Arresting_Quack
September 14th, 2005, 11:53
Insurance companies are doing their customers a major dis-service and carriers face penalties for non-compliance.
Part 387 requires a motor carrier to have proof of financial responsibility (insurance) at their primary place of business. The US DOT says that proof is provided in the form of a MCS Form 90.
Many insurance underwriters fail to issue the MCS Form 90 and now those that do issue the MCS Form 90 indicating $750,000 of insurance regardless of the amount of insurance the carrier has.
There are two separte violations regarding insurance:
387.7 Financial responsibility required.
(a) No motor carrier shall operate a motor vehicle until the motor carrier has obtained and has in effect the minimum levels of financial responsibility as set forth in 387.9 of this subpart.
(d) Proof of the required financial responsibility shall be maintained at the motor carrier's principal place of business. The proof shall consist of --
(d)(1) "Endorsement(s) for Motor Carrier Policies of Insurance for Public Liability Under Sections 29 and 30 of the Motor Carrier Act of 1980" (Form MCS-90) issued by an insurer(s);
(d)(2) A "Motor Carrier Surety Bond for Public Liability Under Section 30 of the Motor Carrier Act of 1980" (Form MCS-82) issued by a surety; or
(d)(3) A written decision, order, or authorization of the Federal Motor Carrier Safety Administration authorizing a motor carrier to self-insure under 387.309 , provided the motor carrier maintains a satisfactory safety rating as determined by the Federal Motor Carrier Safety Administration under part 385 of this chapter.
387.9 Financial responsibility, minimum levels.
The minimum levels of financial responsibility referred to in
387.7 of this subpart are hereby prescribed as follows:
SCHEDULE OF LIMITS
(Public liability)
The carrier would be cited for Part 387.9 if it were discovered the carrier had $750,000 of insurance when transporting hazardous materials. Whereas, when a carrier transports ANY amount of Haz Mat the carrier must have $1,000,000.
The carrier would be citred for Part 387.7 if the MCS Form 90 indicates $750,000 and the carrier actually has $1,000,000 of insurance on file with the US DOT.
Motor carriers should look at their MCS Form 90 to ensure the MCS Form 90 reflects the amount of insurance being paid for.
Be safe.
Part 387 requires a motor carrier to have proof of financial responsibility (insurance) at their primary place of business. The US DOT says that proof is provided in the form of a MCS Form 90.
Many insurance underwriters fail to issue the MCS Form 90 and now those that do issue the MCS Form 90 indicating $750,000 of insurance regardless of the amount of insurance the carrier has.
There are two separte violations regarding insurance:
387.7 Financial responsibility required.
(a) No motor carrier shall operate a motor vehicle until the motor carrier has obtained and has in effect the minimum levels of financial responsibility as set forth in 387.9 of this subpart.
(d) Proof of the required financial responsibility shall be maintained at the motor carrier's principal place of business. The proof shall consist of --
(d)(1) "Endorsement(s) for Motor Carrier Policies of Insurance for Public Liability Under Sections 29 and 30 of the Motor Carrier Act of 1980" (Form MCS-90) issued by an insurer(s);
(d)(2) A "Motor Carrier Surety Bond for Public Liability Under Section 30 of the Motor Carrier Act of 1980" (Form MCS-82) issued by a surety; or
(d)(3) A written decision, order, or authorization of the Federal Motor Carrier Safety Administration authorizing a motor carrier to self-insure under 387.309 , provided the motor carrier maintains a satisfactory safety rating as determined by the Federal Motor Carrier Safety Administration under part 385 of this chapter.
387.9 Financial responsibility, minimum levels.
The minimum levels of financial responsibility referred to in
387.7 of this subpart are hereby prescribed as follows:
SCHEDULE OF LIMITS
(Public liability)
The carrier would be cited for Part 387.9 if it were discovered the carrier had $750,000 of insurance when transporting hazardous materials. Whereas, when a carrier transports ANY amount of Haz Mat the carrier must have $1,000,000.
The carrier would be citred for Part 387.7 if the MCS Form 90 indicates $750,000 and the carrier actually has $1,000,000 of insurance on file with the US DOT.
Motor carriers should look at their MCS Form 90 to ensure the MCS Form 90 reflects the amount of insurance being paid for.
Be safe.