Attachment C - 49 CFR 387

Title 49: Transportation
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PART 387—MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR
CARRIERS

Section Contents

Subpart A—Motor Carriers of Property
§ 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
§ 387.27
§ 387.29
§ 387.31
§ 387.33
§ 387.35
§ 387.37
§ 387.39
§ 387.41

Purpose and scope.
Applicability.
Definitions.
Financial responsibility required.
Financial responsibility, minimum levels.
State authority and designation of agent.
Fiduciaries.
Forms.
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.
§ 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
§ 387.405
§ 387.407
§ 387.409
§ 387.411
§ 387.413
§ 387.415
§ 387.417
§ 387.419

General requirements.
Limits of liability.
Surety bonds and certificates of insurance.
Insurance and surety companies.
Qualifications as a self-insurer and other securities or agreements.
Forms and procedure.
Acceptance and revocation by the FMCSA.
Fiduciaries.
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]

§ 387.3 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 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 responsibility required.

(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 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 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
Jan. 1, 1985
--------------------------------------------------------------------------------------------------------------(1) For-hire (In interstate or foreign
Property
(nonhazardous).........................
$750,000
commerce, with a gross vehicle weight rating
of 10,001 or more pounds).
(2) For-hire and Private (In interstate,
Hazardous substances,
as defined in 49 CFR
5,000,000
foreign, or intrastate commerce, with a gross
171.8, transported in
cargo tanks, portable
vehicle weight rating of 10,001 or more
tanks, or hopper-type
vehicles with capacities
pounds).
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.
(3) For-hire and Private (In interstate or
Oil listed in 49 CFR
172.101; hazardous waste,
1,000,000
foreign commerce, in any quantity; or in
hazardous materials,
and hazardous substances
intrastate commerce, in bulk only; with a
defined in 49 CFR
171.8 and listed in 49 CFR
gross vehicle weight rating of 10,001 or more
172.101, but not
mentioned in (2) above or (4)
pounds).
below.
(4) For-hire and Private (In interstate or
Any quantity of
Division 1.1, 1.2, or 1.3
5,000,000
foreign commerce, with a gross vehicle weight
material; any quantity
of a Division 2.3,
rating of less than 10,000 pounds).
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.
---------------------------------------------------------------------------------------------------------------

[59 FR 63923, Dec. 12, 1994, as amended at 67 FR 61821, Oct. 2, 2002]
§ 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____________________
of____________________
Dated at____________________
this _______ day of __________, 19__

Amending Policy No.____________________
Effective Date____________________
Name of Insurance Company____________________
Countersigned by____________________
Authorized Company Representative
The policy to which this endorsement is attached provides primary or excess insurance, as indicated by
“ X” , for the limits shown:
 This insurance is primary and the company shall not be liable for amounts in excess of $_____ for each
accident.
 This insurance is excess and the company shall not be liable for amounts in excess of $_____ for each
accident in excess of the underlying limit of $_____ 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:
______
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.
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 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
Motor carrier
Surety company and
principal, FMCSA Docket
Parties
principal place

principal place of
business address

of business
.......................
.......................
.......................
.......................

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

No. and

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 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 $_____, 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:
______
This bond is effective from ___ (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____________________
Surety____________________
City____________________
State____________________
By____________________
Acknowledgement of Surety
State of____________________
County of____________________
On this ______ day of ________, 19__, before me personally came ___________, who, being by me duly
sworn, did depose and say that he/she resides in __________; that he/she is the _________ of the
__________, 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)
____________________
Title of official administering oath____________________
Surety Company File No.____________________

[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 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—
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 multipurpose 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 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.
----------------------------------------------------------------------Effective dates
---------------------Vehicle seating capacity
Nov. 19,
Nov. 19,
1983
1985
----------------------------------------------------------------------(1) Any vehicle with a seating capacity of 16
$2,500,000
$5,000,000

passengers or more.............................
(2) Any vehicle with a seating capacity of 15
750,000
1,500,000
passengers or less \1\.........................
----------------------------------------------------------------------\1\ Except as provided in § 387.27(b).
----------------------------------------------------------------------Transportation
Minimum
Kind of equipment
provided
limits
----------------------------------------------------------------------Fleet including only vehicles under
Commodities not
$300,000
10,000 pounds GVWR.
subject to §
387.303(b)(2).
-----------------------------------------------------------------------

(ii) Passenger carriers
Kind of Equipment
----------------------------------------------------------------------Effective dates
-----------------------Vehicle seating capacity
Nov. 19,
Nov. 19,
1983
1985
----------------------------------------------------------------------(1) Any vehicle with a seating capacity of 16
$2,500,000
$5,000,000
passengers or more...........................
(2) Any vehicle with a seating capacity of 15
750,000
1,500,000
passengers or less...........................
-----------------------------------------------------------------------

(2) Motor carriers subject to §387.301(a)(2) are required to have security for the required
minimum limits as follows:
--------------------------------------------------------------------------------------------------------------July 1,

July 1,
Kind of equipment
Commodity
transported
1983*
1984*
---------------------------------------------------------------------------------------------------------------

(a) Freight Vehicles of 10,001 Pounds or
hazardous)....................
$500,000
More GVWR.
(b) Freight Vehicles of 10,001 Pounds or
defined in §
1,000,000
5,000,000
More GVWR.
cargo tanks, portable

Property (non$750,000
Hazardous substances, as
171.8, transported in
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 §
(c) Freight Vehicles of 10,001 Pounds or
hazardous
500,000
1,000,000
More GVWR.
and hazardous

173.455.
Oil listed in § 172.101;
waste, hazardous materials
substances defined in §

171.8 and
listed in § 172.101, but
not mentioned
(d) Freight Vehicles Under 10,001 Pounds
B explosives; any
1,000,000
5,000,000
GVWR.
(Poison A); or

in (b) above or (d) below.
Any quantity of Class A or
quantity of poison gas
highway route controlled

quantity
radioactive materials as
defined in §
173.455.
--------------------------------------------------------------------------------------------------------------*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 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.
(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 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 self-insurance 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 well as amount of the maximum limits of
coverage.
*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.

(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 shown thereon or
appended thereto, and Form BMC 91X certificate is required of each insurer.
**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.

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, 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 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.
[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]
§ 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 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 selfinsurer, 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.
[47 FR 55945, Dec. 14, 1982, as amended at 62 FR 49942, Sept. 24, 1997]
§ 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 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://fhwa-li.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
---------------------------------------------------------------------------------------------------------------

Required
F=filing

Field name
Start

Number of positions

Description

End

C=cancel B=both
field
field
--------------------------------------------------------------------------------------------------------------Record type..................... 1 Numeric.......... 1=Filing
B
1
1
2=Cancellation.....
Insurer number..................
B
2

8 Text.............
9

FMCSA Assigned
Insurer Number
(Home Office)

With

Filing type.....................
B
10

1 Numeric..........
10

Suffix (Issuing
Office), If
Different, e.g.
12345-01.
1 = BI&PD
2 =

Cargo..........
3 =
Bond...........
4 = Trust
Fund.....
FMCSA docket number.............
MC
B
11
Insured legal name..............
Name......... B
Insured d/b/a name..............
As
B
139

8 Text.............
18
120 Text...........
19
138
60 Text............
198

FMCSA Assigned
or FF Number,
e.g., MC000045.
Legal
Doing Business
Name If

Different
From Legal
Name.
Insured address................. 35 Text............
B
199
233

Either street or

mailing
address.
Insured city.................... 30 Text............
................... B
234
263
Insured state................... 2 Text.............
................... B
264
265
Insured zip code................ 9 Numeric
(Do not include
B
266
274
dash if using 9
digit code).
Insured country................. 2 Text............. (Will default to
B
275
276
US).

Form code....................... 10 Text............
B
277
286
Full, primary or excess coverage
E
F
287

1 Text.............
287

BMC-91, BMC-91X,
BMC-34, BMC-35,
etc.
If BMC-91X, P or
= indicator of
primary or

excess
policy; 1 =
Full
under §
387.303(b)(1);
2 =
Limit of liability.............. 5 Numeric..........
Thousands..... F
288
292
Underlying limit of liability... 5 Numeric..........
F
293
297

Full under §
387.303(b)(2).
$ in
$ in Thousands
(will default

to
$000 if
Primary).
Effective date..................
for B
298

8 Text.............
305

Policy number................... 25 Text............
B
306
330

MM/DD/YY Format
both Filing or
Cancellation.
Surety companies

may enter bond
number.
---------------------------------------------------------------------------------------------------------------

(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]
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 (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,
maintenance, 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 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 replacement'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 and revocation by the FMCSA.

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]