[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: 49CFR387.31]



[Page 288-289]

 

                        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



[[Page 289]]



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]