Wednesday, December 10, 2014

Comments Requested on Increase In Liability Insurance Minimum

Last month the FMCSA seemed ready to release an NPRM to raise the current amount of liability insurance carriers are required to maintain.

The current regulatory minimum for commercial motor vehicles carrying property is $750,000 per occurrence although most carriers maintain $1,000,000 in coverage. Although the minimum has not been changed in decades and the cost of catastrophic loss has escalated, determining a new amount requires a cost benefit analysis including an examination of the effect of resulting increased premiums on small carriers (ATA and OOIDA contend that just 1%  of all truck related crashes exceed the current minimum).

Clearly sufficient opposition to increasing the statutory minimums has been raised to require the agency to delay its implementation schedule and gather more industry input before proceeding.

The Agency proposes the open docket format and has elicited responses to 26 questions. These questions involve not only increased minimum level for truck insurance but also questions concerning implementation of broker and forwarder rules in light of MAP-21 and specific questions relating to trip insurance for Mexican carriers and potential broker's bond requirement for passenger brokers.

For a complete copy of the advance notice and t
he 26 questions, please visit (!documentDetail;D=FMCSA-2014-0211-0001).

Comments are due February 26, 2015.

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