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1.
FMCSA Regulations on Financial Responsibility
Slide 2.
Reference
PART 387 MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR CARRIERS
Slide 3.
Overview
This training
module is designed to educate the executive staff of motor carrier
companies on the FMCSA regulations on the minimum levels of necessary
financial responsibility.
Slide 4.
Purpose
The purpose of these regulations is to create incentives for motor
carriers to maintain and
operate their vehicles in a safe manner and to maintain an appropriate
level of financial
responsibility.
Slide 5.
Applicability
- Motor carriers
operating motor vehicles transporting hazardous materials, hazardous
substances or hazardous wastes
- For-hire
motor carriers operating motor vehicles transporting property
in interstate or foreign commerce
- For-Hire
motor carriers transporting passengers in interstate or foreign
commerce
- Private motor
carriers domiciled in Mexico transporting property in interstate
or foreign commerce
Slide 6.
Financial Responsibility
Having insurance policies or surety bonds sufficient to satisfy
the minimum public liability requirements.
Slide 7.
Public Liability
Public liability
means liability for bodily injury, property damage and environmental
restoration.
Slide 8.
Environmental Restoration
Environmental
restoration means restitution for the loss, damage, or destruction
of
natural resources arising out of an accidental discharge of toxic
or other environmentally harmful materials or liquids.
Slide 9.
Definitions
Definitions of terms relating to FMCSA Financial Responsibility
regulations can be
seen at:
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.5.htm
and/or
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.29.htm
Slide 10.
Requirements
Motor carriers must have at least the minimum amount of insurance
required by
law. A list of the minimum requirements can be seen at:
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.9.htm
and/or
http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.33.htm
Slide 11.
Proof
- Proof of
financial responsibility shall be maintained at the motor carrier's
principal place of business
- All vehicles
operating in the U.S. must have a legible copy of the proof
of the required financial responsibility
- Any motor
vehicle in which there is no evidence of financial responsibility
shall be denied entry into the U.S.
Slide 12.
Examples of Proof
Slide 13.
Examples of Proof
A written decision, order, or authorization of the Federal Motor
Carrier Safety Administration authorizing a motor carrier to self-insure
Slide 14.
State Authority
An insurance
policy or surety bond does not satisfy the financial responsibility
requirements unless the insurer or surety furnishing the policy
or bond is legally authorized to issue such policies or bonds in:
Slide 15.
State Authority
- Each State
in which the motor carrier operates
- The State
in which the motor carrier has its principal place of business
- Any State
of the United States and eligible as an excess or surplus lines
insurer in any State in which business is written
Slide 16.
Violation and Penalty
- Any person
who knowingly violates the rules shall be liable to the U.S. for
a civil penalty of no more than $11,000 per violation
- If any violation
is a continuing one, each day will constitute a separate offense
Slide 17.
Basis for Penalty
- Nature
- Circumstances
- Extent
- Degree of
culpability
- History of
prior offenses
- Ability to
pay
- Effect on
ability to do business
- Such other
matters as justice may require
Slide 18.
Part 387-Subpart
C
- For-Hire
motor carriers subject to the registration requirements (Subtitle
IV ,part B, chapter 135 of Title 49 of the United States Code)
must file:
- Surety
bonds
- Certificates
of Insurance
- Proof
of Qualification of self-insurer, or
- Other
securities or agreements in the amounts provided by part 387.303
Slide 19.
Part 387-Subpart
C
- The Licensing and
Insurance database (http://li-public.fmcsa.dot.gov) provides information
about the status of motor carrier filings of minimum levels of
insurance.
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