49 C.F.R. § 387.31

Financial responsibility required

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(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.

(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 transmitted. Proof of transmission 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 § 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 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)(1) 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.

(2) In addition to maintaining proof of financial responsibility as required by paragraph (d) of this section, non-North America-domiciled private and for-hire motor carriers shall file evidence of financial responsibility with FMCSA in accordance with the requirements of subpart C of this part.

(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; 73 FR 76496, Dec. 16, 2008; 83 FR 16226, Apr. 16, 2018]

Notes of Decisions

Cited in 7 cases (2 in the last 5 years), 2007–2022 · leading case: Lyons v. Lancer Insurance

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Lyons v. Lancer Insurance (2012) ca2 “§ 18(d), reflected in an insurance policy endorsement on “Form MCS-90B,” 49 C.F.R. § 387.31 (d)(1). That form stated that the insurer agreed to pay, within the limits of the policy to which the endorsement was attached, “any final judgment recovered against the insured for…”

Lincoln General Insurance v. De La Luz Garcia (2007) ca5 “(emphasis added); see also 49 C.F.R. § 387.31 (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 .”

INSURANCE CORP. OF NEW YORK v. Monroe Bus Corp. (2007) nysd “See 49 C.F.R. §§ 387.31 (a), (d)(1), 387.33. The endorsement “must be in the form prescribed by” the Federal Motor Carrier Safety Administration (the “FMCSA”) of the DOT, and a sample form — Form MCS-90B — is set out in the regulations themselves.”

Mary J. Moore v. Bi-State Development Agency d/b/a Metro (2019) moctapp “” 49 C.F.R. Part 387.31, .33T. As further explained in Subpart C, which contains rules for the insurance policies, financial responsibility requirements are satisfied by the entity acquiring an insurance policy or surety bond meeting the minimum “amounts prescribed in [Part] 387.”

Mary J. Moore v. Bi-State Development Agency d/b/a Metro (2020) mo “49 C.F.R. § 387.31 . The minimum limit for a “vehicle with a seating capacity of 16 passengers or more, including the driver” is $5 million dollars.”

Philadelphia Indemnity Insurance Company v. Transit U, Inc. (2021) ded “” 49 C.F.R. § 387.31 . Delaware law adopts the same language as the federal regulations regarding securing financial responsibility for motor carriers.”

Lancer Insurance Company v. Jet Executive Limousine Service, Inc. (2022) gand “Secretary of Transportation authority to enforce certain minimum coverage amounts for motor carriers: The Secretary of Transportation shall prescribe regulations to require minimum levels of financial responsibility sufficient to satisfy liability amounts established by the…”

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