ÿWPCC ûÿ2BÿÿVPÿÿZ¦ÿÿ#|x10cpiðÿÿ‰?xxx,Ûwôxþ6X@É“8Ç;X@þþþþþþþÿþÿÿÿþÿÿþÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿHP LaserJet IIIHPLASIII.PRSÛx Œ @ɇÏ,\,ðÛbˆX@#|xûÿ2#: Z]X·ÿÿJCourier 10cpiCourier 10cpi (Bold)HP LaserJet IIIHPLASIII.PRSÛx Œ @ɇÏ,\,ðÛbˆX@ðÿÿ‰?xxx,Èôxþ6X@É“8Ç;X@þþþþþþþÿþÿÿÿÿÿþÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ¢ÿÿ‰?xxx,äÈôxÐ `É•BÇ;X€þþþþþþþÿÿÿÿÿÿÿÿþÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿi (Bold)Courier 10cpi (Italic)Courier 12cpi (Bold)Courier 12cpi (Italic)Courieÿÿÿÿcpi (Legal)Courier 10cpi (Bold) (Legal)Courier 10cpi (Italic) (Legal)Courier 12ûÿ2AÔ ‰? Ôà ÃÄ ÄÁà4ìÁTITLE 49, CODE OF FEDERAL REGULATIONS, CHAPTER IIIƒ Áàxì!Á(Oct. 1993 edition)ƒ 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. Authority: 49 U.S.C. 10927 note; 49 CFR 1.48. Subpart A -- Motor Carriers of Property ÀÀ 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] ÀÀ 387.3 Applicability. (a) This subpart applies to for-hire motor carriers operating motor vehicles transporting property in interstate orÔh)0*0*0*°°Ô 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 Class A or Class B explosives, any quantity of poison gas, or highway route controlled quantity of radioactive materials, as defined in 49 CFR 173.403, in interstate or foreign commerce. (2) The rules in this part do not apply to the transportation of nonbulk oil, nonbulk hazardous materials, substances, or wastes in intrastate commerce except highway route controlled quantity radioactive materials, as defined in 49 CFR 173.403. [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] ÀÀ 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.,Ôh)0*0*0*°°Ô insurance policies or surety bonds) sufficient to satisfy liability amounts set forth in this subpart covering public liability. For-hire carriage transportation of property by motor vehicle except when -- (1) The property is transported by a person engaged in a business other than transportation; and (2) The transportation is within the scope of, and furthers a primary business (other than transportation) of, the person. In bulk the transportation, as cargo, of property, except Class A and B explosives and poison gases, in containment systems with capacities in excess of 3,500 water gallons. In bulk (Class A and B explosives) -- the transportation, as cargo, of any Class A or B explosive(s) in any quantity. In bulk (poison gas) -- the transportation, as cargo, of any poison gas 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 a common, contract, or private carrier of property by motor vehicle. 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. [46 FR 30982, June 11, 1981; 46 FR 45612, Sept. 14, 1981; 47 FR 12801, Mar. 25, 1982; 48 FR 52683, Nov. 21, 1983; 51 FR 33856, Sept. 23, 1986; 53 FR 12160, Apr. 13, 1988] ÀÀ 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 ÀÀ 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 theÔh)0*0*0*°°Ô 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 ÀÀ 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 theÔh)0*0*0*°°Ô Interstate Commerce Commission authorizing the motor carrier to self-insure under ÀÀ 1043.5 of this title, provided the motor carrier maintains a satisfactory safety rating as determined by the Bureau of Motor Carrier Safety under part 385 of this title. (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 (Forms 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] ÀÀ 387.9 Financial responsibility, minimum levels. The minimum levels of financial responsibility referred to in (TABLE START) ÀÀ 387.7 of this subpart are hereby prescribed as follows: Schedule of Limits [Public Liability] @h1Type of carriage\1\ @h1Commodity transported @h1July 1, 1981 @h1January 1, 1985 (1) For-hire (in interstate or foreign commerce) ....... Property (nonhazardous) ....... $500,00 ....... $750,000 (2) For-hire and private (in interstate, foreign, or intrastate commerce) ....... 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 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 49 CFR 173.403 ....... 1,000,000 ....... 5,000,000 Ôh)0*0*0*°°ÔŒ(3) For-hire and private (in interstate or foreign commerce: in any quantity) or (In intrastate commerce: in bulk only) ....... 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 ....... 500,000 ....... 1,000,000 (4) For-hire and private (In interstate or foreign commerce) ....... 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 49 CFR 173.403 ....... 1,000,000 ....... 5,000,000 Footnote: \1\The type of carriage listed under numbers (1), (2), and (3) apply to vehicles with a gross vehicle weight rating of 10,000 pounds or more. The type of carriage listed under number (4) applies to all vehicles with a gross vehicle weight rating of less than 10,000 pounds. (TABLE END) [48 FR 5560, Feb. 7, 1983, as amended at 48 FR 29699, June 28, 1983; 48 FR 52683, Nov. 21, 1983; 49 FR 27272, July 2, 1984; 49 FR 38290, Sept. 28, 1984] ÀÀ 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,Ôh)0*0*0*°°Ô 1983] ÀÀ 387.13 Fiduciaries. The coverage of fiduciaries shall attach at the moment of succession of such fiduciaries. [46 FR 30982, June 11, 1981] ÀÀ 387.15 Forms. Endorsements for policies of insurance (Illustration I) and surety bonds (Illustration II) must be in the form prescribed by the FHWA 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 ÀÀ 387.7 of this subpart. The continuous coverage requirement does not apply to Mexican motor carriers insured under ÀÀ 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 Ôh)0*0*0*°°ÔŒThe policy to which this endorsement is attached provides primary or excess insurance, as indicated by ``X'', for the limits shown: À À This insurance is primary and the company shall not be liable for amounts in excess of $ -- -- -- -- -- for each accident. À À 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 Bureau or the ICC the company agrees to furnish the Bureau or the ICC a duplicate of said policy and all its endorsements. The company also agrees, upon telephone request by an authorized representative of the Bureau or the ICC, 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 ICC's jurisdiction, by providing thirty (30) days notice to the ICC (said 30 days notice to commence from the date the notice is received by the ICC 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, propertyÔh)0*0*0*°°Ô 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 Highway Administration's Bureau of Motor Carrier Safety (Bureau) and the Interstate Commerce Commission (ICC). 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. The Motor Carrier Act of 1980 requires limits of financial responsibility according to type of carriage and commodity transported by the motor carrier. It is the MOTOR CARRIER'SÔh) 0*0*0*°°Ô obligation to obtain the required limits of financial responsibility. THE SCHEDULE OF LIMITS SHOWN ON THE REVERSE SIDE DOES NOT PROVIDE COVERAGE. The limits shown in the schedule are for information purposes (TABLE START)only. Schedule of Limits [Public Liability] @h1Type of carriage\1\ @h1Commodity transported @h1July 1, 1981 @h1January 1, 1985 (1) For-hire (in interstate or foreign commerce) ....... Property (nonhazardous) ....... $500,000 ....... $750,000 (2) For-hire and private (in interstate, foreign, or intrastate commerce) ....... 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 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 49 CFR 173.403 ....... 1,000,000 ....... 5,000,000 (3) For-hire and private (In interstate or foreign commerce: in any quantity) or (In intrastate commerce: in bulk only) ....... 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 ....... 500,000 ....... 1,000,000 (4) For-hire and private (In interstate or foreign commerce) ....... 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 49 CFR 173.403 ....... 1,000,000 ....... 5,000,000 Footnote: \1\The type of carriage listed under numbers (1), (2), and (3) apply to vehicles with a gross vehicle weight rating of 10,000 pounds or more. The type of carriage listed under number (4) applies to all vehicles with a gross vehicle weight rating of less than 10,000 pounds. Footnote: Note: This table showing the schedule of limits may appear at the bottom or on the reverse side of Form MCS - 90. (TABLE END)Ôh) 0*0*0*°°ÔŒ™ Illustration II Form MCS - 82 (4/83) (Form approved by Office of Management and Budget under control no. 2125 - (TABLE START)0075) Motor Carrier Public Liability Surety Bond Under Sections 29 and 30 of the Motor Carrier Act of 1980 @h1Parties @h1Surety company and principal place of business address @h1Motor carrier principal, ICC Docket No. and principal place of business @h1 ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... (TABLE END) 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. 10927 note). (2) Rules and regulations of the Federal Highway Administration's Bureau of Motor Carrier Safety (Bureau). (3) Rules and regulations of the Interstate Commerce Commission (ICC). 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 theÔh) 0*0*0*°°Ô 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 Bureau or the ICC, to verify that the surety bond is in force as of a particular date. The telephone number to call 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 ICC's jurisdiction, by providing thirty (30) days notice to the ICC (said 30 days notice to commence from the date notice is received by the ICC 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 Ôh) 0*0*0*°°ÔŒ™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 resides in -- -- -- -- -- ; that he is the -- -- -- -- -- of the -- -- -- -- -- , the corporation described in and which executed the foregoing instrument; that he 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 signed his name thereto by like order, and he duly acknowledged to me that he 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] ÀÀ 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 $10,000 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 Director, Bureau of Motor Carrier Safety, by written notice. In determining the amount of such penalty, the Director 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. [46 FR 30982, June 11, 1981, as amended at 48 FR 52683, Nov. 21,Ôh) 0*0*0*°°Ô 1983] Subpart B -- Motor Carriers of Passengers Source: 48 FR 52683, Nov. 21, 1983, unless otherwise noted. ÀÀ 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. ÀÀ 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; and (3) A motor vehicle carrying less than 16 individuals in a single daily round trip to commute to and from work. ÀÀ 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.Ôh)0*0*0*°°ÔŒ™ For hire carriage transportation performed by a motor carrier. 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 motor common carrier and a motor contract carrier. Motor common carrier Means a person holding itself out to the general public to provide motor vehicle transportation of passengers for compensation over regular or irregular routes. Motor contract carrier means a person, other than a motor common carrier, providing motor vehicle transportation of passengers for compensation under continuing agreement with a person or limited number of persons. 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 less than three designated seating positions, unless the seat design or vehicle design is such that the center position cannot be used for seating. ÀÀ 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 ÀÀ 387.33 of this subpart. (b) Policies of insurance, surety bonds, and endorsements required under this section shall remain in effect continuously until terminated. Ôh)0*0*0*°°ÔŒ™ (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 ÀÀ 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 Certificate of Registration; (ii) The required insurance endorsement (Form MCS - 90B); 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. 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. Ôh)0*0*0*°°ÔŒ (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] ÀÀ 387.33 Financial responsibility, minimum levels. The minimum levels of financial responsibility referred to in ÀÀ 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 (TABLE START)commerce. @h1Vehicle seating capacity @h1Effective dates@h2Nov. 19, 1983@h2Nov. 19, 1985 (1) Any vehicle with a seating capacity of 16 passengers or more ....... $2,500,000 ....... $5,000,000 (2) Any vehicle with a seating capacity of 15 passengers or less\1\ ....... 750,000 ....... 1,500,000 Footnote: \1\Except as provided in ÀÀ 387.27(b). (TABLE END) ÀÀ 387.35 State authority and designation of agent. Ôh)0*0*0*°°ÔŒ 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.. ÀÀ 387.37 Fiduciaries. The coverage of fiduciaries shall attach at the moment of succession of such fiduciaries. ÀÀ 387.39 Forms. Endorsements for policies of insurance (Illustration I) and surety bonds (Illustration II) must be in the form prescribed by the FHWA 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 ÀÀ 387.31 of this subpart. The continuous coverage requirement does not apply to Mexican motor carriers insured under ÀÀ 387.31(b)(3) of this subpart. The endorsement and surety bond shall be issued in the exact name of the motor carrier. Insert ILLUS. 0616 Insert ILLUS. 0617 (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]Ôh)0*0*0*°°ÔŒ™ ÀÀ 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 $10,000 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 Associate Administrator for Motor Carriers or his designee, by written notice. In determining the amount of such penalty, the Associate Administrator or his 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]