Pub. 8 2017 Issue 2

www.wvbankers.org 20 West Virginia Banker hired employee has multiple speeding violations on his record and does not meet the acceptability criteria, the employer may take into consideration the employee’s previous job as a traveling sales representative, which required extensive driving in time sensitive situations. Since this exposure no longer exists, it is unlikely that the employee’s previous driving record will repeat itself in the future. Which employee drivers should be evaluated? Ideally, those employees that the bank determines to be “regular” drivers of company owned or personal vehicles on business. A bank may consider an employee who drives on company business several times a week to be a regular driver while an employee who runs local business errands once or twice a week may not be. Are drivers of company vehicles treated the same as drivers of personal vehicles on company business? It depends on the carrier. An employee’s personal auto policy will provide primary coverage, with the bank’s policy serving as excess coverage. Therefore, it is important to confirm that the employee’s policy provides sufficient liability limits. The bank may want to establish minimum limits for the employ- ee’s auto policy. Suggested limits are $300,000 Combined Single Limit or $100,000/$300,000/$100,000 limits if split between bodily injury and property damage. Are MVRs an end-all/be-all solution? No. While MVRs are a good tool for identifying some bad drivers, it won’t screen out those bad drivers who simply haven’t been caught. One possible option/alternative is telematics--using a GPS-based device to track a vehicle’s movements--which allows an insurance carrier to assess a person’s driving habits. Transmitted data could include the length of uninterrupted driving, how rapid or measured acceleration is, how harsh or smooth braking is and how smooth cornering is (four wheels are better than two wheels). Telematics is another topic for another day. Are there consequences for not having a driver review program in place In addition to possible negligent entrustment issues, an Insured runs the risk of increased loss experience, resulting in increased insurance premiums and possibly fewer carrier choices.  Dirk Hanket is ABA Insurance Services’ P&C Product Manager. For additional information on P&C risk management, Dirk can be reached at 800-274-5222 or dhanket@abais.com  P&C Risk Management Continued from Page 21 Summer 2017 21 West Virginia Banker Zeno, Pockl, Lilly and Copeland, A.C. (ZPLC) is a West Virginia based firm whose principals have spent most of their public accounting careers providing services to financial institutions. ZPLC possesses a great deal of experience, dedication, trust, and even more personality. We believe in providing exceptional service with a high level of personal attention! Community-based financial institutions throughout West Virginia, Ohio, and Pennsylvania have relied on the principals of ZPLC for solutions to their audit, tax, and regulatory compliance needs for over 40 years. Each of the firm’s founders has extensive experience in solving complex issues for community banks, collectively over 128 years of experience at your service. Over 20 such institutions have joined with us as we build upon our reputation as being a valued resource for the industry. Whether you need assistance in the implementation of a complex financial reporting standard or a practical and efficient approach to internal auditing that can stand up to regulatory scrutiny, you can be secure in knowing that ZPLC professionals have the skills and the savvy on which you can rely. As members of the Private Companies Practice Section of the AICPA, as well as the PCAOB, we have extensive qualifications and experience to meet your audit service needs. CERTIFIED PUBLIC ACCOUNTANTS & ADVISORS ZPLC Contact us today if you need services in any of the following: areas: • Financial statement audits • Internal audit outsourcing or co-sourcing arrangements • Income tax planning and preparation • Trust department examinations • Regulatory compliance audits, including BSA, NACHA, OFAC • Merger and acquisition assistance • New bank formations • Going public or going private transactions • SEC reporting assistance • Interest rate risk analysis 980 National Road, Wheeling WV 26003 and 511 N. Fourth Street, Steubenville, OH 43952 304-233-5030 | www.zplcaccounting.com