[Code of Federal Regulations]

[Title 49, Volume 5]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR375.303]



[Page 91-92]

 

                        TITLE 49--TRANSPORTATION

 

                      DEPARTMENT OF TRANSPORTATION

 

PART 375_TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE; 

CONSUMER PROTECTION REGULATIONS--Table of Contents

 

                   Subpart C_Service Options Provided

 

Sec. 375.303  If I sell liability insurance coverage, what must I do?



    (a) You, your employee, or an agent may sell, offer to sell, or 

procure liability insurance coverage for loss or damage to shipments of 

any individual shipper only when the individual shipper releases the 

shipment for transportation at a value not exceeding 60 cents per pound 

($1.32 per kilogram) per article.

    (b) You may offer, sell, or procure any type of insurance policy on 

behalf of the individual shipper covering loss or damage in excess of 

the specified carrier liability.

    (c) If you sell, offer to sell, or procure liability insurance 

coverage for loss or damage to shipments:

    (1) You must issue to the individual shipper a policy or other 

appropriate evidence of the insurance that the individual shipper 

purchased.

    (2) You must provide a copy of the policy or other appropriate 

evidence to the individual shipper at the time you sell or procure the 

insurance.

    (3) You must issue policies written in plain English.

    (4) You must clearly specify the nature and extent of coverage under 

the policy.



[[Page 92]]



    (5) Your failure to issue a policy, or other appropriate evidence of 

insurance purchased, to an individual shipper will subject you to full 

liability for any claims to recover loss or damage attributed to you.

    (6) You must provide in your tariff for the provision of selling, 

offering to sell, or procuring liability insurance coverage. The tariff 

must also provide for the base transportation charge, including your 

assumption of full liability for the value of the shipment. This would 

be in the event you fail to issue a policy or other appropriate evidence 

of insurance to the individual shipper at the time of purchase.



[69 FR 10575, Mar. 5, 2004]