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3. CA-00-10

Motor Carrier Coverage Form (CA 00 10)

The Motor Carrier Coverage Form (CA 00 10) is an insurance policy form designed to provide liability and physical damage coverage for businesses that transport goods for others (motor carriers or truckers) or those that use autos in their own hauling operations. It is a crucial form within commercial auto insurance, specifically tailored to the unique risks faced by the transportation industry.

Classes of Business It Applies To

This form is primarily used for businesses operating as motor carriers, which can include a wide range of operations. Here are some specific examples:

• Common Carriers: Companies that offer their transport services to the general public for a fee, such as long-haul trucking companies transporting various goods for different customers.
• Contract Carriers: Businesses that transport goods for specific clients under a contractual agreement. For example, a trucking company that exclusively hauls products for a particular manufacturing plant.
• Private Carriers: Companies that haul their own goods. For instance, a large retail chain that owns and operates its own fleet of trucks to distribute merchandise to its stores. While the Business Auto Coverage Form (CA 00 01) can also be used for private carriers, the Motor Carrier Coverage Form (CA 00 20, which replaced CA 00 12 Truckers Coverage Form and is similar in intent to the CA 00 10 for physical damage) is often preferred when trucking is a significant part of the insured's operations or if they occasionally haul for others.
• Businesses that lease or hire autos for trucking purposes: This can include companies that don't own their trucks but lease them with or without drivers to transport goods.

It's important to note that the term "motor carrier" in the context of this form is broad and not strictly limited to traditional "truckers." It can apply to any entity using vehicles to transport property for commercial purposes.

Special Considerations

There are several important factors to consider when using the Motor Carrier Coverage Form:

• Regulatory Requirements: Motor carriers are often subject to specific federal and state regulations, including financial responsibility laws (e.g., MCS-90 endorsement for interstate truckers). This form is designed to help meet these requirements, but careful attention must be paid to ensure all applicable mandates are addressed, often through endorsements.
• Trailer Interchange Coverage: A common exposure for motor carriers is damage to trailers they don't own but are using under a trailer interchange agreement. Specific endorsements are typically needed to address this exposure.
• Hired and Non-Owned Auto Liability: Motor carriers frequently use vehicles they don't own (e.g., owner-operators under lease, short-term rentals). The form can provide coverage for these exposures, but the appropriate covered auto symbols must be selected on the declarations page.
• Distinction from Business Auto Coverage Form (CA 00 01): While the Business Auto Coverage Form (CA 00 01) can cover trucking risks, the Motor Carrier Coverage Form is specifically designed for the trucking industry and may offer more appropriate terms and conditions, particularly concerning how coverage applies in lease situations (e.g., whether coverage is primary or excess when a vehicle is leased to or from another motor carrier).
• Physical Damage Only: The CA 00 10 specifically refers to the Business Auto Physical Damage Coverage Form. This form is used when liability coverage is provided elsewhere, and only physical damage protection is needed for commercial vehicles. However, it's noted that the Business Auto Physical Damage Coverage Form (CA 00 10) was eliminated with the 10/13 edition of ISO auto coverage forms, and coverage previously written on CA 00 10 should now be written on CA 00 01 (Business Auto Coverage Form) or CA 00 20 (Motor Carrier Coverage Form).

Key Information for Agents and Underwriters

Agents and underwriters should focus on the following when dealing with the Motor Carrier Coverage Form:

• Covered Auto Symbols: The selection of the correct covered auto designation symbols on the declarations page (e.g., CA DS 01 is a declarations page) is critical. These symbols dictate which vehicles are insured and for what coverages. Using an overly broad symbol like "Any Auto" (Symbol 61 in the CA 00 20) should be done cautiously, especially for physical damage.
• Risk Assessment: Underwriting motor carriers involves a thorough evaluation of the named insured's operations, including the types of cargo hauled (some commodities present higher risks), routes of travel (long-haul vs. local), driver hiring and safety programs, vehicle maintenance practices, and loss history. Management's attitude towards safety is a key underwriting consideration.
• Radius of Operations: This is a significant rating factor. Long-haul carriers typically present different risks than those operating locally.
• Filings and Endorsements: Ensure all necessary financial responsibility filings (e.g., federal MCS-90, state-specific forms) are in place and that appropriate endorsements are attached to tailor the policy to the insured's specific needs (e.g., trailer interchange, hired auto physical damage).
• Lease Agreements: Carefully review any lease agreements the insured has with owner-operators or other parties to determine insurance responsibilities and ensure coverage aligns with contractual obligations. The form's language regarding primary vs. excess coverage in lease situations is particularly important.
• Coverage Gaps: Be aware of potential coverage gaps, such as damage to cargo (which is typically covered under a separate motor truck cargo policy), and exclusions within the form. For example, property damage to property the insured owns or transports, or that is in their care, custody, or control, is generally excluded unless liability was assumed under a sidetrack agreement.
• Pricing: Pricing will be influenced by factors such as the types and number of vehicles, radius of operation, types of cargo, driving records, loss history, and the coverages and limits selected.

The CA DS 01, Commercial Auto Declarations, is a related form that would be used in conjunction with the CA 00 10 (or its replacements) to specify the named insured, policy period, coverages, limits, covered autos, and other essential details of the insurance policy.