Rules and regulations governing the filing of surety bonds, certificates of insurance, qualifications as a self-insurer ...

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Title:
Rules and regulations governing the filing of surety bonds, certificates of insurance, qualifications as a self-insurer or other securities and agreements by motor carriers and brokers subject to Part II of the Interstate Commerce Act Rev. July 1, 1960
Physical Description:
10 p. : ; 24 cm.
Language:
English
Creator:
United States -- Interstate Commerce Commission
Publisher:
U.S. Govt. Print. Off.
Place of Publication:
Washington
Publication Date:

Subjects

Subjects / Keywords:
Automobiles -- Law and legislation -- United States   ( lcsh )
Carriers -- United States   ( lcsh )
Genre:
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also issued online.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004950959
oclc - 67311879
System ID:
AA00012207:00001


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INTERSTATE COMMERCE COMMISSION -




RULES AND REGULAR N


GOVERNING THE FILING OF SURETY BO U -

ICATES OF INSURANCE, QUALIFICATIONS AS A SELF-

INSURER'OR OTHER SECURITIES AND AGREEMENTS BY

MOTOR CARRIERS AND BROKERS SUBJECT TO PART II

OF THE INTERSTATE COMMERCE ACT


REVISED JULY 1, 1960


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1960


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For sale by the Superintendent of Documents, U.S. Government Printing Office
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INTERSTATE COMMERCE COMMISSION


RULES AND IR1:(;ULATIONS GOVEI-NING TIE FILING OF SURETY BONDS, CER-
TIFICATES OF INSURANCE, QUALIFICATIONS AS A SELF-INSURER OR OTHER
SECURITIES AND AGREEMENTS BY MOTOR CARRIERS AND BROKERS SUBJECT
TO PART II OF THE INTERSTATE COMMERCE ACT

SECTIONS 211(c) AND 215 OF THE INTERSTATE COMMERCE ACT

SEC. 211(c). The Commission shall prescribe reasonable rules and
regulations for the protection of travelers or shippers by motor vehicle,
to be observed by any person holding a brokerage license, and no such
license shall be issued or remain in force unless such person shall have
furnished a bond or other security approved by the Commission, in
such form and amount as will insure financial responsibility and the
supplying of authorized transportation in accordance with contracts,
agreements, or arrangements therefore.
SEC. 215. No certificate or permit shall be issued to a motor ca rrier
or remain in force, unless such carrier complies with such reasonable
rules and regulations as the Commission shall prescribe governing the
filing and approval of surety bonds, policies of insurance, qualifica-
tions as a self-insurer or other securities or agreements, in such rea-
sona1)le amount as the Commission may require, conditioned to pay,
within the amount of such surety bonds, policies of insurance, quali-
fications as a self-insurer or other securities or agreements, any final
judgment recovered against such motor carrier for bodily injuries
to or the death of any person resulting from the negligent operation,
maintenance, or use of motor vehicles under such certificate or permit,
or for loss or damage to property of others. The Commission, may, in
its discretion and under such rules and regulations as it shall prescribe,
require any such common carrier to file a surety bond, policies of
insurance, qualifications as a self-insurer, or other securities or agree-
ments, in a sum to be determined by the Commission, to be conditioned
upon such carrier making compensation to shippers and/or con-
signees for all property belonging to shippers and/or consignees, and
coming into the possession of such carrier in connection with its trans-
portation service. Any carrier which may be required by law to com-
pensate a shipper and/or consignee for any loss, damage, or default
for which a connecting motor common carrier is legally responsible
1
549998-60





2 INTERSTATE COMMERCE COMMISSION

shall be subrogated to the rights of such shipper and/or consignee
under any such bond, policies of insurance, or other securities or agree-
ments, to the extent of the sum so paid. The Commission may
prescribe, with respect to motor carriers operating within the United
States in the course of engaging in transportation between places in a
foreign country or between a place in one foreign country and a place
in another foreign country, such reasonable regulations concerning
security for the protection of the public as the Commission is
authorized, by this section, to prescribe for other motor carriers.













TITLE 49-TRANSPORTATION


CHAPTER I-Interstate Commerce Commission

SUBCHAPTER B--CARRIERS BY MOTOR VEHICLES
Part 174-Surety Bonds and Policies of Insurance
EX PARTE NO. MC 5
IN THE MATTER OF SECURITY FOR THE PROTECTION OF THE PUBLIC AS
PROVIDED IN PART II OF THE INTERSTATE COMMERCE ACT, and of
rules and regulations governing filing of surety bonds, certificates
of insurance, qualifications as a self-insurer, or other securities and
agreements by motor carriers and brokers subject to part II of the
Interstate Commerce Act.
Sec.
174.1 Surety bond, certificate uo insurance or other securities.
(a) Property damage; public liability.
(b) Common carriers--cargo insurance; exempt com-
modities.
(c) Carriers partially exempt; leased rights.
(d) Contiuingcoimpliance required.
174.2 Insurance, minimum amounts.
(a) Motor carriers; bodily injury liability, property
damage liability.
(b) Motor common carriers; cargo liability.
174.3 Combination vehicles.
174.4 Brokers.
174.5 Qualifications.
(a) As a self-insurer.
(b) Other securities or agreements.
174.6 Bonds and certificates of insurance.
174.7 Forms and procedure.
(a) Forms of endorsements, cancellation notices, etc.
(b) Filing of certificates of insurance and cancella-
tion notices, etc.
(c) Name of insured.
(d) Cancellation notice.
(e) Termination by replacement.





INTERSTATE COMMERCE COMMISSION


Sec.
174.8 Insurance and surety comipa n ies; authorized.
(a) St i te authority and designation of agent.
(b) Financial resources.
174.9 Refusal to accept, or revocation by Commission of surety
bond, etc.
174.10 Fiduciaries.
(a) Insured and principal defined.
(b) Insurance coverage in behalf of fiduciaries to apply
concurrently.
174.11 Operations in foreign commelIrce.
(Authority: 49 Stat. 546 as amended, 49 U.S.C. 304-Interpret
or apply 49 Stat. 554 as amended 557,49 U.S.C. 311, 315)
174.1 Surety bond, certificate of insurance, or other securities.
(a) Pr'uprty damage; public liability. Except as provided in para-
graph (c) of this section, no common or contract carrier subject to
part II of the Interstate Commerce Act shall engage in interstate or
foreign commerce, and no certificate or permit shall be issued to such a
carrier or remain in force unless and until there shall have been filed
with and accepted by the Commission a surety bond, certificate of in-
surance, proof of qualifications as a self-insurer, or other securities
or agreements, in the amounts prescribed in section 174.2, conditioned
to pay any final judgment recovered against such motor carrier for
bodily injuries to or the death of any person resulting from the
negligent operation, maintenance or use of motor vehicles in trans-
portation subject to part II, Interstate Commerce Act, or for loss of
or damage to property of others.
(b) Common carriers-cargo insurance; exempt commodities. Ex-
cept as provided in paragraph (c) of this section, no common carrier
by motor vehicle subject to part II of the Interstate Commerce Act
shall engage in interstate or foreign conImlerce, nor shall any certificate
be issued to such a carrier or remain in force unless and until there
shall have been filed with and accepted by the Commission a surety
bond, certificate of insurance, proof of qualifications as a self-insurer,
or other securities or agreements in the amounts prescribed in section
174.2, conditioned upon such carrier making compensation to shippers
or consignees for all property belonging to shippers or consignees and
coming into the possession of such carrier in connection with its trans-
portation service; Provided, that the requirements of this paragraph
shall not apply in connection with the transportation of the following
commodities:





RULES AND REGULATIONS


Ashes, wood or coal.
Bituminous concrete (also known as blacktop or amosite),
including i x t u res of asplhal t paving.
Cement, dry, in conta iners or in bulk.
Cen ie nt. building blocks.
Cinders, coal.
Coal.
Coke.
Commercial fertilizer.
Corn cobs.
Cottonseed hulls.
Fish scrap.
Forest products; viz: Logs, billets, or bolts, native wood,
Canadian wood or Mexican pine; pulpwood, fuel wood,
wood kindling; and wood sawdust or shavings (shingle
tow) otliir than jewe-lers' or 1par iffined.
Garbage.
Gravel, other than bird gravel.
Ice.
Iron ore.
Lime and limestone.
Lumber.
Manure.
Meat scraps.
Ores in bulk, including ore concentrates.
Peat moss.
Poles and piling, other than totem poles.
Salt, in bulk or in bags.
Sand, other than asbestos, bird, iron, monazite, processed,
or tobacco sand.
Scrap iron.
Scrap steel.
Shells, clam, mussel or oyster.
Slag, other than slag with commercial value for the further
extraction of metals.
Slate, crushed or scrap.
Soil, earth or marl, other than infusorial, diatomaceous,
tripoli, or inoculated soil or earth.
Stone, unglazed and unmanufactured, including ground
agricultural limestone.
Sugar beet pulp.
Sugar beets.
Water, other than mineral or prepared water.





INTERSTATE COMMERCE COMMISSION


Wrecked or disabled motor vehicles.
Other minuterinis or commodities, of low value, upon specific
application to and approval by the Commission.

(c) Clirr;.r. part'!7ly .i'ieipt; leased rights. The requirements of
par;agrlphs (a) and (b) of this section shall not apply to motor car-
rier operatioltns partially exempt from regulation by sections 202(c)
and 203(b) (49 U.S.C. 302 (c) and 303(b)), or to motor carriers which
have, with the approval of the Commission, leased their entire oper-
a ting rights to others, but only so long as the lessee of such rights, with
the approval of the Commission, continues such operations. Lessors
may not re.sini e operations unless and until full compliance is effected.
(d) Co ;wlhig con,,ilian c ril;r'il. Such security as is accepted
by the Commission in accordance with the requirements of sections
211(c) and 215 of part II, Interstate Commerce Act, shall remain in
effect at all times.
174.2 IJ,,1111 ,L .:, minimum amounts. The minimum amounts re-
ferred to in section 174.1 are hereby prescribed as follows:
(a) Motor carri '; bod1l'y injury liability, property damage
liability.

(1) (2) (3) (4)
Limit for bodily
injuries to or Limit for
Limit for death of all loss or
bodily persons injured damage in
injuries or killed in any any one
Kind of equipment to or one accident accident
death (subject to a to property
of one maximum of of others
person $25,000 for (excluding
bodily injuries cargo)
to or death
of one person)

Iy' .. ,nL.! ipll nment (seating capacity):
p i, .L rs or less. ..---------------------------- --------- $25,000 $100,000 $10,000
8 to 12 passengers, inclusive ------------------------ 25,000 150,000 10,000
13 to 20 passengers, inclusive -----------... ------------ 25,000 200,000 10,000
21 to 30 passengers, inclusive ----------------------------- 25,000 250,000 10,000
31 passengers or more.------------------- 25,000 300,000 10,000
Freight equipment: All motor vehicles used in the transporta-
tion of property.---. ---- ----------------- ..----------------. 25,000 100,000 10,000


(b) Motor common carriers; cargo liability. Security required to
compensate shippers or consignees for loss of or damage to property
belonging to shippers or consignees and coming into the possession
of motor common carriers in connection with their transportation
service, (1) for loss of or damage to property carried on any one
motor vehicle-$1,000; (2) for loss of or damage to or aggregate of
losses or damages of or to property occurring at any one time and
place-$2,000.





RULES AND REGULATIONS


174.3 Combination vehicles. The following combinations will be
regarded as one motor vehicle for purposes of these rules: (1) a
tractor and trailer or semi-trailer when the tractor is engaged solely
in drawing the trailer or semi-trailer, and (2) a truck and trailer
when both together bear a single load.
174.4 Brokers. No person, firm or corporation shall engage in
the business of a broker as defined in part II, Interstate Commerce
Act, and no brokerage license shall be issued to any such person, firm
or corporation nor remain in force unless and until such person, firm
or corporate ion shall have furnished a bond or other security approved
by the Commission in an amount of not less than $5,000, and in such
form as will insure the financial responsibility of such broker and
the supplying of authorized transportation in accordance with the
co1ntra'tts, agreements, or arr' ngimel its therefore.
174.5 Qu&Ilific.ttionh (a) As a self-insurer. The Commission
will give consideration to and will approve the application of a motor
carrier to qualify as a self-insurer if such carrier furnishes a true
and accurate statement of its financial condition and other evidence
which will establish to the satisfaction of the Coiniiisiion the ability
of such motor carrier to satisfy its obligations for bodily injury
liability, property damage liability, or cargo liability without affecting
the stability or permanency of the business of such motor carrier.
(b) Other securities or agrcf ntls. The Commission will also con-
sider applications for approval of other securities or agreements and
will approve any such applications if satisfied that the security or
agreement offered will afford the security for the protection of the
public contemplated by sections 211(c) and 215 of part II, Interstate
Commerce Act.
174.6 Bonds and certificates of insurance. Each certificate of
insurance or surety bond filed with the Commission must be for the
full limits of liability required under these sections, Pro o'eld, that
only corporations or companies approved by the Commission may
qualify to act as surety.
174.7 Forms and procedure. (a) Forms of endorsements, cam-
cellation notices, etc. Endoreinelnts for policies of insurance, and
surety bonds, certificates of insurance, applications to qualify as a
self-insurer, or for approval of other securities or agreements, and
notices of cancellation must be in the form prescribed and approved by
the Commniss.ion. Surety bonds and certificates of insurance shall
specify that coverage thereunder will remain in effect continuously
until terminated as herein provided, except that in special or unusual
circumstances special permission may be obtained for filing certificates
of insurance or surety bonds covering periods of less than twelve
months duration.





INTERSTATE COMMERCE COMMISSION


(b) Filing of certificates of insurance and cancellation notices, etc.
Certificates of insurance, surety bonds, and notices of cancellation
must be filed with the Commission in triplicate.
(c) Name of in, xrcd. Certificates of insurance and surety bonds
shall be issued in the full and correct name of the individual, partner-
ship, corporation or other person to whom the certificate, permit, or
license is, or is to be, i-siiel. In the case of a partnership all partners
shall be named.
(d) Can,'llif,,ii no/;lr. Except as provided in paraigraph (e) of
this section, surety bonds, certificates of insurance and other securities
or agreements shall not be cancelled or withdrawn until after thirty
(30) days' notice in writing by the insurance company, surety or
sureties, motor carrier, broker or other party tliereto, as the case may
be, has first been given to the Cominission at its office in Washington,
D.C., which period of thirty (30) days shall commence to run from
the date such notice is actually received at the office of the Commission.
(e) Te rn inait/tio by reph1,, inet. Certificates of insurance or surety
bonds which have been o'cepted by the Commission under these rules
may be replaced by other certificates of insurance, surety bonds or
other security, and the liability of the retiring insurer or surety under
such certificates of insurance or surety bonds shall be considered as
having terminated as of the effective date of the replacement certificate
of insurance, surety bond or other security, P'o, vrhid the said replace-
ment certificate, bond or other security meets all of the following
conditions: (1) it must be acceptable to the Commission under these
rules and regulations; (2) it must be accompanied by a letter of
authorization, in du1lht/fe, signed by the motor carrier involved or
an authorized employee of such motor carrier, authorizing such re-
placement and verifying the effect ive date thereof; and (3) its effec-
tive date must coincide with the effective date specified in the letter of
authorization and the said date may not be more than thirty days
prior to the date of receipt by the Conmnission of the letter of
authorization and replacement certificate.
174.8 Insurance and surety companies; authorized. (a) State
authority and designation of agent. No certificate of insurance or
surety bond will be accepted by the Commission under these sections
unless written or issued by an insurance or surety company legally
authorized to issue policies of the type indicated by such certificate
or surety bond, as the case may be, in each State in which the motor
carrier is authorized to operate under part II of the Interstate Com-
merce Act and such company fully complies with paragraph (b) of
this section; Provided, however, that in lieu of the licensing require-
ment with respect to any State except that in which the motor carrier
has its principal place of business or domicile the company may file





RULES AND REGULATIONS


with the Commission a (desigination in writing of the name and post
office address of a person in each such State upon w homl pIroe-s i-'oed
by or under the authority of any coult, having jurisdiction of the
subject Imatter may be served in any proceeding at law or equity
brought against such company. Such designation may froml, time to
time be cleaned by like designation similarly filed, but shall be main-
tained during the effectiveness of any certificate of insurance or surety
bond issued by the company, and thereafter with respect to any claims
arising during the effectiveness of such certificafe or bond.
(b) F inarni, rI'surt,.s.. Each insurance and surety company must
possess and maintain surplus funds (policyholders' surplus) of not
less than $500,000, which minimum will be determined on the ba-is of
the values of assets and liabilities as shown in its financial statements
filed with and approved by the insurance department or other in-
surance regulatory authority of the State of domicile (home State) of
such company, except in instances where, in the judgment of the Corn-
mission, additional evidence. with respect to such values is considered
necessary; Provided, however, That this subsection shall be effective
December 31, 1960, as respects insurance and surety companies which
are, on June 30, 1957, authorized to file certificates of insurance and
surety bonds with the Commission.
174.9 Refusal to accept, or rc coral ion by Comnisi-,sion of surety
bond, etc. The Commission may, at any time refuse to accept or may
revoke its acceptance of any surety bond, certificate of insurance,
qualifications as a self-insurer, or other securities or agreements if,
in its judgment such security does not comply with these sections or
for any reason fails to provide satisfactory or adequate protection
for the public. Revocation of acceptance of any certificate of in-
surance, surety bond, or other security shall not relieve the motor
carrier from compliance with section 174.1(d) of these rules and
regulations.
174.10 Fiduciaries. (a) Insured and principal d finid. The
terms "insured" and "principal" as used in certificates of insurance,
surety bonds and notices of cancellation filed by or in behalf of motor
carriers under these sections shall be construed to include not only the
motor carrier named in the certificate, surety bond or notice of can-
cellation, but also the fiduciary of such motor carrier as defined in
section 179.3 of this chapter-Transfers of Operating Rights. The
coverage of fiduciaries herein provided for shall attach at the moment
of succession of such fiduciaries.
(b) Insuriance coverage in behalf of fidCciarlies to apply concur-
rently. The coverage furnished under the provisions of this section
on behalf of fiduciaries shall not apply subsequent to the effective date
of other insurance, or other security, filed with and approved by the




UNIVERSITY OF FLORIDA
10 IN E RS A TIE CIMRllIIlE 111111 II III1111111 IIII lll11111111 11111ll ll
10 INTERSTATE COMMERCE ( 3 1262 08854 4613
Commission in behalf of such fiduciaries. After the coverage pro-
vided in this section shall have been in effect thirty (30) days, it may
be canceled or withdrawn within the succeeding period of thirty (30)
days by the insurer, the insured, the surety, or the principal upon
ten (10) days' notice in writing to the Commission at its office in
Washington, D.C., which period of ten (10) days shall commence to
run from the date such notice is actually received by the Commission.
After such coverage has been in effect for a total of sixty (60) days,
it may be canceled or withdrawn only in accordance with section
174.7 of these rules and regulations.
174.11 Operations in foreign commerce. No motor carrier may
operate in the United States in the course of transportation between
places in a foreign country or between a place in one foreign country
and a place in another foreign country unless and until there shall
have been filed with and accepted by the Commission a certificate of
insurance, surety bond, proof of qualifications as a self-insurer, or
other securities or agreements in the amount prescribed in section
174.2(a), conditioned to pay any final judgment recovered against
such motor carrier for bodily injuries to or the death of any person
resulting from the negligent operation, maintenance, or use of motor
vehicles in transportation between places in a foreign country or be-
tween a place in one foreign country and a place in another foreign
country, insofar as such transportation takes place in the United
States, or for loss of or damage to property of others. The security
for the protection of the public required by this section shall be
maintained in effect at all times and shall be subject to the provisions
of sections 174.5, 174.6, 174.7, 174.8, 174.9 and 174.10; Provided, that
the requirements of section 174.8 (a) shall be satisfied if the insurance
or surety company, in addition to having been approved by this Com-
mission, is legally authorized to issue policies or surety bonds in at
least one of the States in the United States, or one of the Provinces
in Canada, and has filed with this Commission the name and address
of a person upon whom legal process may be served in each State in
or through which the motor carrier operates. Such designation may
from time to time be changed by like designation similarly filed, but
shall be maintained during the effectiveness of any certificate of
insurance or surety bond issued by the company, and thereafter with
respect to any claims arising during the effectiveness of such certifi-
cate or bond; and Provided further, that the term "motor carrier'
as used in this section shall not include private carriers or carriers
operating under the partial exemptions from regulation in sections
202(c) or 203(b) of the Interstate Commerce Act (49 U.S.C. 302(c)
and 303(b)).




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