[Code of Federal Regulations]
[Title 49, Volume 5]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR387.309]

[Page 299-300]
 
                        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 to filing Form BMC 40, applicants for authority 
to self-insure against bodily injury and property damage claims

[[Page 300]]

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]