[Code of Federal Regulations]
[Title 49, Volume 4]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR387.31]

[Page 1060]
 
                        TITLE 49--TRANSPORTATION
 
                      DEPARTMENT OF TRANSPORTATION
 
PART 387_MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR 
CARRIERS--Table of Contents
 
                 Subpart B_Motor Carriers of Passengers
 
Sec. 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 Sec. 387.33 
of this subpart.
    (b) Policies of insurance, surety bonds, and endorsements required 
under this section shall remain in effect continuously until terminated.
    (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.
    (2) Exception. Policies of insurance and surety bonds may be 
obtained for a finite period of time to cover any lapse in continuous 
compliance.
    (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 Sec. 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:
    (i) The required insurance endorsement (Form MCS-90B); and
    (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--
    (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
    (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 United States.

[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]