In the Matter of: |
The Amendment of Insurance |
Department Regulation No. 37 |
Regulation No. 37, Defensive Driving Course Discount (Automobile and Motorcycles)
PROPOSED ORDER AND RECOMMENDATION
On July 1, 1998, proposed revisions to Regulation 37 were published in the Register of Regulations in accordance with 29 Del C. chapters 11 and 101 and notices of the public hearing to consider such revisions were published in two local newspapers, see Exhibit “ “ attached hereto. Also in accordance with 29 Del C. chapters 11 and 101, a hearing was held on July 27, 1998 before the below-signed hearing officer. The record was held open until August 20, 1998, allowing for the submission of additional exhibits by interested parties. A list of attendees is attached hereto as Exhibit “9”. Exhibit “10” documents the satisfaction of applicable notice requirements.
The following is the Hearing Officer’s Proposed Order and Recommendation in the above captioned matter.
I. Summary of the Evidence
The evidence in this matter consists of the following:
1. The testimony of Ms. Kathy Bergold, Insurance Department Legal Representative who set forth the position of Department with regard to the proposed revisions of Reg. 37 attached hereto as Exhibit “5”. Ms. Bergold’s testimony was supplemented by her written report attached hereto as Exhibit “6”.
2 The testimony of Mr. Robert Reeder of Delaware Defensive Driving, Inc. proposed several revisions to the Department’s draft Reg. 37 concerning, most notably, the make-up of the Defensive Driving Course Credential Committee; perceived conflicts of interest; the course sponsor’s duty to monitor courses taught by its instructors; minimum length of time of the initial course; the course sponsors duty to collect course evaluation forms; and the basic requirements of course instructors such as their experience and driving record. Additionally, Mr. Reeder submitted the results of a student survey attached hereto as Exhibit “1”.
3. The testimony of Marcia Ann Novak, of Mastercraft Safety Consultants, Inc. in favor of reducing the minimum length of time for the initial course from 6 hours. Ms. Novak submitted Exhibit “6” consisting of a letter dated July 29 enclosing course guide books and a letter to the Department dated June 20, 1995.
4. The testimony of Representative David H. Ennis urging the Department to shorten the minimum length of time for the initial course, expressed concerns over the make-up of the Defensive Driving Course Credential Committee, and questioned whether Insurance Department staff acting as instructors presented a conflict of interest for members of the Committee who also held positions with the Insurance Department. Representative Ennis supported his testimony with Exhibits “2” and “3” relating to the issue of the make-up of the Committee. Also entered into the record is Representative Ennis’ letter dated May 26, 1998 marked and attached as Exhibit “7”.
The above numbered paragraphs are intended to summarize briefly the evidence in the record and the testimony received at the hearing. They are not meant to serve as a thorough account of the testimony or otherwise fully set forth the extent of the record.
II. Findings of Fact and Conclusions of Law
Based on the evidence received in this matter, I find that:
A. The Insurance Department’s proposed Regulation 37 establishes needed standards for certifying defensive driving programs and course sponsors.
B. The minimum length if time for an initial defensive driving course should consist of six hours of instruction as recommended by the Department. Additionally, I find that the Department established that a national standard exists regarding the appropriate number of hours of instruction for an initial defensive driving course and that the proposal under consideration satisfies that standard. It is apparent that little or no objective data exists establishing exactly how many hours of instruction is most appropriate for a defensive driving course. I find no evidence to suggest there is anything unique about this jurisdiction that mitigates in favor of deviating from the national standard.
C. The Insurance Department’s proposed Regulation 37 establishes needed standards concerning the certification and de-certification of Defensive driving instructors.
D. I find on the issue of whether Department staff should be disqualified from acting as defensive driving course instructors, that the more well-reasoned approach is for the Defensive Driving Credential Committee to observe practices to avoid conflicts of interest (in whatever form they may arise) on a case-by-case basis with the guidance of counsel.
E. Several non-substantive revisions should be made to the Department’s proposed draft that are reflected in the “marked up” version of the draft attached hereto as Exhibit “8”
III. Recommendation
For the above reasons it is recommended that Insurance Department Regulation No. 37 be amended in the form attached hereto as Exhibit “8”.
SO RECOMMENDED, this 10th day of November, 1998.
Fred A. Townsend III
Hearing Officer
BEFORE THE INSURANCE COMMISSIONER
OF THE STATE OF DELAWARE
In the Matter of: |
The Amendment of Insurance |
Department Regulation No. 37 |
ORDER
COMES NOW, the Insurance Commissioner of the State of Delaware, pursuant to 18 Del. C. section 314 and 29 Del. C. section 10119, and Orders that Insurance Department Regulation No. 37 be amended in conformance with the Proposed Order and Recommendation of the Hearing Officer as follows:
WHEREAS, I have considered the Proposed Order and Recommendation submitted by the Hearing Officer, as well as the entire record of this matter; and
WHEREAS, I adopt the Proposed Order and Recommendation and incorporate the summary of evidence, the proposed findings of fact, and the recommendation of the Hearing Officer by this reference.
NOW THEREFORE, I Order that Regulation No. 37 be amended as referenced herein and reflected in the Proposed Order and Recommendation and its attachments, effective on January 1, 1999.
SO ORDERED this 13th day of November, 1998.
DONNA LEE WILLIAMS
Insurance Commissioner
State of Delaware
REGULATION NO. 37
DEFENSIVE DRIVING COURSE DISCOUNT
(AUTOMOBILES AND MOTORCYCLES)
Adopted: April 20, 1082; effective April 20, 1982
Amendment #1: August 29, 1988
Amendment #2: July 19, 1990
Amendment #3: June 23, 1995
[Amendment #4: January 1, 1999]
Table of Contents
Section I Purpose
Section II Authority
Section III Minimum Requirements
Section IV Application
Section V Implementation
Section VI Defensive Driving Course Credential
Committee
Section VII Certification Criteria for Defensive
Driving Programs
Section VIII De-certification, Suspension and
Probationary Status
Section IX Appeal Procedures
Section X Certification Process for Defensive Driving
Instructors
SECTION I PURPOSE
The purpose of this Regulation is to provide a discount applicable to total premiums for persons who voluntarily attend and complete a Defensive Driving Course and to provide criteria for Defensive Driving Courses, Sponsors and Instructors.
SECTION II AUTHORITY
This Regulation is adopted pursuant to 18 Del. C. Section 314, and 18 Del. C. Section 2503 and promulgated in accordance with the procedures specified in the Administrative Procedures Act, 29 Del. C. Chapter 101.
SECTION III MINIMUM REQUIREMENTS
A Defensive Driving Course Discount shall be applied to the total premiums for bodily injury liability coverage, property damage liability coverage, and personal injury protection coverage provided:
(1) The automobile or motorcycle is individually owned or jointly owned by husband and wife or by members of the same household and is classified and rated as a private passenger automobile or motorcycle; and
(2) The driver who customarily operates the automobile or motorcycle has a certificate certifying voluntary attendance and successful completion within the last 36 months from the date of application of a motor vehicle accident prevention course or motorcycle rider course, as appropriate, which is approved by the Insurance Commissioner.
SECTION IV APPLICATION
(a) A 10% discount shall be applied with respect to the applicable premium(s) for each automobiles or motorcycle insured under a policy if all operators named on the policy as insureds complete the course. If fewer than all the operators covered as principal or occasional drivers complete the course, then the discount shall be a fraction of 10%. The fraction shall be the number of operators completing the course, divided by the total number operators. The discount shall begin at the inception date of the policy or the first renewal date following application by the insured and shall terminate at the policy expiration date subsequent to the expiration of three years since completion of the course.
(b) An insured who has received a defensive driving discount as outlined in (a) (above) may take an refresher defensive driving course within the ninety days prior to the three year expiration date thereof or anytime thereafter and within two years thereof to receive a 15% discount for an additional three year period as outlined in (a) (above). Discounts shall not overlap. The discount may be applied as a multiplier or on an additive basis compatible with the rating system in use by the company.
SECTION V IMPLEMENTATION
Upon the effective date of the Act, the discount shall be first applied to policies written to be effective on or after July 14, 1982 (automobile), or July 19, 1990 (motorcycle), or with renewal dates on or after July 14, 1982 (automobile), or July 19, 1990 (motorcycle), if applied for by the insured, and shall remain in effect for a 3-year period from the effective date of such policies.
The discount may be applied as a multiplier or on an additive basis compatible with the rating system in use by the company.
SECTION VI DEFENSIVE DRIVING COURSE
CREDENTIAL COMMITTEE
(a) To receive the premium discount provided in Section IV, the person must complete a Defensive Driving course approved by the Commissioner. The Commissioner hereby forms an entity known as the Defensive Driving Course Credential Committee ("Committee"). The Committee is appointed to review, examine, and recommend approval or denial, and biannual continuation of approval of course sponsors, who wish to provide a Defensive Driving course for the purpose set out in Section I. In appointing Committee members, the Commissioner shall consider the following characteristics:
(1) The Committee shall be composed of 5 citizens of this State who are not employed by or have any financial interest in any course sponsor; knowledge of principles of teaching and learning;
(2) The Committee shall choose its Chairman and shall recommend to the Commissioner approval or denial of course sponsor-applicants to provide a Defensive Driving Course and biannually review the continuation of approval; knowledge of safe driving principles;
(3) The Committee shall review and examine each application and each applicant to its satisfaction and shall further monitor successful applicants to ensure each course continues to meet the Committee's minimum requirements. The Committee may from time to time recommend amendments to course requirements; knowledge of Delaware Motor Vehicle laws; and
(4) To recommend approval of a course or applicant, the Committee shall require the course contains the following: any other relevant characteristics or experience.
(b.) The Committee shall be composed of five citizens of this State who are not employed by or have any financial interest in any course sponsor and who meet the standards set forth in Section X(a)(1) through (4).
(c.) Duties. The Committee shall:
(1) Choose its Chairman and shall make recommendations to the Commissioner concerning the duties set forth herein;
(2) Review and examine defensive driving course sponsors, instructors and prospective sponsors and instructors to its satisfaction.. Recommend certification, denial of certification or de-certification of a course sponsor or prospective sponsors and applicants.
(3) Review and examine defensive driving courses and shall further monitor courses to ensure each course continues to meet the Committee’s minimum requirements, as outlined in this Regulation. The Committee may from time to time recommend amendments to course requirements.
(4) Certify approved course sponsors and individual instructors for a two year period so long as the course sponsor/instructor continues to meet the requirements of this Regulation; and
(5) Conduct any other such activity reasonably related to the furtherance of its duties.
SECTION VII CERTIFICATION CRITERIA FOR
DEFENSIVE DRIVING PROGRAMS
AND SPONSORS
Each course sponsor shall:
(1) Submit for approval written course description for any defensive driving course to be offered that minimally includes the following elements:
a. The definition of defensive driving and the collision prevention formula serving as the basis for the course;
b. Vehicle safety devices, including the use of seat belts, child restraint devices and their proper use and relationship to a child’s age and size, including the correct placement of a child in a vehicle. Vehicle air bag systems shall be explained in detail with special attention to proper passenger seating and proper use of anti-lock braking systems and how they compare to standard braking systems;
c. A discussion of driving situations as they relate to the condition of the driver, driver characteristics, use of alcohol and legal/illegal drugs, including a discussion of Delaware law on drinking and driving and the use of drugs;
d. A discussion of the five factors affecting driving, being: the condition of the driver, the vehicle, the road, weather and lighting as they pertain to driving defensively;
e. A discussion of specific driving situations, including stopping distances, proper following distances, proper intersection driving, stopping at railroad crossings, right-of-way and traffic devices as well as situations involving passing and being passed and how to protect against head-on collisions; and
f. Consideration of the hazards and techniques of city, highway, expressway and rural driving, including but not limited to proper use of exit and entrance ramps, driving in parking lots and a discussion of Delaware law concerning school buses.
(2) Require its instructors to present courses in a manner consistent with the approved curriculum and otherwise in accordance with the standards set forth herein.
(3) Require that each student receives a minimum of six hours of class time for the initial course and three hours of class time for the [refresher advanced] (renewal) course. Each hour shall consist of not less than 50 minutes of instructional time devoted to the presentation of course curriculum.
(4) Require its instructors to be in the classroom with the students during any and all periods of instructional time.
(5) Require instructors to maintain an atmosphere appropriate for class-work.
(6) Supply students who complete a defensive driving course with a certification of completion that includes, at a minimum, the name of the student, the date of the class, the name of the defensive driving course and the course sponsor’s authorized signature.
(7) Require that each of its instructors request his or her students complete a standardized Course/Instructor Evaluation Form for not less than one-third of the courses provided by each instructor and retain completed evaluation forms until the expiration of the certification period during which they are completed. The Course/Instructor Evaluation Form shall be in the manner and form prescribed by the Committee.
(8) Notify the Division of Motor Vehicles of each students successful completion of the course in the manner and form required by the Division.
SECTION VIII DE-CERTIFICATION, SUSPENSION
AND PROBATIONARY STATUS
(a) Course sponsors and instructors may be de-certified, placed on probation for not more than 90 calendar days, or have certification suspended indefinitely upon a finding of the Committee that the course presented does not meet the criteria set forth in this Regulation. Investigations relating to issues of compliance shall be directed by the Committee.
(b) Prior to de-certification, placement on probation or suspension of certification, the course sponsor/instructor shall be notified, in writing, by the Committee. The course sponsor/instructor shall be given a reasonable opportunity to submit evidence of compliance in his or her defense.
(c) A course sponsor/instructor who is placed on probationary status and does not show proof of compliance with the standards set forth herein within 90 calendar days shall be subject to de-certification at the end of the probationary period.
(d) Course sponsor/instructor may be de-certified, suspended or placed on probation for the following:
(1) Falsification of information on, or accompanying, the Application for Certification/Re-certification;
(2) Falsification of, or failure to keep and provide adequate student records and information as required herein;
(3) Falsification of, or failure to keep and provide adequate financial records and documents as required; and
(4) Failure to comply with any other standard set forth in this Regulation.
SECTION IX APPEAL PROCEDURES
(a) Within 10 business days after the date of written notification of certification denial, suspension, probation or de-certification, the course sponsor/instructor may file an appeal requesting review of the action taken.
(b) The appeal shall be addressed to the Committee, citing the reasons for the request, and accompanied by any other relevant substantiating information.
(c) The Committee shall conduct all hearings pursuant to Title 29, Chapter 101 of the Delaware Code Annotated.
SECTION X CERTIFICATION PROCESS FOR
DEFENSIVE DRIVING INSTRUCTORS
(a) Basic Requirements. Each instructor shall:
(1) Be at least 18 years of age;
(2) Be a high school graduate or have a G.E.D.;
(3) Hold a valid driver’s license with no more than [ 6 4 ] points, no suspensions or revocations in the past two years; and
(4) Have no felony convictions during the past four years and no criminal convictions evidencing moral turpitude. The Committee reserves the right to require a criminal history background check of all applicants for an instructor’s certification.
(b) The Committee may recommend that Basic Requirements (a)(2) through (4) hereof be waived upon a finding that an instructor is qualified and fit to act as an instructor.
(c) Re-certification. Every two years each instructor shall:
(1) Submit evidence that he or she has taught the certified course a minimum of 12 hours the previous [calendar] year;
(2) Submit evidence that he or she attended an in-service update training seminar, or other training session, as provided by, or specified by, a certified defensive driving course sponsor; and
(3) Submit a form as prescribed by the Committee certifying that he or she continues to meet the requirements of an instructor as outlined in this Regulation.
[(4) The above-described submissions shall be filed not later than January 31st of the year in which re-certification is desired. The Committee shall accept requests for re-certification not earlier than November 15th of the preceding year and make reasonable efforts to act on such requests within 30 days of receipt thereof.]
Effective date. This act shall become effective on January [ 1] of 1999.
a. All basic and refresher courses must meet or exceed the American Automobile Association Driving Improvement Program (AAA), the National Safety Council's Defensive Driving Course or the AARP's 55-ALIVE Course;
b. All basic courses must include at least 6 hours in classroom study and all refresher courses must include at least 3 hours of classroom study. In the alternative, the committee is authorized to approve a basic or refresher course which includes "hands-on" defensive driving training and at least 1 hour of classroom instruction;
c. All basic courses must adequately address the following subject areas:
1. The alcohol or drug impaired driver;
2. Preventable accidents and defensive driving techniques;
3. Occupant protection and child restraints and helmet use for motorcycles;
4. The fatigued or physically impaired driver;
5. Stopping and reaction time;
6. Night and bad weather driving; and
7. Proper vehicle maintenance as a safety measure.
d. All refresher courses must reinforce and build upon the content of a basic course.
e. All course instructors shall submit complete and detailed resumés with the course sponsor's application to the Committee to ensure their education, knowledge, ability and competence to teach the course.
(5) The Commissioner will follow the Committee's recommendation, if supported by substantial evidence and not an abuse of discretion, and approve or deny the application. If the Commissioner approves the course sponsor and each individual instructor, that approval shall continue for a period or two years as long as the approved program continues to meet the requirements of this section and requirements that are modified, added or amended from time to time.
(6) Approved Course providers shall notify the Division of Motor Vehicles of the successful completion of the Course by operators in the manner and form required by the Division.
DATE: June 23, 1995 Donna Lee H. Williams
Insurance Commissioner