Minimum Levels of Financial Responsibility for Motor Carriers of Property

What this document is

49 C.F.R. Part 387, Subpart A - Minimum Levels of Financial Responsibility for Motor Carriers of Property (ss. 387.1-387.19; s. 387.15 NAMES Form MCS-90 but does NOT print it, and the endorsement text is nowhere in the CFR) is a regulation published by Federal Motor Carrier Safety Administration, U.S. Department of Transportation; Office of the Federal Register / National Archives (Electronic Code of Federal Regulations, eCFR). It is one of the documents that insurance license exam questions are written from, including property & casualty, claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 49 C.F.R. § 387.15 (Forms)

  “§ 387.15 Forms. Endorsements for policies of insurance (Form MCS-90) and surety bonds (Form MCS-82) must be in the form prescribed by the FMCSA and approved by the OMB. Endorsements to policies of insurance and surety bonds shall specify that coverage thereunder will remain in effect continuously...”

• 49 C.F.R. § 387.5 (Definitions, Insured and principal)

  “Insured and principal means the motor carrier named in the policy of insurance, surety bond, endorsement, or notice of cancellation, and also the fiduciary of such motor carrier.”

• 49 C.F.R. § 387.7(b)(1) (Financial responsibility required)

  “(1) Policies of insurance, surety bonds, and endorsements required under this section shall remain in effect continuously until terminated. Cancellation may be effected by the insurer or the insured motor carrier giving 35 days' notice in writing to the other. The 35 days' notice shall commence to...”

• 49 C.F.R. § 387.5 (Definitions, property damage and public liability)

  “Property damage means damage to or loss of use of tangible property. Public liability means liability for bodily injury or property damage and includes liability for environmental restoration.”

• 49 C.F.R. 387.5 (Definitions, accident)

  “Accident includes continuous or repeated exposure to the same conditions resulting in public liability which the insured neither expected nor intended.”

• 49 C.F.R. § 387.9, Table 1 (Schedule of Limits, Public Liability), entry (1)

  “(1) For-hire (In interstate or foreign commerce, with a gross vehicle weight rating of 10,001 or more pounds) Property (nonhazardous) $750,000”

• 49 C.F.R. § 387.9, Table 1 (Schedule of Limits, Public Liability), entry (3)

  “(3) For-hire and Private (In interstate or foreign commerce, in any quantity; or in intrastate commerce, in bulk only; with a gross vehicle weight rating of 10,001 or more pounds) Oil listed in 49 CFR 172.101; hazardous waste, hazardous materials, or hazardous substances defined in 49 CFR 171.8 and...”

• 49 C.F.R. § 387.9, Table 1 (Schedule of Limits, Public Liability), entry (2)

  “(2) For-hire and Private (In interstate, foreign, or intrastate commerce, with a gross vehicle weight rating of 10,001 or more pounds) Hazardous substances, as defined in 49 CFR 171.8, transported in bulk in cargo tanks, portable tanks, or hopper-type vehicles; in bulk Division 1.1, 1.2 or 1.3...”

• 49 C.F.R. § 387.3(c)(1) (Applicability, Exception)

  “(1) The rules in this subpart do not apply to a motor vehicle that has a gross vehicle weight rating (GVWR) of less than 10,001 pounds. This exception does not apply if the vehicle is used to transport any quantity of a Division 1.1, 1.2, or 1.3 material, any quantity of a Division 2.3, Hazard Zone...”

• 49 C.F.R. § 387.3(c)(2) (Applicability, Exception)

  “(2) The rules in this subpart do not apply to the transportation of non-bulk oil, non-bulk hazardous materials, substances, or wastes in intrastate commerce, except that the rules in this subpart do apply to the transportation of a highway route controlled quantity of a Class 7 material as defined...”

• 49 C.F.R. § 387.7(a) (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.”

• 49 C.F.R. § 387.7(d)(1)-(3) (Proof of financial responsibility)

  “(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); (2) A “Motor Carrier Surety Bond for Public Liability Under Section 30 of the Motor Carrier Act of 1980” (Form MCS-82)...”

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