Motor carriers of passengers and
property must maintain documentation that proves they have in
effect the minimum levels of financial responsibility as set forth
in the Federal Motor Carrier Safety Regulations (FMCSRs). The
non-substantive change is in the final paragraph of page 1 of 2 of
the MCS-90, the Endorsement for Motor Carrier Policies of Insurance
for Public Liability form, and the MCS-90B, the Financial
Responsibility for Motor Carriers of Passengers and Motor Carriers
of Property form, by changing the word “of” to the word "or" in the
paragraph as follows where "company of the insured" will "read
company or the insured." “Cancellation of this endorsement may be
effected by the company of the insured by giving (1) thirty-five
(35) days notice in writing to the other party (said 35 days notice
to commence from the date the notice is mailed, proof of mailing
shall be sufficient proof of notice), and (2) if the insured is
subject to the FMCSA’s registration requirements under 49 U.S.C.
13901, by providing thirty (30) days notice to the FMCSA (said 30
days notice to commence from the date the notice is received by the
FMCSA at its office in Washington, DC).” The impact of this change
is that instead of allowing either the insurance company or the
insured to cancel an endorsement, use of the term “of” would mean
that ONLY the insurance company could cancel. We believe this
change was made in error, because if you look at the remainder of
the sentence, it states “by giving notice to the other party.” If
the change was truly intended to mean that only the insurance
company could cancel, then that later phrase would have also been
changed to read “by giving notice to the insured.” Additionally,
specific regulatory provisions support the idea that either party
can cancel (see 387.7(b)(1) and 387.31(b)(1)). This change should
not impact the current estimate of burden hours or the cost
assigned to that burden, as the endorsements and any cancellation
notices are generally not submitted to FMCSA, just held at the
motor carrier’s primary place of business.
US Code:
49
USC 31139 Name of Law: Motor Carrier Act of 1980
US Code: 49
USC 31138 Name of Law: Bus Regulatory Reform Act of 1982
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Form MCS-90B Financial Responsibility for Motor Carriers of Passengers and Motor Carriers of Property
Justification for Non-Substantive Change for Forms MCS-90 and MCS-90B.docx
2126-008 30-Day FR.pdf
49 CFR 387.doc
Financial Responsibility for Motor Carriers of Passengers and Motor Carriers of Property