INSURANCE Act of 2021
Bill: H.R.2687 | Sponsor: Rep. Garcia, Jesus G. "Chuy" (D-IL)
Policy area: Transportation and Public Works

Summary:
Improving National Safety by Updating the Required Amount of Insurance Needed by Commercial Motor Vehicles per Event Act of 2021 or the INSURANCE Act of 2021
This bill increases the minimum level of insurance required for motor carriers transporting property.
The Department of Transportation must adjust the minimum insurance requirement every five years to account for inflation relating to medical care.

To increase the minimum levels of financial responsibility for 
  transporting property, and to index future increases to changes in 
                  inflation relating to medical care.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improving National Safety by 
Updating the Required Amount of Insurance Needed by Commercial Motor 
Vehicles per Event Act of 2021'' or the ``INSURANCE Act of 2021''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) In passing the Motor Carrier Act of 1980, Public Law 
        96-296, Congress intended for the minimum insurance levels to 
        maintain safety. According to the House Report No. 96-1069, 
        ``the action of the Committee in increasing financial 
        responsibility is to encourage the carriers to engage in 
        practices and procedures that will enhance the safety of their 
        equipment so as to afford the best protection to the public.''.
            (2) The National Transportation Policy Study Commission 
        (which consisted of six Members of the Senate, six Members of 
        the House of Representatives, and seven public members 
        appointed by the President) recommended mandatory minimum 
        insurance requirements of $1,000,000, in its 1979 Final Report 
        to the Congress, National Transportation Policies through the 
        Year 2000. The Report stated: ``As an example, all certificated 
        motor carriers operating upon the highways should be obligated 
        to carry adequate insurance (or proof of financial 
        responsibility equal to such insurance) to protect the public. 
        The insurance should cover public liability, property, damage, 
        cargo and environmental restoration with a $1 million for 
        single occurrence, or another minimum amount sufficient to 
        require periodic `on site' inspection by the insurance company, 
        with the minimum to be updated regularly. Non-certificated 
        motor carriers should be subject to similar standards.''.
            (3) According to the U.S. Bureau of Labor Statistics, the 
        amount of $750,000, set in 1980 (the year of enactment), would 
        have the same purchasing power as $5,193,665.62 in 2020, if the 
        amount was raised to account for medical-cost inflation.

SEC. 3. MINIMUM FINANCIAL RESPONSIBILITY FOR TRANSPORTING PROPERTY.

    (a) In General.--Section 31139(b) of title 49, United States Code, 
is amended--
            (1) in paragraph (2), by striking ``$750,000'' and 
        inserting ``$5,000,000''; and
            (2) by adding at the end the following:
            ``(3) Adjustment.--The Secretary, in consultation with the 
        Bureau of Labor Statistics, shall adjust the minimum level of 
        financial responsibility under paragraph (2) quinquennially for 
        inflation relating to medical care.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date that is 1 year after the date of enactment of 
this Act.
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