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Financial Responsibility. PART 387 MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR CARRIERS. Reference. This training module is designed to educate the executive staff of motor carrier companies on the FMCSA regulations on the minimum levels of necessary financial
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PART 387 MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR CARRIERS Reference
This training module is designed to educate the executive staff of motor carrier companies on the FMCSA regulations on the minimum levels of necessary financial responsibility. Overview
Purpose The purpose of these regulations is to create incentives for motor carriers to maintain and operate their vehicles in a safe manner and to maintain an appropriate level of financial responsibility.
Applicability • Motor carriers operating motor vehicles transporting hazardous materials, hazardous substances or hazardous wastes • For-hire motor carriers operating motor vehicles transporting property in interstate or foreign commerce • For-Hire motor carriers transporting passengers in interstate or foreign commerce • Private motor carriers domiciled in Mexico transporting property in interstate or foreign commerce
Financial Responsibility Having insurance policies or surety bonds sufficient to satisfy the minimum public liability requirements.
Public Liability Public liability means liability for bodily injury, property damage and environmental restoration.
Environmental restoration means restitution for the loss, damage, or destruction of natural resources arising out of an accidental discharge of toxic or other environmentally harmful materials or liquids Environmental Restoration
Definitions Definitions of terms relating to FMCSA financial responsibility regulations can be seen at: http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.5.htm and/or http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.29.htm
Requirements Motor carriers must have at least the minimum amount of insurance required by law. A list of the minimum requirements can be seen at: http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.9.htm and/or http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.33.htm
Proof • Proof of financial responsibility shall be maintained at the motor carrier’s principal place of business • All vehicles operating in the U.S. must have a legible copy of the proof of the required financial responsibility • Any motor vehicle in which there is no evidence of financial responsibility shall be denied entry into the U.S.
Examples of Proof • Form MCS-90 • Form MCS-82 • Form MCS-90B • Form MCS-82B • To view the forms online, please visit: http://www.fmcsa.dot.gov./factsfigs/eta/120xdt/Part_387supportfiles/Part_387.pdf
A written decision, order, or authorization of the Federal Motor Carrier Safety Administration authorizing a motor carrier to self-insure Examples of Proof
State Authority An insurance policy or surety bond does not satisfy the financial responsibility requirements unless the insurer or surety furnishing the policy or bond is legally authorized to issue such policies or bonds in:
Each State in which the motor carrier operates The State in which the motor carrier has its principal place of business Any State of the United States and eligible as an excess or surplus lines insurer in any State in which business is written State Authority
Violation and Penalty • Any person who knowingly violates the rules shall be liable to the U.S. for a civil penalty of no more than $11,000 per violation • If any violation is a continuing one, each day will constitute a separate offense
Nature Circumstances Extent Gravity of violation Degree of culpability History of prior offenses Ability to pay Effect on ability to do business Such other matters as justice may require Basis for Penalty
For-Hire motor carriers subject to the registration requirements (Subtitle IV ,part B, chapter 135 of Title 49 of the United States Code) must file: Surety bonds Certificates of Insurance Proof of Qualification of self-insurer, or Other securities or agreements in the amounts provided by part 387.303 Part 387-Subpart C
The Licensing and Insurance database (http://li-public.fmcsa.dot.gov) provides information about the status of motor carrier filings of minimum levels of insurance. Part 387-Subpart C