§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.
(b)(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.
(b)(2) Exception. Policies of insurance and surety bonds may be
obtained for a finite period of time to cover any lapse in continuous
compliance.
(b)(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:
(b)(3)(i)
The required insurance endorsement (Form MCS-90B); and
(b)(3)(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 —
(d)(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
(d)(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
[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].