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Qualifications of Motor Carriers to Self-Insure Their Operations and Fees to Support the Approval and Compliance Process

Notice of proposed rulemaking (NPRM); request for comments.
This document proposes to identify circumstances in which the public is subjected to an unacceptable level of risk of uncompensated losses generated from bodily injury and property damage (BI&PD) claims arising from the actions of for-hire motor carriers conducting self- insured operations in interstate or foreign commerce. More specifically, the FHWA seeks public comment on a proposal to reevaluate the security and collateral requirements of any self-insured carrier that fails to generate from operations, after payment of all expenses except annual self-insurance claims expenses, twice the level of cash needed to pay the self-insurance claims. The FHWA also proposes to assess an additional application fee to cover carrier requests for modifications and alterations to self-insurance authorizations which require a reevaluation of the carrier's financial condition. The FHWA can now do the basic first-time self-insurance application for $3,000. This amount is $1,200 less than the $4,200 fee the FHWA currently charges. Thus, the agency is also proposing to reduce the fee for processing the initial application to $3,000 for an economic cost savings. The proposed actions will not apply to carriers authorized to self-insure cargo-only claims. The requirements for cargo-only self- insurance are not substantial because the required cargo coverage is relatively small. Consequently, the expenses for reviewing cargo-only applications are not significant. Further, the risk of an unacceptable level of uncompensated self-insurance cargo claims is low. Finally, this NPRM would also propose implementing additional procedures necessary for motor carriers to establish billing accounts to pay all insurance-related fees required by the Federal Highway Administration. A schedule of filing fees and general instructions regarding payment are provided.

Details

05/05/1999
N/A
Closed on 07/06/1999
99-11212
2125-AE06
360 387
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