[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: 49CFR387.309]



[Page 295-296]

 

                        TITLE 49--TRANSPORTATION

 

                      DEPARTMENT OF TRANSPORTATION

 

PART 387_MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR CARRIERS

--Table of Contents

 

Subpart C_Surety Bonds and Policies of Insurance for Motor Carriers and 

                            Property Brokers

 

Sec. 387.309  Qualifications as a self-insurer and other securities or 

agreements.



    (a) As a self-insurer. The FMCSA will consider and will approve, 

subject to appropriate and reasonable conditions, the application of a 

motor carrier to qualify as a self-insurer, if the carrier furnishes a 

true and accurate statement of its financial condition and other 

evidence that establishes to the satisfaction of the FMCSA the ability 

of the motor carrier to satisfy its obligation for bodily injury 

liability, property damage liability, or cargo liability. Application 

Guidelines: In addition



[[Page 296]]



to filing Form BMC 40, applicants for authority to self-insure against 

bodily injury and property damage claims should submit evidence that 

will allow the FMCSA to determine:

    (1) The adequacy of the tangible net worth of the motor carrier in 

relation to the size of operations and the extent of its request for 

self-insurance authority. Applicant should demonstrate that it will 

maintain a net worth that will ensure that it will be able to meet its 

statutory obligations to the public to indemnify all claimants in the 

event of loss.

    (2) The existence of a sound self-insurance program. Applicant 

should demonstrate that it has established, and will maintain, an 

insurance program that will protect the public against all claims to the 

same extent as the minimum security limits applicable to applicant under 

Sec. 387.303 of this part. Such a program may include, but not be 

limited to, one or more of the following: Irrevocable letters of credit; 

irrevocable trust funds; reserves; sinking funds; third-party financial 

guarantees, parent company or affiliate sureties; excess insurance 

coverage; or other similar arrangements.

    (3) The existence of an adequate safety program. Applicant must 

submit evidence of a current ``satisfactory'' safety rating by the 

United States Department of Transportation. Non-rated carriers need only 

certify that they have not been rated. Applications by carriers with a 

less than satisfactory rating will be summarily denied. Any self-

insurance authority granted by the FMCSA will automatically expire 30 

days after a carrier receives a less than satisfactory rating from DOT.

    (4) Additional information. Applicant must submit such additional 

information to support its application as the FMCSA may require.

    (b) Other securities or agreements. The FMCSA also will consider 

applications for approval of other securities or agreements and will 

approve any such application if satisfied that the security or agreement 

offered will afford the security for protection of the public 

contemplated by 49 U.S.C. 13906.



[48 FR 51780, Nov. 14, 1983 and 51 FR 15008, Apr. 22, 1986, as amended 

at 52 FR 3815, Feb. 6, 1987; 62 FR 49941, Sept. 24, 1997; 68 FR 56199, 

Sept. 30, 2003]