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 âofâ to the word "or" in the paragraph as follows where "company of the insured" will "read company or the insured."
âCancellation 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 FMCSAâs 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).â
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 âofâ 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 âby giving notice to the other party.â 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 âby giving notice to the insured.â 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 carrierâs 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.
Financial Responsibility for Motor Carriers of Passengers and Motor Carriers of Property