Colorado Insurance Pool Moves
Against Non-conforming Vans

DENVER - Despite effort by the National Highway Traffic Safety Administration, and pending legislation by a Colorado congressman to ban their use (see "Udall Proposes Law to Close Used Van Loophole"), the Colorado legislature has steadfastly declined to phase out 15-passenger vans used in school transportation. Now, the self-insurance pool that insures about 130 of the 178 school districts in Colorado has taken matters into its own hands.

At a recent meeting of the Board of Directors, the Colorado School Districts Self Insurance Pool (CSDSIP) reach the decision to restrict coverage of these vehicles when used to transport students for regular route or activity purposes. CSDSIP cited legal restrictions on the sale and purchase of the vans, pending federal legislation that will close the loophole regarding the purchase of used vans, among the reasons for its decision, and recent negative press. In late January the Denver Post published two scathing articles questioning the safety of vans in school transportaiton service.

The CSDSIP decision allows a full four-and-a-half-year phase out of the vehicles.

Effective July 1, 2002 CSDSIP will no longer add to its coverage new or used 15 passenger vans used in transporting students. It will however continue insuring existing vehicles that are declared prior to the July 1 deadline, but add a minimum $1,500 surcharge, depending upon limits, above the current applied rates. Also effective that date CSDSIP will no longer insure 15-passenger vans when rented or leased.

Effective January 1, 2007, CSDSIP will no longer insure any 15-passenger van for transportation students, regardless of any other conditions. "This will allow ample time to phase these vans out of your fleet and replace them with alternative vehicles such as type "a" 14-passenger buses or an allowable alternative vehicles," according to a Feb. 28, 2002 memo to Colorado superintendents, directors of transportation, and chief financial officers from Cheryle Sullivan, Executive Director of CSDSIP.

The policy does not forbid the use of 15 passenger vans for uses such as maintenance and food service. Nor will such use be surcharged.

"We realize that by taking this proactive measure it will affect members financially and considered this when developing the plan," said Sullivan. "However, we do believe the number one priority is the safety and security of students."

Colorado is one of less than two dozen states that permit the use of 11 to 15 passenger non-conforming vans for student transportation. Four states -- Arkansas, Nevada, South Dakota and Texas -- have successfully banned the use of the vans through rulings by the state attorney general.

For an indepth look at the issue of non-conforming vans in school transportaiton service, visit STN's extensive coverage of this controversial topic.