49 Cfr 387

Pt. 387

49 CFR Ch. III (10–1–04 Edition)

13702, commits a violation for which the penalty is $200 for the first violation and $275 for
each subsequent violation.
(12) A freight forwarder, its officer, agent,
or employee, that assists or willingly permits a person to get service under 49 U.S.C.
13531 at less than the rate in effect under 49
U.S.C. 13702 commits a violation for which
the penalty is up to $550 for the first violation and up to $2,200 for each subsequent violation.
(13) A person who gets or attempts to get
service from a freight forwarder under 49
U.S.C. 13531 at less than the rate in effect
under 49 U.S.C. 13702 commits a violation for
which the penalty is up to $550 for the first
violation and up to $2,200 for each subsequent violation.
(14) A person who knowingly authorizes,
consents to, or permits a violation of 49
U.S.C. 14103 relating to loading and unloading motor vehicles or who knowingly violates subsection (a) of 49 U.S.C. 14103 is liable
for a penalty of not more than $11,000 per
violation.
(15) A person, or an officer, employee, or
agent of that person, who tries to evade regulation under Part B of Subtitle IV, Title 49,
U.S.C., for carriers or brokers is liable for a
penalty of $220 for the first violation and at
least $275 for a subsequent violation.
(16) A person required to make a report to
the Secretary, answer a question, or make,
prepare, or preserve a record under Part B of
Subtitle IV, Title 49, U.S.C., or an officer,
agent, or employee of that person, is liable
for a maximum penalty of $5,500 per violation if it does not make the report, does not
completely and truthfully answer the question within 30 days from the date the Secretary requires the answer, does not make or
preserve the record in the form and manner
prescribed, falsifies, destroys, or changes the
report or record, files a false report or
record, makes a false or incomplete entry in
the record about a business related fact, or
prepares or preserves a record in violation of
a regulation or order of the Secretary.
(17) A motor carrier, water carrier, freight
forwarder, or broker, or their officer, receiver, trustee, lessee, employee, or other
person authorized to receive information
from them, who discloses information identified in 49 U.S.C. 14908 without the permission
of the shipper or consignee is liable for a
maximum penalty of $2,200.
(18) A person who violates a provision of
Part B, Subtitle IV, Title 49, U.S.C., or a regulation or order under Part B, or who violates a condition of registration related to
transportation that is subject to jurisdiction
under subchapter I or III or Chapter 135, or
who violates a condition of registration of a
foreign motor carrier or foreign motor private carrier under section 13902, is liable for
a penalty of $550 for each violation if another

penalty is not provided in 49 U.S.C. Chapter
149.
(19) A violation of Part B, Subtitle IV,
Title 49, U.S.C., committed by a director, officer, receiver, trustee, lessee, agent, or employee of a carrier that is a corporation is
also a violation by the corporation to which
the penalties of Chapter 149 apply. Acts and
omissions of individuals acting in the scope
of their employment with a carrier are considered to be the actions and omissions of
the carrier as well as the individual.
(20) In a proceeding begun under 49 U.S.C.
14902 or 14903, the rate that a carrier publishes, files, or participates in under section
13702 is conclusive proof against the carrier,
its officers, and agents that it is the legal
rate for the transportation or service. Departing, or offering to depart, from that published or filed rate is a violation of 49 U.S.C.
14902 and 14903.
[63 FR 12414, Mar. 13, 1998, as amended at 65
FR 7756, Feb. 16,, 2000; 67 FR 61821, Oct. 2,
2002; 68 FR 15383, Mar. 31, 2003; 69 FR 39371,
June 30, 2004]

PART 387—MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR
MOTOR CARRIERS
Subpart A—Motor Carriers of Property
Sec.
387.1 Purpose and scope.
387.3 Applicability.
387.5 Definitions.
387.7 Financial responsibility required.
387.9 Financial responsibility, minimum
levels.
387.11 State authority and designation of
agent.
387.13 Fiduciaries.
387.15 Forms.
387.17 Violation and penalty.

Subpart B—Motor Carriers of Passengers
387.25 Purpose and scope.
387.27 Applicability.
387.29 Definitions.
387.31 Financial responsibility required.
387.33 Financial responsibility, minimum
levels.
387.35 State authority and designation of
agent.
387.37 Fiduciaries.
387.39 Forms.
387.41 Violation and penalty.

Subpart C—Surety Bonds and Policies of
Insurance for Motor Carriers and Property Brokers
387.301 Surety bond, certificate of insurance, or other securities.

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Federal Motor Carrier Safety Administration, DOT
387.303 Security for the protection of the
public: Minimum limits.
387.305 Combination vehicles.
387.307 Property broker surety bond or trust
fund.
387.309 Qualifications as a self-insurer and
other securities or agreements.
387.311 Bonds and certificates of insurance.
387.313 Forms and procedures.
387.315 Insurance and surety companies.
387.317 Refusal to accept, or revocation by
the FMCSA of surety bonds, etc.
387.319 Fiduciaries.
387.321 Operations in foreign commerce.
387.323 Electronic filing of surety bonds,
trust fund agreements, certificates of insurance and cancellations.

Subpart D—Surety Bonds and Policies of
Insurance for Freight Forwarders
387.401 Definitions.
387.403 General requirements.
387.405 Limits of liability.
387.407 Surety bonds and certificates of insurance.
387.409 Insurance and surety companies.
387.411 Qualifications as a self-insurer and
other securities or agreements.
387.413 Forms and procedure.
387.415 Acceptance and revocation by the
FMCSA.
387.417 Fiduciaries.
387.419 Electronic filing of surety bonds,
certificates of insurance and cancellations.
AUTHORITY: 49 U.S.C. 13101, 13301, 13906,
14701, 31138, and 31139; and 49 CFR 1.73.
EDITORIAL NOTE: Nomenclature changes to
part 387 appear at 66 FR 49873, Oct. 1, 2001.

Subpart A—Motor Carriers of
Property
§ 387.1

Purpose and scope.

This subpart prescribes the minimum
levels of financial responsibility required to be maintained by motor carriers of property operating motor vehicles in interstate, foreign, or intrastate
commerce. The purpose of these regulations is to create additional incentives to motor carriers to maintain and
operate their vehicles in a safe manner
and to assure that motor carriers
maintain an appropriate level of financial responsibility for motor vehicles
operated on public highways.
[46 FR 30982, June 11, 1981, as amended at 48
FR 52683, Nov. 21, 1983]

§ 387.5

§ 387.3 Applicability.
(a) This subpart applies to for-hire
motor carriers operating motor vehicles transporting property in interstate
or foreign commerce.
(b) This subpart applies to motor carriers operating motor vehicles transporting hazardous materials, hazardous
substances, or hazardous wastes in
interstate, foreign, or intrastate commerce.
(c) Exception. (1) The rules in this
part do not apply to a motor vehicle
that has a gross vehicle weight rating
(GVWR) of less than 10,000 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
A, or Division 6.1, Packing Group I,
Hazard Zone A, or to a highway route
controlled quantity of a Class 7 material as it is defined in 49 CFR 173.403, in
interstate or foreign commerce.
(2) The rules in this part 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
part do apply to the transportation of a
highway route controlled quantity of a
Class 7 material as defined in 49 CFR
173.403, in intrastate commerce.
[46 FR 30982, June 11, 1981; 46 FR 45612, Sept.
14, 1981, as amended at 48 FR 5559, Feb. 7,
1983; 48 FR 52683, Nov. 21, 1983; 49 FR 38290,
Sept. 28, 1984; 59 FR 63923, Dec. 12, 1994]

§ 387.5 Definitions.
As used in this subpart—
Accident includes continuous or repeated exposure to the same conditions
resulting in public liability which the
insured neither expected nor intended.
Bodily injury means injury to the
body, sickness, or disease including
death resulting from any of these.
Cancellation of insurance the withdrawal of insurance coverage by either
the insurer or the insured.
Endorsement an amendment to an insurance policy.
Environmental restoration restitution
for the loss, damage, or destruction of
natural resources arising out of the accidental discharge, dispersal, release or
escape into or upon the land, atmosphere, watercourse, or body of water of
any commodity transported by a motor

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§ 387.7

49 CFR Ch. III (10–1–04 Edition)

carrier. This shall include the cost of
removal and the cost of necessary
measure taken to minimize or mitigate
damage to human health, the natural
environment, fish, shellfish, and wildlife.
Evidence of security a surety bond or a
policy of insurance with the appropriate endorsement attached.
Financial responsibility the financial
reserves (e.g., insurance policies or surety bonds) sufficient to satisfy liability
amounts set forth in this subpart covering public liability.
For-hire carriage means the business
of transporting, for compensation, the
goods or property of another.
In bulk—the transportation, as cargo,
of property, except Division 1.1, 1.2, or
1.3 materials, and Division 2.3, Hazard
Zone A gases, in containment systems
with capacities in excess of 3500 water
gallons.
In bulk (Division 1.1, 1.2, and 1.3 explosives)—the transportation, as cargo, of
any Division 1.1, 1.2, or 1.3 materials in
any quantity.
In bulk (Division 2.3, Hazard Zone A or
Division 6.1, Packing Group I, Hazard
Zone A materials)—the transportation,
as cargo, of any Division 2.3, Hazard
Zone A, or Division 6.1, packing Group
I, Hazard Zone A material, in any
quantity.
Insured and principal— the motor carrier named in the policy of insurance,
surety bond, endorsement, or notice of
cancellation, and also the fiduciary of
such motor carrier.
Insurance premium the monetary sum
an insured pays an insurer for acceptance of liability for public liability
claims made against the insured.
Motor carrier means a for-hire motor
carrier or a private motor carrier. The
term includes, but is not limited to, a
motor carrier’s agent, officer, or representative; an employee responsible
for hiring, supervising, training, assigning, or dispatching a driver; or an
employee concerned with the installation, inspection, and maintenance of
motor vehicle equipment and/or accessories.
Property damage means damage to or
loss of use of tangible property.
Public liability liability for bodily injury or property damage and includes
liability for environmental restoration.

State means a State of the United
States, the District of Columbia, Puerto Rico, the Virgin Islands, American
Samoa, Guam, and the Northern Mariana Islands.
[46 FR 30982, June 11, 1981; 46 FR 45612, Sept.
14, 1981; 47 FR 12801, Mar. 25, 1982, as amended
at 48 FR 52683, Nov. 21, 1983; 51 FR 33856,
Sept. 23, 1986; 53 FR 12160, Apr. 13, 1988; 59 FR
63923, Dec. 12, 1994; 62 FR 16709, Apr. 8, 1997;
63 FR 33275, June 18, 1998]

§ 387.7 Financial
quired.

responsibility

(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.
(b)(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 run from the date the notice
is mailed. Proof of mailing shall be sufficient proof of notice.
(2) Exception. Policies of insurance
and surety bonds may be obtained for a
finite period of time to cover any lapse
in continuous compliance.
(3) Exception. A Mexico-domiciled
motor carrier operating solely in municipalities in the United States on the
U.S.-Mexico international border or
within the commercial zones of such
municipalities with a Certificate of
Registration issued under part 368 may
meet the minimum financial responsibility requirements of this subpart by
obtaining insurance coverage, in the
required amounts, for periods of 24
hours or longer, from insurers that
meet the requirements of § 387.11 of this
subpart. A Mexican motor carrier so
insured must have available for inspection in each of its vehicles copies of the
following documents:
(i) The Certificate of Registration;
(ii) The required insurance endorsement (Form MCS–90); and
(iii) An insurance identification card,
binder, or other document issued by an
authorized insurer which specifies both
the effective date and the expiration

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Federal Motor Carrier Safety Administration, DOT
date of the temporary insurance coverage authorized by this exception.
Mexician motor carriers insured under
this exception are also exempt from
the notice of cancellation requirements
stated on Form MCS–90.
(c) Policies of insurance and surety
bonds required under this section may
be replaced by other policies of insurance or surety bonds. The liability of
the retiring insurer or surety, as to
events after the termination date, shall
be considered as having terminated on
the effective date of the replacement
policy of insurance or surety bond or at
the end of the 35 day cancellation period required in paragraph (b) of this
section, whichever is sooner.
(d) Proof of the required financial responsibility shall be maintained at the
motor carrier’s principal place of business. The proof shall consist of—
(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) issued by a surety; or
(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

§ 387.9

maintains a satisfactory safety rating
as determined by the Federal Motor
Carrier Safety Administration under
part 385 of this chapter.
(e) The proof of minimum levels of financial responsibility required by this
section shall be considered public information and be produced for review
upon reasonable request by a member
of the public.
(f) All vehicles operated within the
United States by motor carriers domiciled in a contiguous foreign country,
shall have on board the vehicle a legible copy, in English, of the proof of
the required financial responsibility
(Form MCS–90 or MCS–82) used by the
motor carrier to comply with paragraph (d) of this section.
(g) Any motor vehicle in which there
is no evidence of financial responsibility required by paragraph (f) of this
section shall be denied entry into the
United States.
[46 FR 30982, June 11, 1981; 46 FR 45612, Sept.
14, 1981, as amended at 48 FR 5559, Feb. 7,
1983; 48 FR 52683, Nov. 21, 1983; 51 FR 22083,
June 18, 1986; 54 FR 49092, Nov. 29, 1989; 59 FR
63923, Dec. 12, 1994; 67 FR 12661, Mar. 19, 2002]

§ 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
Type of carriage

Commodity transported

(1) For-hire (In interstate or foreign
commerce, with a gross vehicle
weight rating of 10,001 or more
pounds).
(2) For-hire and Private (In interstate, foreign, or intrastate commerce, with a gross vehicle weight
rating of 10,001 or more pounds).

Property (nonhazardous) ............................................................................

$750,000

Hazardous substances, as defined in 49 CFR 171.8, transported in
cargo tanks, portable tanks, or hopper-type vehicles with capacities in
excess of 3,500 water gallons; or in bulk Division 1.1, 1.2, and 1.3
materials, Division 2.3, Hazard Zone A, or Division 6.1, Packing
Group I, Hazard Zone A material; in bulk Division 2.1 or 2.2; or highway route controlled quantities of a Class 7 material, as defined in 49
CFR 173.403.
Oil listed in 49 CFR 172.101; hazardous waste, hazardous materials,
and hazardous substances defined in 49 CFR 171.8 and listed in 49
CFR 172.101, but not mentioned in (2) above or (4) below.

5,000,000

Any quantity of Division 1.1, 1.2, or 1.3 material; any quantity of a Division 2.3, Hazard Zone A, or Division 6.1, Packing Group I, Hazard
Zone A material; or highway route controlled quantities of a Class 7
material as defined in 49 CFR 173.403.

5,000,000

(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).
(4) For-hire and Private (In interstate
or foreign commerce, with a gross
vehicle weight rating of less than
10,000 pounds).

Jan. 1, 1985

[59 FR 63923, Dec. 12, 1994, as amended at 67 FR 61821, Oct. 2, 2002]

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1,000,000

§ 387.11

49 CFR Ch. III (10–1–04 Edition)

§ 387.11 State authority and designation of agent.
A policy of insurance or surety bond
does not satisfy the financial responsibility requirements of this subpart unless the insurer or surety furnishing
the policy or bond is—
(a) Legally authorized to issue such
policies or bonds in each State in
which the motor carrier operates; or
(b) Legally authorized to issue such
policies or bonds in the State in which
the motor carrier has its principal
place of business or domicile, and is
willing to designate a person upon
whom process, issued by or under the
authority of any court having jurisdiction of the subject matter, may be
served in any proceeding at law or equity brought in any State in which the
motor carrier operates; or
(c) Legally authorized to issue such
policies or bonds in any State of the
United States and eligible as an excess
or surplus lines insurer in any State in
which business is written, and is willing to designate a person upon whom
process, issued by or under the authority of any court having jurisdiction of
the subject matter, may be served in
any proceeding at law or equity
brought in any State in which the
motor carrier operates.
[46 FR 30982, June 11, 1981, as amended at 48
FR 52683, Nov. 21, 1983]

§ 387.13

Fiduciaries.

The coverage of fiduciaries shall attach at the moment of succession of
such fiduciaries.
[46 FR 30982, June 11, 1981]

§ 387.15

Forms.

Endorsements for policies of insurance (Illustration I) and surety bonds
(Illustration II) 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 until terminated, as required in § 387.7 of this
subpart. The continuous coverage requirement does not apply to Mexican
motor
carriers
insured
under
§ 387.7(b)(3) of this subpart. The endorsement and surety bond shall be

issued in the exact name of the motor
carrier.
ILLUSTRATION I
Form MCS–90 (3/82)
Form Approved
OMB No. 2125–0074
ENDORSEMENT FOR MOTOR CARRIER POLICIES
OF INSURANCE FOR PUBLIC LIABILITY UNDER
SECTIONS 29 AND 30 OF THE MOTOR CARRIER
ACT OF 1980
Issued to
llllllllllllllllll
of llllllllllllllllllllll
Dated at lllllllllllllllllll
this ll day of llllllllll, 19ll
Amending Policy No. llllllllllll
Effective Date llllllllllllllll
Name of Insurance Company llllllll
Countersigned by llllllllllll
Authorized Company Representative
The policy to which this endorsement is attached provides primary or excess insurance,
as indicated by ‘‘X’’, for the limits shown:
b This insurance is primary and the company shall not be liable for amounts in excess of $lllll for each accident.
b This insurance is excess and the company
shall not be liable for amounts in excess of
$lllll for each accident in excess of
the underlying limit of $lllll for each
accident.
Whenever required by the FMCSA the company agrees to furnish the FMCSA a duplicate of said policy and all its endorsements.
The company also agrees, upon telephone request by an authorized representative of the
FMCSA, to verify that the policy is in force
as of a particular date. The telephone number to call is: llllll
Cancellation of this endorsement may be effected by the company or 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 jurisdiction, 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).
DEFINITIONS AS USED IN THIS ENDORSEMENT

Accident includes continuous or repeated exposure to conditions which results in bodily injury, property damage, or environmental damage which the insured neither
expected or intended.
Motor Vehicle means a land vehicle, machine,
truck, tractor, trailer, or semitrailer propelled or drawn by mechanical power and
used on a highway for transporting property, or any combination thereof.

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Federal Motor Carrier Safety Administration, DOT
Bodily Injury means injury to the body, sickness, or disease to any person, including
death resulting from any of these.
Environmental Restoration means restitution
for the loss, damage, or destruction of natural resources arising out of the accidental
discharge, dispersal, release or escape into
or upon the land, atmosphere, watercourse,
or body of water, of any commodity transported by a motor carrier. This shall include the cost of removal and the cost of
necessary measures taken to minimize or
mitigate damage to human health, the natural environment, fish, shellfish, and wildlife.
Property Damage means damage to or loss of
use of tangible property.
Public Liability means liability for bodily injury, property damage, and environmental
restoration.
The insurance policy to which this endorsement is attached provides automobile
liability insurance and is amended to assure
compliance by the insured, within the limits
stated herein, as a motor carrier of property,
with sections 29 and 30 of the Motor Carrier
Act of 1980 and the rules and regulations of
the Federal Motor Carrier Safety Administration.
In consideration of the premium stated in
the policy to which this endorsement is attached, the insurer (the company) agrees to
pay, within the limits of liability described
herein, any final judgment recovered against
the insured for public liability resulting
from negligence in the operation, maintenance or use of motor vehicles subject to the
financial responsibility requirements of sections 29 and 30 of the Motor Carrier Act of
1980 regardless of whether or not each motor
vehicle is specifically described in the policy
and whether or not such negligence occurs
on any route or in any territory authorized
to be served by the insured or elsewhere.
Such insurance as is afforded, for public liability, does not apply to injury to or death
of the insured’s employees while engaged in
the course of their employment, or property
transported by the insured, designated as
cargo. It is understood and agreed that no
condition, provision, stipulation, or limitation contained in the policy, this endorsement, or any other endorsement thereon, or
violation thereof, shall relieve the company
from liability or from the payment of any
final judgment, within the limits of liability
herein described, irrespective of the financial
condition, insolvency or bankruptcy of the
insured. However, all terms, conditions, and
limitations in the policy to which the endorsement is attached shall remain in full
force and effect as binding between the insured and the company. The insured agrees
to reimburse the company for any payment
made by the company on account of any accident, claim, or suit involving a breach of
the terms of the policy, and for any payment

§ 387.15

that the company would not have been obligated to make under the provisions of the
policy except for the agreement contained in
this endorsement.
It is further understood and agreed that,
upon failure of the company to pay any final
judgment recovered against the insured as
provided herein, the judgment creditor may
maintain an action in any court of competent jurisdiction against the company to
compel such payment.
The limits of the company’s liability for
the amounts prescribed in this endorsement
apply separately to each accident and any
payment under the policy because of any one
accident shall not operate to reduce the liability of the company for the payment of
final judgments resulting from any other accident.
ILLUSTRATION II
Form MCS–82 (4/83)
(Form approved by Office of Management
and Budget under control no. 2125–0075)

MOTOR CARRIER PUBLIC LIABILITY SURETY
BOND UNDER SECTIONS 29 AND 30 OF THE
MOTOR CARRIER ACT OF 1980
Parties

Surety company and
principal place of
business address

Motor carrier principal, FMCSA Docket No. and principal
place of business

.................................
.................................
.................................
.................................

.................................
.................................
.................................
.................................

Purpose— This is an agreement between the Surety and the Principal
under which the Surety, its successors
and assigness, agree to be responsible
for the payment of any final judgment
or judgments against the Principal for
public liability, property damage, and
environmental restoration liability
claims in the sums prescribed herein;
subject to the governing provisions and
the following conditions.
Governing provisions—(1) Sections 29
and 30 of the Motor Carrier Act of 1980
(49 U.S.C. 13906).
(2) Rules and regulations of the Federal Motor Carrier Safety Administration.
Conditions— The Principal is or intends to become a motor carrier of
property subject to the applicable governing provisions relating to financial
responsibility for the protection of the
public.
This bond assures compliance by the
Principal with the applicable governing provisions, and shall inure to

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§ 387.17

49 CFR Ch. III (10–1–04 Edition)

the benefit of any person or persons
who shall recover a final judgment or
judgments against the Principal for
public liability, property damage, or
environmental restoration liability
claims (excluding injury to or death of
the Principal’s employees while engaged in the course of their employment, and loss of or damange to property of the principal, and the cargo
transported by the Principal). If every
final judgment shall be paid for such
claims resulting from the negligent operation, maintenance, or use of motor
vehicles in transportation subject to
the applicable governing provisions,
then this obligation shall be void, otherwise it will remain in full effect.
Within the limits described herein,
the Surety extends to such losses regardless of whether such motor vehicles are specifically described herein
and whether occurring on the route or
in the territory authorized to be served
by the Principal or elsewhere.
The liability of the Surety on each
motor vehicle subject to the financial
responsibility requirements of Section’s 29 and 30 of the Motor Carrier
Act of 1980 for each accident shall not
exceed $lllll, and shall be a continuing one notwithstanding any recovery hereunder.
The surety agrees, upon telephone request by an authorized representative
of the FMCSA, to verify that the surety bond is in force as of a particular
date. The telephone number is:
llllll
This bond is effective from llll
(12:01 a.m., standard time, at the address of the Principal as stated herein)
and shall countine in force until terminated as described herein. The principal or the Surety may at any time
terminate this bond by giving (1) thirty
five (35) days notice in writing to the
other party (said 35 day notice to commence from the date the notice is
mailed, proof of mailing shall be sufficient proof of notice), and (2) if the
Principal is subject to the FMCSA’s jurisdiction, by providing thirty (30) days
notice to the FMCSA (said 30 days notice to commence from the date notice
is received by the FMCSA at its office
in Washington, DC). The Surety shall
not be liable for the payment of any
judgment or judgments against the

Principal for public liability, property
damage, or environmental restoration
claims resulting from accidents which
occur after the termination of this
bond as described herein, but such termination shall not affect the liability
of the Surety for the payment of any
such judgment or judgments resulting
from accidents which occur during the
time the bond is in effect.
(AFFIX CORPORATE SEAL)
Date lllllllllllllllllllll
Surety llllllllllllllllllll
City lllllllllllllllllllll
State llllllllllllllllllll
By llllllllllllllllllllll
ACKNOWLEDGEMENT OF SURETY
State of lllllllllllllllllll
County of llllllllllllllllll
On this lll day of lll, 19ll, before
me personally came lllll, who, being by
me duly sworn, did depose and say that he/
she resides in lllll; that he/she is the
lllll of the lllll, the corporation
described in and which executed the foregoing instrument; that he/she knows the seal
of said corporation, that the seal affixed to
said instrument is such corporate seal, that
it was so affixed by order of the board of directors of said corporation, that he/she
signed his/her name thereto by like order,
and he/she duly acknowledged to me that he/
she executed the same for and on behalf of
said corporation.
(OFFICIAL SEAL)
llllllllllllllllllllllll
Title of official administering oath lllll
Surety Company File No. llllllllll
[46 FR 30982, June 11, 1981, as amended at 48
FR 52683, Nov. 21, 1983; 49 FR 27292, July 2,
1984; 49 FR 38290, Sept. 28, 1984; 51 FR 33856,
Sept. 23, 1986; 53 FR 12160, Apr. 13, 1988; 54 FR
49092, Nov. 29, 1989; 59 FR 63924, Dec. 12, 1994]

§ 387.17 Violation and penalty.
Any person (except an employee who
acts without knowledge) who knowingly violates the rules of this subpart
shall be liable to the United States for
civil penalty of no more than $11,000 for
each violation, and if any such violation is a continuing one, each day of
violation will constitute a separate offense. The amount of any such penalty
shall be assessed by the FMCSA’s Administrator, by written notice. In determining the amount of such penalty,
the Administrator, or his/her authorized delegate shall take into account
the nature, circumstances, extent, the
gravity of the violation committed

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Federal Motor Carrier Safety Administration, DOT
and, with respect to the person found
to have committed such violation, the
degree of culpability, any history of
prior offenses, ability to pay, effect on
ability to continue to do business, and
such other matters as justice may require.
[59 FR 63924, Dec. 12, 1994]

Subpart B—Motor Carriers of
Passengers
SOURCE: 48 FR 52683, Nov. 21, 1983, unless
otherwise noted.

§ 387.25

Purpose and scope.

This subpart prescribes the minimum
levels of financial responsibility required to be maintained by for-hire
motor carriers of passengers operating
motor vehicles in interstate or foreign
commerce. The purpose of these regulations is to create additional incentives to carriers to operate their vehicles in a safe manner and to assure
that they maintain adequate levels of
financial responsibility.
§ 387.27

Applicability.

(a) This subpart applies to for-hire
motor carriers transporting passengers
in interstate or foreign commerce.
(b) Exception. The rules in this subpart do not apply to—
(1) A motor vehicle transporting only
school children and teachers to or from
school;
(2) A motor vehicle providing taxicab
service and having a seating capacity
of less than 7 passengers and not operated on a regular route or between
specified points;
(3) A motor vehicle carrying less
than 16 individuals in a single daily
round trip to commute to and from
work; and
(4) A motor vehicle operated by a
motor carrier under contract providing
transportation of preprimary, primary,
and secondary students for extracurricular trips organized, sponsored,
and paid by a school district.
[48 FR 52683, Nov. 21, 1983, as amended at 63
FR 33275, June 18, 1998]

§ 387.29

Definitions.

As used in this subpart—

§ 387.29

Accident includes continuous or repeated exposure to the same conditions
resulting in public liability which the
insured neither expected nor intended.
Bodily injury means injury to the
body, sickness, or disease including
death resulting from any of these.
Endorsement an amendment to an insurance policy.
Financial responsibility the financial
reserves (e.g., insurance policies or surety bonds) sufficient to satisfy liability
amounts set forth in this subpart covering public liability.
For-hire carriage means the business
of transporting, for compensation, passengers and their property, including
any compensated transportation of the
goods or property or another.
Insured and principal the motor carrier named in the policy of insurance,
surety bond, endorsement, or notice of
cancellation, and also the fiduciary of
such motor carrier.
Insurance premium the monetary sum
an insured pays an insurer for acceptance of liability for public liability
claims made against the insured.
Motor carrier means a for-hire motor
carrier. The term includes, but is not
limited to, a motor carrier’s agent, officer, or representative; an employee
responsible for hiring, supervising,
training, assigning, or dispatching a
driver; or an employee concerned with
the installation, inspection, and maintenance of motor vehicle equipment
and/or accessories.
Property damage means damage to or
loss of use of tangible property.
Public liability liability for bodily injury or property damage.
Seating capacity any plan view location capable of accommodating a person at least as large as a 5th percentile
adult female, if the overall seat configuration and design and vehicle design is such that the position is likely
to be used as a seating position while
the vehicle is in motion, except for
auxiliary
seating
accommodations
such as temporary or folding jump
seats. Any bench or split bench seat in
a passenger car, truck or multi-purpose
passenger vehicle with a gross vehicle
weight rating less than 10,000 pounds,
having greater than 50 inches of hip
room (measured in accordance with
SEA Standards J1100(a)) shall have not

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§ 387.31

49 CFR Ch. III (10–1–04 Edition)

less than three designated seating positions, unless the seat design or vehicle
design is such that the center position
cannot be used for seating.
[48 FR 52683, Nov. 21, 1983, as amended at 63
FR 33276, June 18, 1998]

§ 387.31 Financial responsibility required.
(a) No motor carrier shall operate a
motor vehicle transporting passengers
until the motor carrier has obtained
and has in effect the minimum levels of
financial responsibility as set forth in
§ 387.33 of this subpart.
(b) Policies of insurance, surety
bonds, and endorsements required
under this section shall remain in effect continuously until terminated.
(1) 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 run from the date the notice is mailed. Proof of mailing shall be
sufficient proof of notice.
(2) Exception. Policies of insurance
and surety bonds may be obtained for a
finite period of time to cover any lapse
in continuous compliance.
(3) Exception. Mexican motor carriers
may meet the minimum financial responsibility requirements of this subpart by obtaining insurance coverage,
in the required amounts, for periods of
24 hours or longer, from insurers that
meet the requirements of § 387.35 of this
subpart. A Mexican motor carrier so
insured must have available for inspection in each of its vehicles copies of the
following documents:
(i) The required insurance endorsement (Form MCS–90B); and
(ii) An insurance identification card,
binder, or other document issued by an
authorized insurer which specifies both
the effective date and the expiration
date of the temporary insurance coverage authorized by this exception.
Mexican motor carriers insured under
this exception are also exempt from
the notice of cancellation requirements
stated on Form MCS–90B.
(c) Policies of insurance and surety
bonds required under this section may
be replaced by other policies of insurance or surety bonds. The liability of
retiring insurer or surety, as to events
after the termination date, shall be

considered as having terminated on the
effective date of the replacement policy of insurance or surety bond or at
the end or the 35 day cancellation period required in paragraph (b) of this
section, whichever is sooner.
(d) Proof of the required financial responsibility shall be maintained at the
motor carrier’s principal place of business. The proof shall consist of—
(1) ‘‘Endorsement(s) for Motor Carriers of Passengers Policies of Insurance for Public Liability Under Section
18 of the Bus Regulatory Reform Act of
1982’’ (Form MCS–90B) issued by an insurer(s); or
(2) A ‘‘Motor Carrier of Passengers
Surety Bond for Public Liability Under
Section 18 of the Bus Regulatory Reform Act of 1982’’ (Form MCS–82B)
issued by a surety.
(e) The proof of minimum levels of financial responsibility required by this
section shall be considered public information and be produced for review
upon reasonable request by a member
of the public.
(f) All passenger carrying vehicles
operated within the United States by
motor carriers domiciled in a contiguous foreign country, shall have on
board the vehicle a legible copy, in
English, of the proof of the required financial responsibility (Forms MCS–90B
or MCS–82B) used by the motor carrier
to comply with paragraph (d) of this
section.
(g) Any motor vehicle in which there
is no evidence of financial responsibility required by paragraph (f) of this
section shall be denied entry into the
United States.
[48 FR 52683, Nov. 21, 1983, as amended at 50
FR 7062, Feb. 20, 1985; 54 FR 49092, Nov. 29,
1989; 60 FR 38743, July 28, 1995]

§ 387.33 Financial responsibility, minimum levels.
The minimum levels of financial responsibility referred to in § 387.31 of
this subpart are hereby prescribed as
follows:
SCHEDULE OF LIMITS
Public Liability
For-hire motor carriers of passengers operating in interstate or foreign commerce.

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Federal Motor Carrier Safety Administration, DOT
Effective dates
Vehicle seating capacity

(1) Any vehicle with a seating capacity of 16 passengers or more
(2) Any vehicle with a seating capacity of 15 passengers or less 1
1 Except

Nov. 19,
1983

Nov. 19,
1985

$2,500,000

$5,000,000

750,000

1,500,000

as provided in § 387.27(b).

§ 387.35 State authority and designation of agent.
A policy of insurance or surety bond
does not satisfy the financial responsibility requirements of this subpart unless the insurer or surety furnishing
the policy or bond is—
(a) Legally authorized to issue such
policies or bonds in each State in
which the motor carrier operates, or
(b) Legally authorized to issue such
policies or bonds in the State in which
the motor carrier has its principal
place of business or domicile, and is
willing to designate a person upon
whom process, issued by or under the
authority of any court having jurisdiction of the subject matter, may be
served in any proceeding at law or equity brought in any State in which the
motor carrier operates; or
(c) Legally authorized to issue such
policies or bonds in any State of the
United States and eligible as an excess

§ 387.39

or surplus lines insurer in any State in
which business is written, and is willing to designate a person upon whom
process, issued by or under the authority of any court having jurisdiction of
the subject matter, may be served in
any proceeding at law or equity
brought in any State in which the
motor carrier operates..
§ 387.37

Fiduciaries.

The coverage of fiduciaries shall attach at the moment of succession of
such fiduciaries.
§ 387.39

Forms.

Endorsements for policies of insurance (Illustration I) and surety bonds
(Illustration II) 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 until terminated, as required in § 387.31 of this
subpart. The continuous coverage requirement does not apply to Mexican
motor
carriers
insured
under
§ 387.31(b)(3) of this subpart. The endorsement and surety bond shall be
issued in the exact name of the motor
carrier.

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§ 387.39

49 CFR Ch. III (10–1–04 Edition)

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Federal Motor Carrier Safety Administration, DOT

§ 387.39

(Approved by the Office of Management and Budget under control number 2125–0518)
[48 FR 52683, Nov. 21, 1983, as amended at 49 FR 22326, May 29, 1984; 54 FR 49093, Nov. 29, 1989;
67 FR 61821, 61822, Oct. 2, 2002]

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1063

§ 387.41

49 CFR Ch. III (10–1–04 Edition)

§ 387.41 Violation and penalty.
Any person (except an employee who
acts without knowledge) who knowingly violates the rules of this subpart
shall be liable to the United States for
civil penalty of no more than $11,000 for
each violation, and if any such violation is a continuing one, each day of
violation will constitute a separate offense. The amount of any such penalty
shall be assessed by the Administrator
or his/her designee, by written notice.
In determining the amount of such
penalty, the Administrator or his/her
designee shall take into account the
nature, circumstances, extent, the
gravity of the violation committed
and, with respect to the person found
to have committed such violation, the
degree of culpability, any history of
prior offenses, ability to pay, effect on
ability to continue to do business, and
such other matters as justice may require.
[53 FR 47543, Nov. 23, 1988]

Subpart C—Surety Bonds and Policies of Insurance for Motor
Carriers and Property Brokers
CROSS REFERENCE: Prescribed forms relating to this part are listed in 49 CFR part 1003.
SOURCE: 32 FR 20032, Dec. 20, 1967, unless
otherwise noted. Redesignated at 61 FR 54709,
Oct. 21, 1996.

§ 387.301 Surety bond, certificate of insurance, or other securities.
(a) Public liability. (1) No common or
contract carrier or foreign (Mexican)
motor private carrier or foreign motor
carrier transporting exempt commodities subject to Subtitle IV, part B,
chapter 135 of title 49 of the U.S. Code
shall engage in interstate or foreign
commerce, and no certificate or permit
shall be issued to such a carrier or remain in force unless and until there
shall have been filed with and accepted
by the FMCSA surety bonds, certificates of insurance, proof of qualifications as self-insurer, or other securities
or agreements, in the amounts prescribed in § 387.303, conditioned to pay
any final judgment recovered against
such motor carrier for bodily injuries
to or the death of any person resulting
from the negligent operation, mainte-

nance or use of motor vehicles in transportation subject to Subtitle IV, part
B, chapter 135 of title 49 of the U.S.
Code, or for loss of or damage to property of others, or, in the case of motor
carriers of property operating freight
vehicles described in § 387.303(b)(2) of
this part, for environmental restoration.
(2) Motor Carriers of property which
are subject to the conditions set forth
in paragraph (a)(1) of this section and
transport the commodities described in
§ 387.303(b)(2), are required to obtain security in the minimum limits prescribed in § 387.303(b)(2).
(b) Common carriers-cargo insurance;
exempt commodities. No common carrier
by motor vehicle subject to Subtitle
IV, part B, chapter 135 of title 49 of the
U.S. Code nor any foreign (Mexican)
common carrier of exempt commodities shall engage in interstate or foreign commerce, nor shall any certificate be issued to such a carrier or remain in force unless and until there
shall have been filed with and accepted
by the FMCSA, a surety bond, certificate of insurance, proof of qualifications as a self-insurer, or other securities or agreements in the amounts prescribed in § 387.303, conditioned upon
such carrier making compensation to
shippers or consignees for all property
belonging to shippers or consignees and
coming into the possession of such carrier in connection with its transportation service: Provided, That the requirements of this paragraph shall not
apply in connection with the transportation of the following commodities:
Agricultural ammonium nitrate.
Agricultural nitrate of soda.
Anhydrous ammonia—used as a fertilizer
only.
Ashes, wood or coal.
Bituminous concrete (also known as blacktop or amosite), including mixtures of asphalt paving.
Cement, dry, in containers or in bulk.
Cement, building blocks.
Charcoal.
Chemical fertilizer.
Cinder blocks.
Cinders, coal.
Coal.
Coke.
Commercial fertilizer.
Concrete materials and added mixtures.
Corn cobs.
Cottonseed hulls.

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Federal Motor Carrier Safety Administration, DOT
Crushed stone.
Drilling salt.
Dry fertilizer.
Fish scrap.
Fly ash.
Forest products; viz: Logs, billets, or bolts,
native woods, Canadian wood or Mexican
pine; pulpwood, fuel wood, wood kindling;
and wood sawdust or shavings (shingle
tow) other than jewelers’ or paraffined.
Foundry and factory sweepings.
Garbage.
Gravel, other than bird gravel.
Hardwood and parquet flooring.
Haydite.
Highway construction materials, when
transported in dump trucks and unloaded
at destination by dumping.
Ice.
Iron ore.
Lime and limestone.
Liquid fertilizer solutions, in bulk, in tank
vehicles.
Lumber.
Manure.
Meat scraps.
Mud drilling salt.
Ores, in bulk, including ore concentrates.
Paving materials, unless contain oil hauled
in tank vehicles.
Peat moss.
Peeler cores.
Plywood.
Poles and piling, other than totem poles.
Potash, used as commercial fertilizer.
Pumice stone, in bulk in dump vehicles.
Salt, in bulk or in bags.
Sand, other than asbestos, bird, iron, monazite, processed, or tobacco sand.
Sawdust.
Scoria stone.
Scrap iron.
Scrap steel.
Shells, clam, mussel, or oyster.
Slag, other than slag with commercial value
for the further extraction of metals.
Slag, derived aggregates—cinders.
Slate, crushed or scrap.
Slurry, as waste material.
Soil, earth or marl, other than infusorial, diatomaceous, tripoli, or inoculated soil or
earth.
Stone, unglazed and unmanufactured, including ground agricultural limestone.
Sugar beet pulp.
Sulphate of ammonia, bulk, used as fertilizer.
Surfactants.
Trap rock.
Treated poles.
Veneer.
Volcanic scoria.
Waste, hazardous and nonhazardous, transported solely for purposes of disposal.
Water, other than mineral or prepared—
water.

§ 387.303

Wood chips, not processed.
Wooden pallets, unassembled.
Wreck or disabled motor vehicles.
Other materials or commodities of low
value, upon specific application to and approval by the FMCSA.

(c) Continuing compliance required.
Such security as is accepted by the
FMCSA in accordance with the requirements of section 13906 of title 49 of the
U.S. Code, shall remain in effect at all
times.
[48 FR 51780, Nov. 14, 1983, as amended at 60
FR 63981, Dec. 13, 1995; 62 FR 49941, Sept. 24,
1997]

§ 387.303 Security for the protection of
the public: Minimum limits.
(a) Definitions. (1) Primary security
means public liability coverage provided by the insurance or surety company responsible for the first dollar of
coverage.
(2) Excess security means public liability coverage above the primary security, or above any additional underlying security, up to and including the
required minimum limits set forth in
paragraph (b)(2) of this section.
(b)(1) Motor carriers subject to
§ 387.301(a)(1) are required to have security for the required minimum limits
as follows:
(i) Small freight vehicles:
Kind of equipment

Transportation provided

Fleet including only vehicles under 10,000
pounds GVWR.

Commodities not subject to
§ 387.303(b)(2).

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$300,000

(ii) Passenger carriers
KIND OF EQUIPMENT
Effective dates
Vehicle seating capacity

(1) Any vehicle with a seating
capacity of 16 passengers or
more .......................................
(2) Any vehicle with a seating
capacity of 15 passengers or
less .........................................

Nov. 19,
1983

Nov. 19,
1985

$2,500,000

$5,000,000

750,000

1,500,000

(2)
Motor
carriers
subject
to
§ 387.301(a)(2) are required to have security for the required minimum limits
as follows:

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§ 387.305

49 CFR Ch. III (10–1–04 Edition)
July 1,
1983*

July 1,
1984*

Property (non-hazardous) ............................................................................

$500,000

$750,000

Hazardous substances, as defined in § 171.8, transported in cargo tanks,
portable tanks, or hopper-type vehicles with capacities in excess of
3,500 water gallons, or in bulk Class A or B explosives, poison gas
(Poison A) liquefied compressed gas or compressed gas, or highway
route controlled quantity radioactive materials as defined in § 173.455.
Oil listed in § 172.101; hazardous waste, hazardous materials and hazardous substances defined in § 171.8 and listed in § 172.101, but not
mentioned in (b) above or (d) below.
Any quantity of Class A or B explosives; any quantity of poison gas (Poison A); or highway route controlled quantity radioactive materials as
defined in § 173.455.

1,000,000

5,000,000

500,000

1,000,000

1,000,000

5,000,000

Kind of equipment
(a) Freight Vehicles of
10,001 Pounds or
More GVWR.
(b) Freight Vehicles of
10,001 Pounds or
More GVWR.

(c) Freight Vehicles of
10,001 Pounds or
More GVWR.
(d) Freight Vehicles
Under 10,001 Pounds
GVWR.

Commodity transported

*NOTE: The effective date of the current required minimum limit in § 387.303(b)(2) was January 6, 1983, in accordance with the
requirements of Pub. L. 97–424, 96 Stat. 2097.

(3) Motor carriers subject to the minimum limits governed by this section,
which are also subject to Department
of Transportation limits requirements,
are at no time required to have security for more than the required minimum limits established by the Secretary of Transportation in the applicable provisions of 49 CFR Part 387—
Minimum Levels of Financial Responsibility for Motor Carriers.
(4) Foreign motor carriers and foreign
motor private carriers. Foreign motor
carriers and foreign motor private carriers (Mexican), subject to the requirements of 49 U.S.C. 13902(c) and 49 CFR
part 368 regarding obtaining certificates of registration from the FMCSA,
must meet our minimum financial responsibility requirements by obtaining
insurance coverage, in the required
amounts, for periods of 24 hours or
longer, from insurance or surety companies, that meet the requirements of
49 CFR 387.315. These carriers must
have available for inspection, in each
vehicle operating in the United States,
copies of the following documents:
(i) The certificate of registration;
(ii) The required insurance endorsement (Form MCS–90); and
(iii) An insurance identification card,
binder, or other document issued by an
authorized insurer which specifies both
the effective date and the expiration
date of the insurance coverage.
Notwithstanding the provisions of
§ 387.301(a)(1), the filing of evidence of
insurance is not required as a condition
to the issuance of a certificate of registration. Further, the reference to
continuous coverage at § 387.313(a)(6)

and the reference to cancellation notice at § 387.313(d) are not applicable to
these carriers.
(c) Motor common carriers: Cargo liability. Security required to compensate
shippers or consignees for loss or damage to property belonging to shippers
or consignees and coming into the possession of motor carriers in connection
with their transportation service, (1)
for loss of or damage to property carried on any one motor vehicle—$5,000,
(2) for less of or damage to or aggregate
of losses or damages of or to property
occurring at any one time and place—
$10,000.
[47 FR 55944, Dec. 14, 1982, as amended at 48
FR 43333, Sept. 23, 1983; 48 FR 45775, Oct. 7,
1983; 48 FR 51780, Nov. 14, 1983; 49 FR 1991,
Jan. 17, 1984; 49 FR 27767, July 6, 1984; 50 FR
40030, Oct. 1, 1985; 53 FR 36984, Sept. 23, 1988;
54 FR 52034, Dec. 20, 1989; 55 FR 47338, Nov. 13,
1990; 62 FR 49941, Sept. 24, 1997; 67 FR 61824,
Oct. 2, 2002; 68 FR 56198, Sept. 30, 2003]

§ 387.305

Combination vehicles.

The following combinations will be
regarded as one motor vehicle for purposes of this part, (a) a tractor and
trailer or semitrailer when the tractor
is engaged solely in drawing the trailer
or semitrailer, and (b) a truck and
trailer when both together bear a single load.
§ 387.307 Property broker surety bond
or trust fund.
(a) Security. A property broker must
have a surety bond or trust fund in effect for $10,000. The FMCSA will not
issue a property broker license until a
surety bond or trust fund for the full

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Federal Motor Carrier Safety Administration, DOT
limits of liability prescribed herein is
in effect. The broker license shall remain valid or effective only as long as
a surety bond or trust fund remains in
effect and shall ensure the financial responsibility of the broker.
(b) Evidence of Security. Evidence of a
surety bond must be filed using the
FMCSA’s prescribed Form BMC 84. Evidence of a trust fund with a financial
institution must be filed using the
FMCSA’s prescribed Form BMC 85. The
surety bond or the trust fund shall ensure the financial responsibility of the
broker by providing for payments to
shippers or motor carriers if the broker
fails to carry out its contracts, agreements, or arrangements for the supplying of transportation by authorized
motor carriers.
(c) Financial Institution—when used in
this section and in forms prescribed
under this section, where not otherwise
distinctly expressed or manifestly incompatible with the intent thereof,
shall
mean—Each
agent,
agency,
branch or office within the United
States of any person, as defined by the
ICC Termination Act, doing business in
one or more of the capacities listed
below:
(1) An insured bank (as defined in
section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h));
(2) A commercial bank or trust company;
(3) An agency or branch of a foreign
bank in the United States;
(4) An insured institution (as defined
in section 401(a) of the National Housing Act (12 U.S.C. 1724(a));
(5) A thrift institution (savings bank,
building and loan association, credit
union, industrial bank or other);
(6) An insurance company;
(7) A loan or finance company; or
(8) A person subject to supervision by
any state or federal bank supervisory
authority.
(d) Forms and Procedures—(1) Forms
for broker surety bonds and trust agreements. Form BMC–84 broker surety
bond will be filed with the FMCSA for
the full security limits under subsection (a); or Form BMC–85 broker
trust fund agreement will be filed with
the FMCSA for the full security limits
under paragraph (a) of this section.

§ 387.309

(2) Broker surety bonds and trust fund
agreements in effect continuously. Surety
bonds and trust fund agreements shall
specify that coverage thereunder will
remain in effect continuously until terminated as herein provided.
(i) Cancellation notice. The surety
bond and the trust fund agreement
may be cancelled as only upon 30 days’
written notice to the FMCSA, on prescribed Form BMC 36, by the principal
or surety for the surety bond, and on
prescribed Form BMC 85, by the
trustor/broker or trustee for the trust
fund agreement. The notice period
commences upon the actual receipt of
the notice at the FMCSA’s Washington, DC office.
(ii)
Termination
by
replacement.
Broker surety bonds or trust fund
agreements which have been accepted
by the FMCSA under these rules may
be replaced by other surety bonds or
trust fund agreements, and the liability of the retiring surety or trustee
under such surety bond or trust fund
agreements shall be considered as having terminated as of the effective date
of the replacement surety bond or trust
fund agreement. However, such termination shall not affect the liability of
the surety or the trustee hereunder for
the payment of any damages arising as
the result of contracts, agreements or
arrangements made by the broker for
the supplying of transportation prior
to the date such termination becomes
effective.
(3) Filing and copies. Broker surety
bonds and trust fund agreements must
be filed with the FMCSA in duplicate.
[53 FR 10396, Mar. 31, 1988]

§ 387.309 Qualifications as a self-insurer and other securities or agreements.
(a) As a self-insurer. The FMCSA will
consider and will approve, subject to
appropriate and reasonable conditions,
the application of a motor carrier to
qualify as a self-insurer, if the carrier
furnishes a true and accurate statement of its financial condition and
other evidence that establishes to the
satisfaction of the FMCSA the ability
of the motor carrier to satisfy its obligation for bodily injury liability, property damage liability, or cargo liability. Application Guidelines: In addition

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§ 387.311

49 CFR Ch. III (10–1–04 Edition)

to filing Form BMC 40, applicants for
authority to self-insure against bodily
injury and property damage claims
should submit evidence that will allow
the FMCSA to determine:
(1) The adequacy of the tangible net
worth of the motor carrier in relation
to the size of operations and the extent
of its request for self-insurance authority. Applicant should demonstrate that
it will maintain a net worth that will
ensure that it will be able to meet its
statutory obligations to the public to
indemnify all claimants in the event of
loss.
(2) The existence of a sound self-insurance program. Applicant should demonstrate that it has established, and
will maintain, an insurance program
that will protect the public against all
claims to the same extent as the minimum security limits applicable to applicant under § 387.303 of this part. Such
a program may include, but not be limited to, one or more of the following:
Irrevocable letters of credit; irrevocable trust funds; reserves; sinking
funds; third-party financial guarantees,
parent company or affiliate sureties;
excess insurance coverage; or other
similar arrangements.
(3) The existence of an adequate safety
program. Applicant must submit evidence of a current ‘‘satisfactory’’ safety
rating by the United States Department of Transportation. Non-rated carriers need only certify that they have
not been rated. Applications by carriers with a less than satisfactory rating will be summarily denied. Any selfinsurance authority granted by the
FMCSA will automatically expire 30
days after a carrier receives a less than
satisfactory rating from DOT.
(4) Additional information. Applicant
must submit such additional information to support its application as the
FMCSA may require.
(b) Other securities or agreements. The
FMCSA also will consider applications
for approval of other securities or
agreements and will approve any such
application if satisfied that the security or agreement offered will afford

the security for protection of the public contemplated by 49 U.S.C. 13906.
[48 FR 51780, Nov. 14, 1983 and 51 FR 15008,
Apr. 22, 1986, as amended at 52 FR 3815, Feb.
6, 1987; 62 FR 49941, Sept. 24, 1997; 68 FR 56199,
Sept. 30, 2003]

§ 387.311 Bonds and certificates of insurance.
(a) Public liability. Each Form BMC 82
surety bond filed with the FMCSA
must be for the full limits of liability
required under § 387.303(b)(1). Form
MCS–82 surety bonds and other forms
of similar import prescribed by the Department of Transportation, may be
aggregated to comply with the minimum security limits required under
§ 387.303(b)(1) or § 387.303(b)(2). Each
Form BMC 91 certificate of insurance
filed with the FMCSA will always represent the full security minimum limits required for the particular carrier,
while it remains in force, under
§ 387.303(b)(1) or § 387.303(b)(2), whichever is applicable. Any previously executed Form BMC 91 filed before the
current revision which is left on file
with the FMCSA after the effective
date of this regulation, and not canceled within 30 days of that date will be
deemed to certify the same coverage
limits as would the filing of a revised
Form BMC 91. Each Form BMC 91X certificate of insurance filed with the
FMCSA will represent the full security
limits
under
§ 387.303(b)(1)
or
§ 387.303(b)(2) or the specific security
limits of coverage as indicated on the
face of the form. If the filing reflects
aggregation, the certificate must show
clearly whether the insurance is primary or, if excess coverage, the
amount of underlying coverage as well
as amount of the maximum limits of
coverage. * Each Form BMC 91MX certificate of insurance filed with the
FMCSA will represent the security
limits of coverage as indicated on the
face of the form. The Form BMC 91MX
must show clearly whether the insurance is primary or, if excess coverage,
the amount of underlying coverage as
*NOTE: Aggregation to meet the requirement of § 387.303(b)(1) will not be allowed
until the completion of our rulemaking in Ex
Parte No. MC–5 (Sub-No. 2), Motor Carrier and
Freight Forwarder Insurance Procedures and
Minimum Amounts of Liability.

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Federal Motor Carrier Safety Administration, DOT
well as amount of the maximum limits
of coverage.
(b) Cargo Liability. Each form BMC 83
surety bond filed with the FMCSA
must be for the full limits of liability
required under § 387.303(c). Each Form
BMC 34 certificate of insurance filed
with the FMCSA will represent the full
security limits under § 387.303(c) or the
specific security limits of coverage as
indicated on the face of the form. If the
filing reflects aggregation, the certificate must show clearly whether the insurance is primary or, if excess coverage, the amount of underlying coverage as well as amount of the maximum limits of coverage.
(c) Each policy of insurance in connection with the certificate of insurance which is filed with the FMCSA,
shall be amended by attachment of the
appropriate endorsement prescribed by
the FMCSA and the certificate of insurance filed must accurately reflect
that endorsement.
[47 FR 55944, Dec. 14, 1982, as amended at 48
FR 43332, Sept. 23, 1983; 48 FR 51781, Nov. 14,
1983; 50 FR 40030, Oct. 1, 1985; 62 FR 49941,
Sept. 24, 1997; 68 FR 56199, Sept. 30, 2003]

§ 387.313 Forms and procedures.
(a) Forms for endorsements, certificates
of insurance and others. (1) In form prescribed. Endorsements for policies of insurance and surety bonds, certificates
of insurance, applications to qualify as
a self-insurer, or for approval of other
securities or agreements, and notices
of cancellation must be in the form
prescribed and approved by the
FMCSA.
(2) Aggregation of Insurance.** When
insurance is provided by more than one
insurer in order to aggregate security
limits for carriers operating only
freight vehicles under 10,000 pounds
Gross Vehicle Weight Rating, as defined in § 387.303(b)(1), a separate Form
BMC 90, with the specific amounts of
underlying and limits of coverage
**NOTE: See NOTE for Rule 387.311. Also, it
should be noted that DOT is considering prescribing adaptations of the Form MCS 90 endorsement and the Form MCS 82 surety bond
for use by passenger carriers and Rules
§§ 387.311 and 387.313 have been written sufficiently broad to provide for this contingency
when new forms are prescribed by that Agency.

§ 387.313

shown thereon or appended thereto,
and Form BMC 91X certificate is required of each insurer.
For aggregation of insurance for all
other carriers to cover security limits
under § 387.303 (b)(1) or (b)(2), a separate
Department of Transportation prescribed form endorsement and Form
BMC 91X certificate is required of each
insurer. When insurance is provided by
more than one insurer to aggregate
coverage for security limits under
§ 387.303(c) a separate Form BMC 32 endorsement and Form BMC 34 certificate of insurance is required for each
insurer.
For aggregation of insurance for foreign motor private carriers of nonhazardous commodities to cover security
limits under § 387.303(b)(4), a separate
Form BMC 90 with the specific
amounts of underlying and limits of
coverage shown thereon or appended
thereto, or Department of Transportation prescribed form endorsement,
and Form BMC 91MX certificate is required for each insurer.
(3) Use of Certificates and Endorsements
in BMC Series. Form BMC 91 certificates
of insurance will be filed with the
FMCSA for the full security limits
under § 387.303 (b)(1) or (b)(2).
Form BMC 91X certificate of insurance
will be filed to represent full coverage
or any level of aggregation for the security limits under § 387.303 (b)(1) or
(b)(2).
Form BMC 90 endorsement will be used
with each filing of Form BMC 91 or
Form 91X certificate with the FMCSA
which certifies to coverage not governed by the requirements of the Department of Transportation. Form BMC
32 endorsement and Form BMC 34 certificate of insurance and Form BMC 83
surety bonds are used for the limits of
cargo liability under § 387.303(c).
Form BMC 91MX certificate of insurance will be filed to represent any level
of aggregation for the security limits
under § 387.303(b)(4).
(4) Use of Endorsements in MCS Series.
When Security limits certified under
§ 387.303 (b)(1) or (b)(2) involves coverage also required by the Department
of Transportation a Form MCS endorsement prescribed by the Department of
Transportation such as, and including,

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§ 387.315

49 CFR Ch. III (10–1–04 Edition)

the Form MCS 90 endorsement is required.
(5) Surety bonds. When surety bonds
are used rather than certificates of insurance, Form BMC 82 is required for
the security limits under § 387.303(b)(1)
not subject to regulation by the Department of Transportation, and Form
MCS 82, or any form of similar import
prescribed by the Department of Transportation, is used for the security limits subject also to minimum coverage
requirements of the Department of
Transportation.
(6) Surety bonds and certificates in effect continuously. Surety bonds and certificates of insurance shall specify that
coverage thereunder will remain in effect continuously until terminated as
herein provided, except: (1) When filed
expressly to fill prior gaps or lapses in
coverage or to cover grants of emergency temporary authority of unusually short duration and the filing clearly so indicates, or (2) in special or unusual circumstances, when special permission is obtained for filing certificates of insurance or surety bonds on
terms meeting other particular needs
of the situation.
(b) Filing and copies. Certificates of
insurance, surety bonds, and notices of
cancellation must be filed with the
FMCSA in triplicate.
(c) Name of insured. Certificates of insurance and surety bonds shall be
issued in the full and correct name of
the individual, partnership, corporation or other person to whom the certificate, permit, or license is, or is to
be, issued. In the case of a partnership,
all partners shall be named.
(d) Cancellation notice. Except as provided in paragraph (e) of this section,
surety bonds, certificates of insurance
and other securities or agreements
shall not be cancelled or withdrawn
until 30 days after written notice has
been submitted to the FMCSA at its offices in Washington, DC, on the prescribed form (Form BMC–35, Notice of
Cancellation Motor Carrier Policies of
Insurance under 49 U.S.C. 13906, and
BMC–36, Notice of Cancellation Motor
Carrier and Broker Surety Bonds, as
appropriate) by the insurance company, surety or sureties, motor carrier,
broker or other party thereto, as the
case may be, which period of thirty (30)

days shall commence to run from the
date such notice on the prescribed form
is actually received by the FMCSA.
(e) Termination by replacement. Certificates of insurance or surety bonds
which have been accepted by the
FMCSA under these rules may be replaced by other certificates of insurance, surety bonds or other security,
and the liability of the retiring insurer
or surety under such certificates of insurance or surety bonds shall be considered as having terminated as of the
effective date of the replacement certificate of insurance, surety bond or
other security, provided the said replacement certificate, bond or other security is acceptable to the FMCSA
under the rules and regulations in this
part.
[47 FR 55944, Dec. 14, 1982, as amended at 48
FR 43334, Sept. 23, 1983; 48 FR 51781, Nov. 14,
1983; 50 FR 40030, Oct. 1, 1985; 51 FR 34623,
Sept. 30, 1986; 62 FR 49941, Sept. 24, 1997]

§ 387.315 Insurance and surety companies.
A certificate of insurance or surety
bond will not be accepted by the
FMCSA unless issued by an insurance
or surety company that is authorized
(licensed or admitted) to issue bonds or
underlying insurance policies:
(a) In each state in which the motor
carrier is authorized by the FMCSA to
operate, or
(b) In the state in which the motor
carrier has its principal place of business or domicile, and will designate in
writing upon request by the FMCSA, a
person upon whom process, issued by or
under the authority of a court of competent jurisdiction, may be served in
any proceeding at law or equity
brought in any state in which the carrier operates, or
(c) In any state, and is eligible as an
excess or surplus lines insurer in any
state in which business is written, and
will make the designation of process
agent described in paragraph (b) of this
section.
[56 FR 28111, June 19, 1991]

§ 387.317 Refusal to accept, or revocation by the FMCSA of surety bonds,
etc.
The FMCSA may, at any time, refuse
to accept or may revoke its acceptance

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Federal Motor Carrier Safety Administration, DOT
of any surety bond, certificate of insurance, qualifications as a self-insurer, or
other securities or agreements if, in its
judgment such security does not comply with these sections or for any reason fails to provide satisfactory or adequate protection for the public. Revocation of acceptance of any certificate
of insurance, surety bond or other security shall not relieve the motor carrier from compliance with § 387.301(d).
[47 FR 55945, Dec. 14, 1982, as amended at 62
FR 49942, Sept. 24, 1997]

§ 387.319 Fiduciaries.
(a) Definitions. The terms ‘‘insured’’
and ‘‘principal’’ as used in a certificate
of insurance, surety bond, and notice of
cancellation, filed by or for a motor
carrier, include the motor carrier and
its fiduciary as of the moment of succession. The term ‘‘fiduciary’’ means
any person authorized by law to collect
and preserve property of incapacitated,
financially disabled, bankrupt, or deceased holders of operating rights, and
assignees of such holders.
(b) Insurance coverage in behalf of fiduciaries to apply concurrently. The coverage furnished under the provisions of
this section on behalf of fiduciaries
shall not apply subsequent to the effective date of other insurance, or other
security, filed with and approved by
the FMCSA in behalf of such fiduciaries. After the coverage provided in
this section shall have been in effect
thirty (30) days, it may be cancelled or
withdrawn within the succeeding period of thirty (30) days by the insurer,
the insured, the surety, or the principal upon ten (10) days’ notice in writing to the FMCSA at its office in Washington, DC, which period of ten (10)
days shall commence to run from the
date such notice is actually received by
the FMCSA. After such coverage has
been in effect for a total of sixty (60)
days, it may be cancelled or withdrawn
only in accordance with § 1043.7.

§ 387.323

country or between a place in one foreign country and a place in another
foreign country unless and until there
shall have been filed with and accepted
by the FMCSA a certificate of insurance, surety bond, proof of qualifications as a self-insurer, or other securities or agreements in the amount prescribed in § 387.303(b), conditioned to
pay any final judgment recovered
against such motor carrier for bodily
injuries to or the death of any person
resulting from the negligent operation,
maintenance, or use of motor vehicles
in transportation between places in a
foreign country or between a place in
one foreign country and a place in another foreign country, insofar as such
transportation takes place in the
United States, or for loss of or damage
to property of others. The security for
the protection of the public required by
this section shall be maintained in effect at all times and shall be subject to
the provisions of §§ 387.309 through
387.319. The requirements of § 387.315(a)
shall be satisfied if the insurance or
surety company, in addition to having
been approved by the FMCSA, is legally authorized to issue policies or
surety bonds in at least one of the
States in the United States, or one of
the Provinces in Canada, and has filed
with the FMCSA the name and address
of a person upon whom legal process
may be served in each State in or
through which the motor carrier operates. Such designation may from time
to time be changed by like designation
similarly filed, but shall be maintained
during the effectiveness of any certificate of insurance or surety bond issued
by the company, and thereafter with
respect to any claims arising during
the effectiveness of such certificate or
bond. The term ‘‘motor carrier’’ as used
in this section shall not include private
carriers or carriers operating under the
partial exemption from regulation in 49
U.S.C. 13503 and 13506.

[32 FR 20032, Dec. 20, 1967, as amended at 47
FR 49596, Nov. 1, 1982; 47 FR 55945, Dec. 14,
1982; 55 FR 11197, Mar. 27, 1990]

[47 FR 55945, Dec. 14, 1982, as amended at 62
FR 49942, Sept. 24, 1997]

§ 387.321 Operations in foreign commerce.
No motor carrier may operate in the
United States in the course of transportation between places in a foreign

§ 387.323 Electronic filing of surety
bonds, trust fund agreements, certificates of insurance and cancellations.
(a) Insurers may, at their option and
in accordance with the requirements

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§ 387.401

49 CFR Ch. III (10–1–04 Edition)

and procedures set forth in paragraphs
(a) through (d) of this section, file
forms BMC 34, BMC 35, BMC 36, BMC
82, BMC 83, BMC 84, BMC 85, BMC 91,
and BMC 91X electronically, in lieu of
using the prescribed printed forms.
(b) Each insurer must obtain authorization to file electronically by registering with the FMCSA. An individual account number and password
for computer access will be issued to
each registered insurer.

(c) Filings may be transmitted online
via the Internet at: http://fhwali.volpe.dot.gov or via American Standard Code Information Interchange
(ASCII). All ASCII transmission must
be in fixed format, i.e., all records must
have the same number of fields and
same length. The record layouts for
ASCII electronic transactions are described in the following table:

ELECTRONIC INSURANCE FILING TRANSACTIONS
Field name

Required
F=filing
C=cancel
B=both

Number of positions

Description

Record type ...................

1 Numeric ....................

Insurer number ..............

8 Text ...........................

Filing type ......................

1 Numeric ....................

FMCSA docket number

8 Text ...........................

Insured legal name .......
Insured d/b/a name .......

120 Text .......................
60 Text .........................

Insured
Insured
Insured
Insured

address ............
city ....................
state .................
zip code ............

35 Text .........................
30 Text .........................
2 Text ...........................
9 Numeric

Insured country .............
Form code .....................

2 Text ...........................
10 Text .........................

Full, primary or excess
coverage.

1 Text ...........................

Limit of liability ...............
Underlying limit of liability.
Effective date ................

5 Numeric ....................
5 Numeric ....................

Policy number ...............

25 Text .........................

1=Filing
2=Cancellation
FMCSA Assigned Insurer Number
(Home
Office)
With
Suffix
(Issuing Office), If Different, e.g.
12345–01.
1 = BI&PD
2 = Cargo
3 = Bond
4 = Trust Fund
FMCSA Assigned MC or FF Number, e.g., MC000045.
Legal Name .....................................
Doing Business As Name If Different From Legal Name.
Either street or mailing address ......
.........................................................
.........................................................
(Do not include dash if using 9 digit
code).
(Will default to US) ..........................
BMC–91, BMC–91X, BMC–34,
BMC–35, etc.
If BMC–91X, P or E = indicator of
primary or excess policy; 1 = Full
under § 387.303(b)(1); 2 = Full
under § 387.303(b)(2).
$ in Thousands ...............................
$ in Thousands (will default to $000
if Primary).
MM/DD/YY Format for both Filing
or Cancellation.
Surety companies may enter bond
number.

8 Text ...........................

(d) All registered insurers agree to
furnish upon request to the FMCSA a
duplicate original of any policy (or
policies) and all endorsements, surety
bond, trust fund agreement, or other
filing.
[60 FR 16810, Apr. 3, 1995, as amended at 62
FR 49942, Sept. 24, 1997; 66 FR 49873, Oct. 1,
2001]

Start
field

End field

B

1

1

B

2

9

B

10

10

B

11

18

B
B

19
139

138
198

B
B
B
B

199
234
264
266

233
263
265
274

B
B

275
277

276
286

F

287

287

F
F

288
293

292
297

B

298

305

B

306

330

Subpart D—Surety Bonds and Policies of Insurance for Freight
Forwarders
SOURCE: 55 FR 11201, Mar. 27, 1990, unless
otherwise noted. Redesignated at 61 FR 54710,
Oct. 21, 1996.

§ 387.401

Definitions.

(a) Freight forwarder means a person
holding itself out to the general public

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Federal Motor Carrier Safety Administration, DOT
(other than as an express, pipeline,
rail, sleeping car, motor, or water carrier) to provide transportation of property for compensation in interstate
commerce, and in the ordinary course
of its business:
(1) Performs or provides for assembling, consolidating, break-bulk, and
distribution of shipments; and
(2) Assumes responsibility for transportation from place of receipt to destination; and
(3) Uses for any part of the transportation a carrier subject to FMCSA jurisdiction.
(b) Household goods freight forwarder
(HHGFF) means a freight forwarder of
household goods, unaccompanied baggage, or used automobiles.
(c) Motor vehicle means any vehicle,
machine,
tractor,
trailer,
or
semitrailer propelled or drawn by mechanical power and used to transport
property, but does not include any vehicle, locomotive, or car operated exclusively on a rail or rails. The following combinations will be regarded
as one motor vehicle:
(1) A tractor that draws a trailer or
semitrailer; and
(2) A truck and trailer bearing a single load.
§ 387.403 General requirements.
(a) Cargo. A freight forwarder (including a HHGFF) may not operate
until it has filed with the FMCSA an
approriate surety bond, certificate of
insurance, qualifications as a self-insurer, or other securities or agreements, in the amounts prescribed at
§ 387.405, for loss of or damage to property.
(b) Public liability. A HHGFF may not
perform transfer, collection, and delivery service until it has filed with the
FMCSA an appropriate surety bond,
certificate of insurance, qualifications
as a self-insurer, or other securities or
agreements, in the amounts prescribed
at § 387.405, conditioned to pay any
final judgment recovered against such
HHGFF for bodily injury to or the
death of any person, or loss of or damage to property (except cargo) of others, or, in the case of freight vehicles
described at 49 CFR 387.303(b)(2), for environmental
restoration,
resulting
from the negligent operation, mainte-

§ 387.409

nance, or use of motor vehicles operated by or under its control in performing such service.
[55 FR 11201, Mar. 27, 1990. Redesignated at 61
FR 54710, Oct. 21, 1996, as amended at 62 FR
49942, Sept. 24, 1997]

§ 387.405

Limits of liability.

The minimum amounts for cargo and
public liability security are identical
to those prescribed for motor carriers
at 49 CFR 387.303.
[55 FR 11201, Mar. 27, 1990. Redesignated at 61
FR 54710, Oct. 21, 1996, as amended at 62 FR
49942, Sept. 24, 1997]

§ 387.407 Surety bonds and certificates
of insurance.
(a) The limits of liability under
§ 387.405 may be provided by aggregation under the procedures at 49 CFR
part 387, subpart C.
(b) Each policy of insurance used in
connection with a certificate of insurance filed with the FMCSA shall be
amended by attachment of the appropriate endorsement prescribed by the
FMCSA (or the Department of Transportation, where applicable).
[55 FR 11201, Mar. 27, 1990. Redesignated at 61
FR 54710, Oct. 21, 1996, as amended at 62 FR
49942, Sept. 24, 1997]

§ 387.409 Insurance and surety companies.
A certificate of insurance or surety
bond will not be accepted by the
FMCSA unless issued by an insurance
or surety company that is authorized
(licensed or admitted) to issue bonds or
underlying insurance policies:
(a) In each state in which the freight
forwarder is authorized by the FMCSA
to perform service, or
(b) In the state in which the freight
forwarder has its principal place of
business or domicile, and will designate in writing upon request by the
FMCSA, a person upon whom process,
issued by or under the authority of a
court of competent jurisdiction, may
be served in any proceeding at law or
equity brought in any state in which
the freight forwarder performs service;
or
(c) In any state, and is eligible as an
excess or surplus lines insurer in any
state in which business is written, and

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§ 387.411

49 CFR Ch. III (10–1–04 Edition)

will make the designation of process
agent prescribed in paragraph (b) of
this section.
[56 FR 28111, June 19, 1991]

§ 387.411 Qualifications as a self-insurer and other securities or agreements.
(a) Self-insurer. The FMCSA will approve the application of a freight
fowarder to qualify as a self-insurer if
it is able to meet its obligations for
bodily-injury, property-damage, and
cargo liability without adversely affecting its business.
(b) Other securities and agreements.
The FMCSA will grant applications for
approval of other securities and agreements if the public will be protected as
contemplated by 49 U.S.C. 13906(c).
[55 FR 11201, Mar. 27, 1990. Redesignated at 61
FR 54710, Oct. 21, 1996, as amended at 62 FR
49942, Sept. 24, 1997]

§ 387.413 Forms and procedure.
(a) Forms. Endorsements for policies
of insurance, surety bonds, certificates
of insurance, applications to qualify as
a self-insurer or for approval of other
securities or agreements, and notices
of cancellation must be in the form
prescribed at 49 CFR part 387, subpart
C.
(b) Procedure. Certificates of insurance, surety bonds, and notices of cancellation must be filed with the
FMCSA in triplicate.
(c) Names. Certificates of insurance
and surety bonds shall be issued in the
full name (including any trade name)
of the individual, partnership (all partners named), corporation, or other person holding or to be issued the permit.
(d) Cancellation. Except as provided in
paragraph (e) of this section, certificates of insurance, surety bonds, and
other securities and agreements shall
not be cancelled or withdrawn until 30
days after the FMCSA receives written
notice from the insurance company,
surety, freight forwarder, or other
party, as the case may be.
(e) Termination by replacement. Certificates of insurance or surety bonds
may be replaced by other certificates
of insurance, surety bonds, or other security, and the liability of the retiring
insurer or surety shall be considered as
having terminated as of the replace-

ment’s effective date, if acceptable to
the FMCSA.
[55 FR 11201, Mar. 27, 1990. Redesignated at 61
FR 54710, Oct. 21, 1996, as amended at 62 FR
49942, Sept. 24, 1997]

§ 387.415 Acceptance
by the FMCSA.

and

revocation

The FMCSA may at any time refuse
to accept or may revoke its acceptance
of any surety bond, certificate of insurance, qualifications as a self-insurer, or
other security or agreement that does
not comply with these rules or fails to
provide adequate public protection.
§ 387.417

Fiduciaries.

(a) Interpretations. The terms ‘‘insured’’ and ‘‘principal’’ as used in a certificate of insurance, surety bond, and
notice of cancellation, filed by or for a
freight forwarder, include the freight
forwarder and its fiduciary (as defined
at 49 CFR 387.319(a)) as of the moment
of succession.
(b) Span of security coverage. The coverage furnished for a fiduciary shall
not apply after the effective date of
other insurance or security, filed with
and accepted by the FMCSA for such fiduciary. After the coverage shall have
been in effect 30 days, it may be cancelled or withdrawn within the succeeding 30 days by the insurer, the insured, the surety, or the principal 10
days after the FMCSA receives written
notice. After such coverage has been in
effect 60 days, it may be cancelled or
withdrawn only in accordance with
§ 387.413(d).
[55 FR 11201, Mar. 27, 1990. Redesignated at 61
FR 54710, Oct. 21, 1996, as amended at 62 FR
49942, Sept. 24, 1997]

§ 387.419 Electronic filing of surety
bonds, certificates of insurance and
cancellations.
Insurers may, at their option and in
accordance with the requirements and
procedures set forth at 49 CFR 387.323,
file certificates of insurance, surety
bonds, and other securities and agreements electronically.
[60 FR 16811, Apr. 3, 1995, as amended at 62
FR 49942, Sept. 24, 1997]

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