions to the problem of policy sharing. Trucking companies have been known to buy 10 insurance policies to share with a fleet of 20 or more, merely swapping photocopied certificates to pass inspection or register vehicles.