PART 387— Minimum Levels of
Financial Responsibility for Motor Carriers
Subpart—B
The following sections have been omitted but may be reviewed on the Federal Motor Carrier Safety Administration’s website by following this link 49 CFR §§ 387.35, et seq.
- §387.35 State authority and designation of agent – OMITTED
- §387.37 Fiduciaries – OMITTED
- §387.39 Forms – OMITTED
- §387.41 Violation and penalty – OMITTED
§387.25 Purpose and scope.
This subpart prescribes the minimum levels of financial responsibility required to be maintained by for hire motor carriers of passengers operating motor vehicles in interstate or foreign commerce. The purpose of these regulations is to create additional incentives to carriers to operate their vehicles in a safe manner and to assure that they maintain adequate levels of financial responsibility.
§387.27 Applicability.
(a) This subpart applies to for hire motor carriers transporting passengers in interstate or foreign commerce.
(b) Exception. The rules in this subpart do not apply to —
(b)(1) A motor vehicle transporting only school children and teachers to or from school;
(b)(2) A motor vehicle providing taxicab service and having a seating capacity of less than 7 passengers and not operated on a regular route or between specified points;
(b)(3) A motor vehicle carrying less than 16 individuals in a single daily round trip to commute to and from work; and
(b)(4) A motor vehicle operated by a motor carrier under contract providing transportation of preprimary, primary, and secondary students for extracurricular trips organized, sponsored, and paid by a school district.
§387.29 Definitions.
As used in this subpart —
Accident — includes continuous or repeated exposure to the same conditions resulting in public liability which the insured neither expected nor intended.
Bodily injury — means injury to the body, sickness, or disease including death resulting from any of these.
Endorsement — an amendment to an insurance policy.
Financial responsibility — the financial reserves (e.g., insurance policies or surety bonds) sufficient to satisfy liability amounts set forth in this subpart covering public liability.
For-hire carriage means the business of transporting, for compensation, passengers and their property, including any compensated transportation of the goods or property or another.
Insured and principal — the motor carrier named in the policy of insurance, surety bond, endorsement, or notice of cancellation, and also the fiduciary of such motor carrier.
Insurance premium — the monetary sum an insured pays an insurer for acceptance of liability for public liability claims made against the insured.
Motor carrier means a for-hire motor carrier. The term includes, but is not limited to, a motor carrier's agent, officer, or representative; an employee responsible for hiring, supervising, training, assigning, or dispatching a driver; or an employee concerned with the installation, inspection, and maintenance of motor vehicle equipment and/or accessories.
Property damage — means damage to or loss of use of tangible property.
Public liability — liability for bodily injury or property damage.
Seating capacity — any plan view location capable of accommodating a person at least as large as a 5th percentile adult female, if the overall seat configuration and design and vehicle design is such that the position is likely to be used as a seating position while the vehicle is in motion, except for auxiliary seating accommodations such as temporary or folding jump seats. Any bench or split bench seat in a passenger car, truck or multi purpose passenger vehicle with a gross vehicle weight rating less than 10,000 pounds, having greater than 50 inches of hip room (measured in accordance with SEA Standards J1100(a)) shall have not less than three designated seating positions, unless the seat design or vehicle design is such that the center position cannot be used for seating.
§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 §387.33 of this subpart.
(b) Policies of insurance, surety bonds, and endorsements required under this section shall remain in effect continuously until terminated.
(b)(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.
(b)(2) Exception. Policies of insurance and surety bonds may be obtained for a finite period of time to cover any lapse in continuous compliance.
(b)(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 §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:
(b)(3)(i) The required insurance endorsement (Form MCS-90B); and
(b)(3)(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 —
(d)(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
(d)(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.
§387.33 Financial responsibility, minimum levels.
The minimum levels of financial responsibility referred to in §387.31 of this subpart are hereby prescribed as follows:
Schedule of Limits
Public Liability
For-hire motor carriers of passengers operating in interstate or foreign commerce.
Vehicle Seating Capacity |
Effective Date |
Effective Date |
November 19, 1983 |
November 19, 1985 |
(1) Any vehicle with a seating capacity of 16 passengers or more |
$2,500,000 |
$5,000,000 |
(2) Any vehicle with a seating capacity of 15 passengers or less 1 |
750,000 |
1,500,000 |
1 Except as provided in §387.27(b)
