Deadly Crash Lead to Calls for Conn. Truck Insurance Rule Changes

The dump truck that caused a fiery, chain-reaction crash in Avon, Conn., that killed four people in July was not covered by liability insurance at the time, according to the trucking company’s insurer.

Bloomfield-based American Crushing and Recycling suspended its coverage for 12 tri-axle vehicles in January, leaving only comprehensive coverage on the vehicles, according to documents filed in U.S. District Court in New Haven by Acadia Insurance Co. of Westbrook, Maine.

Two hours after the July 29 crash, the trucking company, through another insurance company, asked Acadia to resume the liability coverage retroactively to July 1, but did not mention the accident, according to court papers.

American Crushing had received a $39,976 premium refund from Acadia when it suspended its coverages for liability, uninsured motorists, collision and auto medical payments, according to the court documents.

But the trucking company has disputed Acadia’s assertion there was no coverage. Hubert Santos, an attorney for American Crushing and Recycling, said the company’s insurer actually issued several certificates during the spring and summer showing that the trucking company had liability insurance on trucks. “The allegations of the lawsuit are not accurate since the truck involved in the accident had continuous liability coverage at all times, including on July 29, 2005,” Santos said.

Acadia informed victims of the crash that it is requesting a court order stating it is not obligated to cover American Crushing’s old $1 million liability policy or its $2 million umbrella policy, both considered by lawyers to be far less than what is needed to cover potential legal claims from the crash.

“The reason the insurance company is doing this is to cut everything off right now and get a decision by the court saying the insurance company is not stuck in this matter,” said Eric Polinsky, a Hartford attorney representing a man injured in the crash.

Polinsky said he is upset state law does not require American Crushing and other commercial carriers to notify the Department of Motor Vehicles when coverage is suspended. Under state law, the DMV is notified when individuals have their motor vehicle insurance suspended.

DMV spokesman William Seymour said the agency will lobby to close the loophole in state law and require verification of commercial vehicle insurance. “We have no records of their insurance because there is no requirement that the insurance be reported to us,” he said.

Attorney General Richard Blumenthal called on the Motor Vehicles Department to demand proof of insurance from all trucking companies in Connecticut. “The plain stark fact is uninsured trucks are more likely to have safety problems,” Blumenthal said.

Blumenthal also said the DMV does not need the legislature to immediately close a loophole in state law that allowed American Crushing and Recycling to drop its insurance without first notifying state officials. He called on the DMV to adopt an emergency regulation to close the loophole.

But the attorney general said it was questionable whether the DMV has the power to order insurance companies to notify it if coverage for commercial vehicles lapses. He said that would require legislative action.

Gov. M. Jodi Rell, who also vowed to propose legislation to close the loophole, asked the chief state’s attorney to investigate American Crushing for any possible criminal activity for allowing the truck to be on the road without liability insurance. Chief State’s Attorney Christopher Morano said that he would.

Rell also ordered the DMV to suspend the registrations of all trucks owned by American Crushing after another one of its trucks was stopped for allegedly being overweight by more than 18,000 pounds. “The more I learn about this company, the more enraged and horrorstruck I become,” Rell said.

Polinsky said the families of those killed or injured in the crash that want to make a legal claim will have to rely on their own uninsured motorist coverage. Typically, $20,000 is the minimum amount of coverage someone must carry.

Michael J. Riley, president of the Motor Transport Association of Connecticut, said his group supports state officials’ plans to require that the DMV be notified of lapsed insurance coverage for commercial vehicles. “It’s nothing that we went to the legislature and asked for. We want people to be insured, and we don’t want to make it easy for them to be uninsured,” he said.

Trucks in the state were required to carry insurance in 1994, but the law was never changed to require the insurers to contact DMV of any lapses. “It’s like an unintended consequence,” Riley said.

Federal law requires insurance companies for Connecticut trucks that cross state lines, known as interstate carriers, to notify the state DMV if a policy lapses.