When does the MCS90 respond?

A leading expert in the Trucking Insurance Industry, Tommy Ruke founder of the MCIEF, “Motor Carrier Insurance Education Foundation” wrote an excellent blog that will help many understand what the MCS90 is and what it is not as well as when it will respond and when it does not.

MCS90/91X – PROTECTION MIGHT NOT BE WHAT SOME PEOPLE THINK

By: Tommy Ruke

Rob Moseley of Smith Moore Leatherwood and I were doing a program the other day and some of the participants were brokers.  In deciding which motor carrier they would arrange to haul a load on their customer’s behalf, they said that they “relied” on the federal 91X filing and the MCS90 that must be attached to the policy issued to the motor carrier who was issued the filing.  Their thought is, “After all, it pays even if no coverage” (which is absolutely wrong for protection of the broker and shipper).  Shortly thereafter, an agent called and said one of their insureds could not haul a load for a broker because the broker required $1,000,000 and the Licensing & Insurance web page only reflected $750,000. The broker that relies on the 91X filing and MCS90 attached to the policy with the motor carrier they arranged to haul the load to provide them and their customer’s protection and do not understand how these federal mandated financial responsibility requirements react to a claim.  Hopefully, readers of this blog understand the proof of financial responsibility only protects the damaged public if the insured’s insurance policy does not pay the claim and leave the motor carrier subject to subrogation.  The proof of financial responsibility does not provide coverage to anyone including the motor carrier who is the insured or any other additional insured. The broker or shipper should rely on the COI sent to them by the motor carrier’s agent.  They do need to be aware that there are some agents that might not properly reflect coverage and sometimes send a COI they make-up so the broker should take steps to verify the information on the COI.  The bottom line is the COI sent by the agent is better proof of protection to the broker or shipper than relying on the federal website’s reflection of the 91X filing. You all should know that the Auto Liability policies that are issued address the customer’s required coverage.  The policy is primary, the customer is an additional insured, the carrier cannot seek contribution and the insured is allowed to waive subrogation as long as done before the accident.  Without any endorsements, these provisions are within the standard ISO Auto Liability policy.  The broker needs to make sure the auto picking up the load is a covered auto in policy so a schedule of covered autos should be reflected on the COI if “Any Auto” is not provided.