# Presentation: 717353

## Financial Responsibility

## Reference

**PART 387 MINIMUM LEVELS OF **
**FINANCIAL RESPONSIBILITY FOR **
**MOTOR CARRIERS**

## 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.

## 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.

## Applicability

**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

**Notes:**
Financial responsibility regulations apply to for-hire motor carriers operating motor vehicles transporting property in interstate or foreign commerce; motor carriers operating motor vehicles transporting hazardous materials of any kind; and/or for-hire motor carriers transporting passengers in interstate or foreign commerce.

## Financial Responsibility

**Financial Responsibility**

- Having insurance policies or surety bonds sufficient to satisfy the minimum public liability requirements.

**Notes:**
Financial responsibility means having insurance policies or surety bonds sufficient to satisfy the minimum public requirements. 

## Public Liability

- Public liability means liability for bodily injury, property damage and environmental restoration.

## 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

## Definitions

**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](http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.5.htm)_
-                                          and/or
-     _[http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.29.htm](http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.29.htm)_

## Requirements

**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](http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.9.htm)_
-                                      and/or
- _[http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.33.htm](http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/387.33.htm)_

## Proof 

**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.

**Notes:**
Maintaining proof of financial responsibility is very important. Proof must be maintained at the motor carrier’s principal place of business. All vehicles must have a legible copy of the required proof if they are operating in the United States. Any vehicle with no proof of financial responsibility will not be allowed to enter into the U.S.

## Examples of Proof

**Examples of Proof**

- Form MCS-90
- Form MCS-82
- Form MCS-90B
- Form MCS-82B
- To view the forms online, please visit:
- _[http://www.fmcsa.dot.gov./factsfigs/eta/120xdt/Part_387supportfiles/Part_387.pdf](http://www.fmcsa.dot.gov./factsfigs/eta/120xdt/Part_387supportfiles/Part_387.pdf)_

## Examples of Proof

- A written decision, order, or authorization of the Federal Motor Carrier Safety Administration authorizing a motor carrier to self-insure

## State Authority

**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:

## 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

## 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

## Basis for Penalty

- Nature
- Circumstances
- Extent
- Gravity of violation
- Degree of culpability
- History of prior offenses

- Ability to pay
- Effect on ability to do business
- Such other matters as justice may require

## 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

## Part 387-Subpart C

- The Licensing and Insurance database (_[http://li-public.fmcsa.dot.gov](http://li-public.fmcsa.dot.gov/)__) provides information about the status of motor carrier filings of minimum levels of insurance._