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[Federal Register: October 5, 2005 (Volume 70, Number 192)]
[Rules and Regulations]
[Page 58065-58066]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05oc05-18] =============================================================
----------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Federal Motor Carrier Safety Administration 49 CFR Part 387 [Docket No. FMCSA-2005-22470] Regulatory Guidance for Forms Used To Establish Minimum Levels of
Financial Responsibility of Motor Carriers AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT. ACTION: Regulatory guidance. ----------------------------------------------------------------------- SUMMARY: This document presents interpretive guidance material for the
Federal Motor Carrier Safety Regulations (FMCSRs). FMCSA issues new
regulatory guidance for Forms MCS-90, MCS-90B, MCS-82, and MCS-82B used
to establish minimum levels of financial responsibility of motor
carriers. The questions and answers are applicable to motor carrier
operations on a national basis. This guidance will provide the motor
carrier and financial services industries and Federal, State, and local
law enforcement officials with a clearer understanding of the
applicability in particular situations of Forms MCS-90, MCS-90B, MCS-
82, and MCS-82B contained in the FMCSRs. EFFECTIVE DATE: October 5, 2005. FOR FURTHER INFORMATION CONTACT: Ms. Joy Dunlap, Chief, Commercial
Enforcement Division, Office of Enforcement and Compliance (MC-ECC),
Federal Motor Carrier Safety Administration, 400 Seventh Street. SW.,
Washington, DC 20590. Phone 202-385-2400. Office hours are from 7:45
a.m. to 4:15 p.m., e.t., Monday through Friday, except Federal legal
holidays. SUPPLEMENTARY INFORMATION: Basis for the Notice FMCSA received a petition for rulemaking from several insurance
companies and the American Insurance Association to amend Form MCS-90,
Endorsement for Motor Carrier Policies [[Page 58066]] of Insurance for Public Liability, to incorporate several changes, most
of which were suggested to clarify the meaning of Form MCS-90. The
Trucking Industry Defense Association (TIDA) filed a brief in support
of the petition. A copy of the petition, amendments to the petition and
the TIDA brief are in the docket identified in the heading of this
document. The petitioners contended changes were necessary in light of
Federal and State court decisions \1\ that they claimed misconstrued
Form MCS-90 to require insurance companies to pay damages for negligent
operation of a vehicle owned by the insured motor carrier but not
covered by its insurance policy, even when no judgment had been
obtained against the insured motor carrier. The Petitioners' primary
concern was to have the agency clarify that the word "insured" in the
Form MCS-90 means "named insured."
--------------------------------------------------------------------------- \1\ John Deere Insurance Co. v. Nueva, 229 F.3d 853 (9th Cir.
2000); Lynch v. Yob, 95 Ohio St. 3d 441, 768 NE. 2d 1158 (2002);
Pierre v. Providence Wash. Ins. Co., 286 A.D.2d 139, 730 N.Y.S.2d
550 (2001); and Madere v. National Union Fire Ins. Co. of
Pittsburgh, 2000 U.S. Dist. LEXIS 15994 (E.D. La. 2000).
--------------------------------------------------------------------------- FMCSA has denied the petition for rulemaking. However, the agency
stated petitioners' concerns could be adequately addressed without
rulemaking through formal agency guidance to be published in the
Federal Register. A copy of the letter denying the petition is in the
docket identified in the heading of this document. FMCSA Authorities Over Motor Carrier Financial Responsibility
Requirements Section 30 of the Motor Carrier Act of 1980 (Pub. L. 96-296, July
1, 1980, 94 Stat. 793, at 820), codified at 49 U.S.C. 31139,
established minimum levels of financial responsibility for for-hire
motor carriers of property involved in interstate or foreign
transportation and for the transportation of hazardous materials in
intrastate and interstate commerce. Section 18 of the Bus Regulatory Reform Act of 1982 (Pub. L. 97-
261, September 20, 1982, 96 Stat. 1102), codified at 49 U.S.C. 31138,
established minimum levels of financial responsibility covering public
liability and property damage for the transportation of passengers by
for-hire motor carriers in interstate or foreign commerce. The financial responsibility provisions of the Motor Carrier Act of
1980 and the Bus Regulatory Reform Act of 1982 were intended to create
incentives for the motor carrier industry to focus on the safety
aspects of highway transportation and to assure the general public that
a motor carrier maintains an adequate level of financial responsibility
sufficient to satisfy claims covering public liability, property damage
liability and, in the case of transporters of hazardous materials,
environmental restoration liability. The Administrator of FMCSA has been delegated authority, under 49
CFR 1.73(f), to carry out the functions vested in the Secretary of
Transportation relating to financial responsibility requirements for
motor carriers, brokers and freight forwarders. Such functions include
issuing regulations implementing 49 U.S.C. 31138 and 31139 and
providing guidance regarding statutory or regulatory requirements. This document provides regulatory guidance to the petitioners and
the public with respect to the proper interpretation of Form MCS-90.
FMCSA is including Forms MCS-90B, MCS-82, and MCS-82B in this
regulatory guidance as well, because the same issue may arise with
respect to these forms. Forms MCS-90, MCS-90B, MCS-82, and MCS-82B are
not intended, and do not purport, to require insurance companies or
sureties to satisfy a judgment against any party other than the motor
carrier named in the endorsement or its fiduciary. Members of the motor carrier industry and other interested parties
may also access the guidance in this document through the FMCSA's
Internet site at http://www.fmcsa.dot.gov. Specific questions addressing any of the interpretive material
published in this document should be directed to the contact person
listed earlier under FOR FURTHER INFORMATION CONTACT, or the FMCSA
Division Office in each State. Regulatory Guidance PART 387--MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR CARRIERS Sections Interpreted Section 387.15 Forms Question: Does the term "insured," as used on Form MCS-90,
Endorsement for Motor Carrier Policies of Insurance for Public
Liability, or "Principal", as used on Form MCS-82, Motor Carrier
Liability Surety Bond, mean the motor carrier named in the endorsement
or surety bond? Guidance: Yes. Under 49 CFR 387.5, "insured and principal" is
defined as "the motor carrier named in the policy of insurance, surety
bond, endorsement, or notice of cancellation, and also the fiduciary of
such motor carrier." Form MCS-90 and Form MCS-82 are not intended, and
do not purport, to require a motor carrier's insurer or surety to
satisfy a judgment against any party other than the carrier named in
the endorsement or surety bond or its fiduciary. Section 387.39 Forms Question: Does the term "insured," as used on Form MCS-90B,
Endorsement for Motor Carrier Policies of Insurance for Public
Liability, or "Principal", as used on Form MCS-82B, Motor Carrier
Public Liability Surety Bond, mean the motor carrier named in the
endorsement or surety bond? Guidance: Yes. Under 49 CFR 387.29, "insured and principal" is
defined as "the motor carrier named in the policy of insurance, surety
bond, endorsement, or notice of cancellation, and also the fiduciary of
such motor carrier." Form MCS-90B and Form MCS-82B are not intended,
and do not purport, to require a motor carrier's insurer or surety to
satisfy a judgment against any party other than the carrier named in
the endorsement or surety bond or its fiduciary. Issued on: September 28, 2005.
Annette M. Sandberg,
Administrator.
[FR Doc. 05-19946 Filed 10-4-05; 8:45 am] BILLING CODE 4910-EX-P
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