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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 - PowerPoint PPT Presentation
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Financial Responsibility
Reference
PART 387 MINIMUM LEVELS OF
FINANCIAL RESPONSIBILITY FOR
MOTOR CARRIERS
Overview
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.
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
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
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
Examples of Proof
• A written decision, order, or authorization of the Federal Motor Carrier Safety Administration authorizing a motor carrier to self-insure
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:
State Authority
• 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
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
Basis for Penalty
• 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
Part 387-Subpart C
• 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.